Key takeaways
- One client, one year, one folder is the base unit.
- Source documents and workpapers belong in separate subfolders.
- A file name should identify the client, the year, the document and the period.
- Access should follow the role, not the person who happened to receive the file.
- A handoff is easier when the folder explains itself without a call.
Start with one client and one year
Create a folder for the client, then a folder for the year or period inside it. Keep the current year at the top and archive the prior years without deleting them. A client with several entities gets a folder per entity inside the client folder.
The year folder is the unit the firm closes, files and reviews. If a document belongs to two years, put it in the year it affects and link to it from the other year's notes.
Separate source, workpaper and final
Inside the year folder, keep three areas: source documents from the client, the firm's workpapers and the final deliverables. The source folder is read-only for most staff. The workpaper folder holds the reconciliations, the trial balance and the review notes. The final folder holds the signed return, the financial statements and the client copy.
This separation answers the first question in a review: is this the client's document or the firm's work? Mixing them makes it hard to tell what was received and what was prepared.
Use a predictable file name
A file name should include the client or entity, the year, the document type and the period. For example, a bank statement for March might be named with the client, the year, the bank and the month. Avoid names like scan001, final final or a staff member's initials.
When a document arrives, rename it once at intake. A consistent name makes search work and prevents the same statement from being uploaded twice under two names.
Control access by role
Give staff access to the clients they serve, not to the whole drive. Use the smallest permission that lets them do the work, and remove access when a person leaves a client team or the firm.
Clients should see their own folder, not another client's. If the firm uses a portal, check the sharing settings on every new folder instead of copying an old folder with the old permissions.
Keep a document index
A simple index at the top of the year folder lists what was requested, what arrived, the date and the staff member who reviewed it. The index can be a spreadsheet or a report from the collection tool. It is the fastest way to answer a client question and to prepare for a handoff.
At the end of the engagement, the index becomes the record of what the firm received. If a document is missing, the index shows it was requested and not received.
Close the year and hand off
At year end, remove duplicate files, rename anything that slipped through and move the year folder to the archive. Keep the retention period in the firm's written policy and apply it consistently.
When a client leaves or a staff member takes over, the folder should explain itself: the index, the source documents, the workpapers and the final deliverables. A handoff that needs a call to understand the folder is a folder that will be rebuilt later.