Unpaid and Paid Creditors/Bills
Inside the unpaid bills put a-z alphabetical dividers so that the bills can be filed in alphabetical order which makes them easy to find, especially if you have a high volume of bills.
In the paid bills file put Jan-Dec monthly dividers.
When the bills are paid, pull them out of the unpaid bills, keep them in alphabetical order but this time file them into the relevant month in the paid bills file.
What do I mean by relevant month? If you entered a bill into your bookkeeping program at the date that is on the bill then file it into the paid bills file at month/date of the bill.
This all depends on whether or not your bookkeeping program has a creditors/bills option. If you are only keeping a cash book, then your bill is entered into the bookkeeping program at the date you paid the bill, so you will file it into the month of the payment.
Another method is to simply file all the bills away into one file, whether paid or unpaid, and keep track of the ones you haven’t paid using a spreadsheet.
Business filing system great tip - put the latest documents near the top. If your financial year runs from January to December you would put all your months back to front, so January is at the bottom and December at the top.
This is so that as the year goes on you always have the latest document at the top and you are not having to move months of work over the prongs to get to the latest ones near the bottom.