How do you create a year and month folder structure in a SharePoint document library?

Every year, I needed to create a folder structure in a report library that looks like this:

Next Year – 01 …… 12

Using PowerShell I’m able to create the parent folder (year), then create the subfolders (months).

*NOTE*
This can be executed using a scheduled task or using a workflow in SharePoint Designer with the help of the iLoveSharePoint add in.

if ((Get-PSSnapin "Microsoft.SharePoint.PowerShell" -ErrorAction SilentlyContinue) -eq $null) {
    Add-PSSnapin "Microsoft.SharePoint.PowerShell"
}

$spWeb = Get-SPWeb "http://sharepointed.com/sites/reports"
$spDocLib = $spWeb.Lists["TacoReports"]

$yearFolder = (get-date (Get-Date).AddYears(1) -UFormat "%Y")

$targetFolder = $spWeb.GetFolder($spDocLib.RootFolder.ServerRelativeUrl + "/$yearFolder")

if($targetFolder.Exists -eq $false)
{
    $spFolder = $spDocLib.AddItem("",[Microsoft.SharePoint.SPFileSystemObjectType]::Folder,$yearFolder)
	$spFolder.Update()

	$i = 1
	While ($i -le 12)
	{
		$subFolder= "{0:D2}" -f $i
		$spSubFolder = $spDocLib.AddItem($spFolder.Folder.ServerRelativeUrl,[Microsoft.SharePoint.SPFileSystemObjectType]::Folder,$subFolder)
		$spSubFolder.Update()

		$i++
	}
}

Get the current year and add one.
Check if the new folder already exist.
Create the year folder.
Then create the twelve subfolders (one for each month).