My current (experimental, i.e. I just started it this year) system:

1) A set of folders for the monthly statements of each utility (water, gas, electric, phone, etc.). I accumulate the statements only for the current year, and discard them when a new year begins.

2) A set of folders for accumulating the current month's receipts for each bank & credit card account. At the end of the month these are dumped into...

3) A second, matching, temporary set of folders for last month's bank and credit card receipts; this is where I store the receipts until the corresponding statement arrives; after balancing the statements, I staple receipts and statement together and file them in...

4) A set of folders for the accumulated year's statements from banks, credit cards, medical practioners (doctor, dentist, optometrist, etc.), prescriptions, insurance, church, etc. These I'll need at tax time next year.

It's not a simple system, and because it's still a new system I sometimes get confused as to where I should file something, but I expect (and hope) that when I do my taxes next year, all the pertinent paperwork will be presorted and categorized.

Here's some real examples:

Set 1: a folder that holds my long distance carrier statements for 2006; these will be discarded come 2007

Set 2: a folder that holds this month's receipts for the debit card on my checking account; at the end of the month, the receipts will be moved to the "last month's receipts" folder

Set 3: a folder that temporarily holds last month's receipts for the debit card on my checking account, waiting for my bank statement for last month's activity; when the statement arrives, I balance it, staple the receipts to it, and file it in the 2006 folder for the bank

Set 4: a folder that holds completed (balanced) statements from my bank for 2006; next year I'll use these when preparing my 2006 taxes (and start a new folder to hold the 2007 bank statements and receipts)

Could there be a simpler way to handle all these? I'm sure there must be, and will be very interested in hearing how other people do it.

Mike