Paperless filing

[ILLMAS]

Hello to all, I want to get your opinion about organizing tax returns after I have scanned them. So far any 2010 return I have prepared I am no longer making a paper copy for my records, basically I scan the TP return + all docs used to prepare it (W-2's, 1098, 1099s, notes etc...) and I created a folder called Tax Return Files and I created sub-folders 2007, 2008, 2009, 2010 (2007 was the first year I was on my own), so right now I have only done a few returns and been putting them in the 2010. Now here is my dilemma, would be wise just to create a folder for each client and just put all years in the clients folder, I think that would be easier to search, because you know what client you are looking for instead of going by year, anyway please comment, trust I am not the most organized person in the world.

MAS

[GeorgeM]

I have been doing this for the last 4 years, and my setup is as follows:

1. Create a directory on your hard drive called Clients or Tax info or Tax returns, or whatever you like.

2. Scan in the documents from the client, and name the file 2010 tax info, (client name) and save them the above dir with a sub dir withe the clients name.

3. Print the complete return to PDF and save it as 2010 tax return, (client name) and save it to the client name directory.

This has been working for me, and whenever I need info for a client it is all in one directory. Using the year in front of the file you create makes it easier to look up information when needed.

[Kea]

I started scanning in all my files last year. I'm not paperless, yet. I still plan to keep the current and last couple of years, because that's what's more comfortable for me. But the directory structure I set up is:

CLIENTS folder

Within CLIENTS, l have a folder for each client -- past and present.

Within Client Name (say, DOE_JANE), I have a folder for each year that I have prepared a return. I also keep spreadsheets and other info that apply to multiple years. Those stay at the top level of that particular client's folder & not in a specific year.

Within specific year (say, 2010), I have files for all my notes and tax documents from the client. I'm also starting to save e-mails to these folders, too. And I also print tax returns to .pdf and save in this folder.

I don't know that this is the best system, but I have too much in here to change it now.

Hope it helps.

[Maribeth]

We do the same. However, we use a different name that works quite well for us. The folder is called "Clients File Cabinet". Inside the file cabinet are "drawers" (folders) for each client. Inside each drawer is a section for each year.

The logic is easy to explain to temp employees.

Maribeth

[Margaret CPA in OH]

My structure for about 4-5 years is like Kea's. On my desktop is a folder CPA. Within CPA are 4 folders, Business Clients, Individual Clients, Former Clients Everything Else.

Within each Major folder is a folder for each client (business, individual, etc.) with the client name. Within each client folder is a folder Client Name TYXX. Within each Client Name TYXX are scanned copies of the client documents (Client Name TYXXdocs), pdf emails with date, and pdf copy of the client returns with and without password. The returns with password are those sent via email to the client for review and are their copies.

My Everything Else folder has IRS pubs, forms letters, scanned engagement letters and signed 8879's per year, and, well, everything else that I want to save. It all works pretty well for me.

I burn to disk the folder CPA annually so have all years, all clients, all documents in multiple years. I also utilize redundant backups daily. I thought about having each year in a separate folder but found that not as useful as having a folder for each client. Diff'rent strokes...

[Randall]

Under the overall file name of TAX FOLDERS, I set up folders labeled Business (1120s & 1065s, etc) and Individual (1040s including Sch C businesses). Under these folders, subfolders dividing the alphabet into 4 groups. Then Client name, then year. Under each year I have separate files for Fed return, State return, other worksheets & info produced by ATX, Client documents, my documents (such as notes, emails, etc).

I also have an INACTIVE file and move client files there if they don't return.

[michaelmars]

i have been doing it by year having a folder for each year with sub folders by client but after reading this i think, as the above suggested i will switch to client folders with the sub folder being the year.

Good post everyone

[Kea]

There is a significant advantage to having the client folder inside the year folder. It makes manual backups MUCH easier. Almost all your changes are being made in the 2010 folder & you know which clients you've just worked on.

At this point, my regular backups are made to an external drive with some program that just backs up the changes. I still occasionally manually back up to a thumb drive and it takes a long time.

[Randall]

I suppose there are pros and cons. But I like to be able to find the client easily. Since I've been scanning, I can receive a call from a client and with a few clicks while he's still asking his question, be looking at the returns & info and usually answer his question on the spot.

[Eli]

Hello to all, I want to get your opinion about organizing tax returns after I have scanned them. So far any 2010 return I have prepared I am no longer making a paper copy for my records, basically I scan the TP return + all docs used to prepare it (W-2's, 1098, 1099s, notes etc...) and I created a folder called Tax Return Files and I created sub-folders 2007, 2008, 2009, 2010 (2007 was the first year I was on my own), so right now I have only done a few returns and been putting them in the 2010. Now here is my dilemma, would be wise just to create a folder for each client and just put all years in the clients folder, I think that would be easier to search, because you know what client you are looking for instead of going by year, anyway please comment, trust I am not the most organized person in the world.

MAS

What program and scanner are being used out there for paperless filing?

[MAMalody]

I have a file on my hard drive titled Client Information. Under that are active clients by name. Under the name are a file with the name year, SSN and 4361. Under year are three files, Income Tax Return, Other and Work Papers. I also have a file for inactive clients in which I place all files by name which have not return for whatever reason.

[Randall]

I have a Fujitsu ScanSnap S500. For filing, I'm a one person office so I just use Windows Explorer and make up my own file folder names. For more than one person offices, I think you would need a program so the filing system is consistent and everyone can save and retrieve in the same place. I've heard File Cabinet is good but I think that cost $800 or more.