I'm quite new to bookkeeping (although I did AAT to intermediate level to learn some theory) & have took over from someone who'd been doing it for around 30 years. I'm just trying to stick to her systems as much as I can until I'm experienced enough to change it to suit. 1 of the things the old bookkeeper did was change the colour of our purchase & sales invoices every financial year, is there any practical use in doing this or would it just have been because she liked looking at different colours from time to time?
Our purchase invoices are filed in number order based on when they're put on sage. I've mixed some new tax year ones with a load of previous, if I leave them as they are is this likely to cause an issue somewhere down the line?
Personal choice really, it would make it easier to see if something was in the wrong folder, but its up to you. I do something similar with folders! lol
A lot of people work with colour coded paperwork I change the colour of the payslips each new tax year and have different coloured folders for each new financial year as well.
So if I decide to just use 2 sets of folders (I'll keep purchase invoices & sales invoices different) I won't be messing about 5 years from now & be fuming with myself for not sticking to her old system?
It's entirely what works for you really. Just as long as they are easy to find if someone asks you..."can you find such and such invoice for me". I would also be inclined to file invoices for different financial years (that is the Company's financial year) in separate folders rather than mixing them up, just in case there should ever be an HMRC inspection and they need to see invoices for certain years.
I change the colour of the payslips each new tax year and have different coloured folders for each new financial year as well.
