Property records structure

[Burramys]

Property records may be sorted in several ways. Initial documents relate to the buy, and perhaps later to the sale. These are not used very much, and can be archived. Ongoing records include council rates, insurance, water and the like. PM records should in my view be kept separate. Finally, bank account statements should be filed together. When the current files get too thick they can be archived, ending on 30 June. This way the current files are relatively small. I keep most of my current files for two years and then archive them. It’s a balance between one financial year at a time and having too many folders. Once the figures are in the property or tax return software, there’s usually no need to look up the information

It has been suggested that all records should be by FY, with the bank statements filed in one property folder. I’m not keen as I like to have one file of bank statements and the minimum number of files for the rest. There is one bank account for al investments, property and shares, and having this account stored in one property file is confusing.

Comments on the above and how you keep your records would be valued.

 

[DaveM]

I have one ring bind folder for each property, divided into financial years. Each fy has plastic sleeves for rates, pm statements, r&m bills etc which is easy to track

 

[buzzlightyear]

From this FY, i retain no hard copies at all. For multiple properties it is a liberation All hardcopies after scanning are shredded.

The documents are organised 2013 Tax Return > Personal Tax Return > Properties > Eastment Street and the file is named by the relevant date, type of expense/income and property name eg 2013_02_04_Rent_Eastment St. Back up, by Time Machine.

I also have non property investments and SMSF investments in different folders as required.

I use Adobe Writer to reduce file size of pdf'd scanned images. In parallel, I place into a simple excel spredahseet the record of the expense/income, with property code, expense type, cash or non-cash outlay, amount amongst others, with pivot tables. I have for example this year, placed all past and future transactions (estimating expenses and costs based on previous amounts, highlighted and flaged in another column), which then allows me to track overall year end position as and when actual amounts are validated.

 

[datto]

Use one manilla folder per property per financial year. Keep bank statements separate. Keep personal tax documents separate. If keen, use excel spreadsheet to monitor income and expenditure. This is very handy at tax time.

 

[austini]

In general any expense/income event gets recorded immediately in Quicken Personal Plus (amazing tool when you know how to use it well) and paperwork filed. All recurring events are setup as scheduled transactions.

Many files are collapsible so file thichness is only as thick as the paper inside unlike Lever arch files. Use those where you can access any part of file without removing paperwork however. Live in apartment so try to minimise space required by files.

Property:
Keep one file per property divided into logical sections such as purchase, insurance, rental statements, repairs, utilities etc. Periodically get rid of paperwork such as rates, rental statements > 5/10 years old (tax) but keep essential stuff such as purchase doco. Create new file when current file gets full and archive old one. Rarely ever need to refer to files as all data is in Quicken.

Tax Returns:
Separate file for each fin year divided by entity/major category. Archived after each tax return complete.

Bank statements:
Kept in folder divided into sections by account for those with less activity (received 6 monthly). Keep separate files for accounts with frequent activity (received monthly).

Shares:
Paperwork file in folder divided alphabetically by share/entity. Archive when full and create new one. Very little paperwork with shares if longer term holder.

SMSF:
File divided into relevant sections. Best thing I ever did is when any paperwork required for later audit arrives a copy is taken and put in tax file and other gets filed in general folder. So come tax time all audit paperwork is ready to go.

But basically I would be lost without Quicken. Come tax time there is very little to do other than print reports (takes a few minutes all up for personal, trust and SMSF). Tax time is now a joy rather than a nightmare when it comes to records and paperwork. Keeps the accountant happy and costs down as well

 

[Tracey295]

Excellent discussion, I have been thinking about this and was not sure if I should go paperless or not. To start with at the moment I have one manilla folder for each property but a folder system I think will be the way I go for now until I have the time to go paperless.

I think a system like I keep for my personal budgeting will work fine and seperating them into relevant information (e.g. rates, insurance, rental statements etc) will help to keep everything in order.

