Types of Financial Documents You Should Keep Track of

As we navigate through life, we all come across a variety of financial documents that we need to keep track of. From receipts to bank statements, these documents can be overwhelming to handle at times. However, keeping track of them is crucial for staying financially organized and ensuring accuracy in budgeting and tax filings. In this article, we’ll explore the types of financial documents you should keep track of and the importance of doing so.

1. Bank Statements:

Bank statements are documents provided by your financial institution that include all the transactions and balances in your account over a given period. They are the most critical financial documents you should keep track of because they help you understand your spending habits and ensure that there are no unauthorized transactions or errors in your account. Regularly reviewing your bank statements allows you to identify any errors or fraudulent activities and report them to your financial institution promptly.

2. Investment Statements:

Investment statements are records of your investment accounts, including stocks, bonds, mutual funds, and other investment products. They show the performance of your investments, including the amount invested, current value, and return on investment (ROI). Keeping track of your investment statements helps you monitor your portfolio's performance, make informed investment decisions, and review your asset allocations.

3. Tax Returns:

Tax returns are records of your tax payments, deductions, and credits during a given tax year. It is vital to keep track of your tax returns for at least seven years as they ensure that you can access the relevant information when needed, such as when you file your next tax return. Additionally, keeping your tax returns makes it easier to complete future tax returns and claim any deductions, credits, or refunds owed to you.

4. Insurance Policies:

Insurance policies are contracts between an insurance company and the policyholder, detailing the coverage provided by the policy, including deductibles, premiums, and exclusions. Keeping track of insurance policies helps you understand your coverage, review your premiums, and ensure that you have the coverage you need in case of a loss. Additionally, reviewing your insurance policies periodically allows you to make necessary adjustments to your coverage as your circumstances change.

5. Retirement Account Statements:

Retirement account statements are records of your retirement account balances, contributions, and withdrawals. They show how your retirement savings are growing and provide you with a clear understanding of the income you can expect during retirement. Reviewing your retirement account statements periodically can help you make informed decisions about your retirement savings, such as adjusting your contributions or investment allocations.

6. Loan Documents:

Loan documents are contracts between a lender and a borrower, detailing the terms and conditions of the loan. They include the loan amount, interest rate, repayment terms, and any applicable fees. Keeping track of loan documents helps you understand the terms of the loan and make payments on time. Additionally, reviewing loan documents periodically allows you to negotiate the terms of the loan if necessary.

7. Receipts:

Receipts are proof of purchases or expenses and help you keep track of your spending. Keeping receipts allows you to verify your transactions, identify any discrepancies, and track any deductible expenses when filing taxes.
In conclusion, keeping track of financial documents is essential for financial organization and planning. By understanding the importance of each financial document and regularly reviewing them, you can identify any errors, fraudulent activities, and ensure that you are making informed financial decisions. While it may seem overwhelming at first, establishing a system for organizing your financial documents can save you time and money in the long run.

Check out HelpRange

Check out our product HelpRange. It is designed to securely store (GDPR compliant), share, protect, sell, e-sign and analyze usage of your documents.