This easy filing system works for me!
If you have a home-based business, I suggest you spend $6 at Walmart, and buy yourself a portable accordion file (has a handle on it). Office supply stores charge double that price.
You can set it aside anywhere you want in the house, and don't have to keep folders in a cabinet. Open up the folders and tab them to go left or right, back and forth so that file labels are easily seen when in the accordion file.
Look at the form T2125 and make up file folders for each category that applies to your business. I am a visual person, so using different coloured folders for each category is helpful to me (ie one colour for business expenses, another colour for auto expenses, and another for business-use-of-home expenses).
Take a half hour each month, and tally the receipts you have, by category. Record these by category on a spreadsheet. Remember to note who you met with, purpose of the meeting, where you went, the date and distance for mileage log etc.
I hope this is helpful!
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