 

[datto]

Easiest way is get a shoebox(s) . Place all documents in box(s) as they arrive. Shake and hand to accountant at tax time lol lol

 

[tobe]

all letters are opened, ones requiring no action are placed in intray on top of cabinet. Around August/sept, as pile of paperwork starts to woble, go thru intray with accountants checklist, filing out figures. sort into estate agent statements, bank statements, loan statements, share statements, tithing etc, and pop into cabinet, under that years FY, hopefully never to be seen again. I could seperate them out further into seperate properties, etc, but life is too short.

 

[Burramys]

Easiest way is get a shoebox(s) . Place all documents in box(s) as they arrive. Shake and hand to accountant at tax time lol lol

Do you shred before filing? I use Quicken for the figures and a spreadsheet in the same form at the tax return. It's rare that any supporting documentation needs to be provided to my accountant. When I get the return from my accountant I make changes to the spreadsheet for the current FY to meet the current requirements. However, it’s mostly tinkering with the edges. Shares are put on one tab.

I think it come down to what works. I've found that filing two years at a time is a balance between sorting by FY and having too many files. Ina nay case, most of the current file is rarely accessed after it's been entered on the computer.

 

[alexlee]

There are two objectives for any filing system:

1) You can easily find whatever you're looking for.

2) Other people who don't know your system can find a document reasonably easily. (In case you drop dead and people have to go through your files).

Whatever system you use, if you can achieve the above, it's a good system.

 

[Terry_w]

Keep all records for ever because you never know when a property may become an investment or be otherwise taxable down the track.

Also make it easier for the estate after your death when you won't be around to assist in finding those receipts.

 

[wylie]

Last year we were at the tax accountant when a man came in with a shoe box. I had to stop myself from chuckling. I had never actually "seen" anybody go to the accountant with a shoebox. (Maybe it was his idea of a joke.)

 

[datto]

Dont laugh. Shoe box filing systems are quite popular. Accountants rub their hands in glee when they arrive (extra $$ lol)

 

[Burramys]

Suppose an invoice arrives in mid-June and is due for payment in early July. Would this invoice be best filed in the month and FY it was received or the month and FY in which it was paid?

A book-keeper advised that paid invoices should have a line drawn though them. My preference is to write when the invoice was paid, sometimes how much (there may be a discount for early payment), and the account the payment came from. How do people record payments on invoices, if at all, and what do you think about drawing a line though the invoice to denote that it has been paid?

 

[Terry_w]

Suppose an invoice arrives in mid-June and is due for payment in early July. Would this invoice be best filed in the month and FY it was received or the month and FY in which it was paid?

A book-keeper advised that paid invoices should have a line drawn though them. My preference is to write when the invoice was paid, sometimes how much (there may be a discount for early payment), and the account the payment came from. How do people record payments on invoices, if at all, and what do you think about drawing a line though the invoice to denote that it has been paid?

How many invoices do you get? I just make a spreadsheet to record and pay them when they are due.

 

[alexlee]

A book-keeper advised that paid invoices should have a line drawn though them. My preference is to write when the invoice was paid, sometimes how much (there may be a discount for early payment), and the account the payment came from. How do people record payments on invoices, if at all, and what do you think about drawing a line though the invoice to denote that it has been paid?

That only works if the person looking at the file knows what the line means. It'd be clearer to actually write "paid" on the invoice, or attach the bpay receipt to the invoice.

 

[Burramys]

There are the usual council and insurance (annual), water (quarterly), and owners corpse threats (too often, but usually quarterly), and perhaps a few more. There are not many. Entities that I trust are direct debit, with payment of others usually by the due date, sometimes not.

For example, a water licensee has got into major knots over invoicing, and this will not be paid until they can explain how they arrived at the figure, double the normal amount and missing meter readings. A phone company abandoned demands when I sought details. An OC was taken to court. I had the receipt and they said that I had not paid. Idiots. They lost. Another OC wanted me to pay for their court time. They lost this one.