FILING SYSTEMS

1. ALPHABETICAL
Filing your documents alphabetically is a simple and time-proven system. The name of each
file folder corresponds to the name of each document. Many businesses use hanging file
folders with tabs or sturdy preprinted file drawer dividers to separate the folders under each
alphabetical heading. A key drawback of an alphabetical system is that it is often necessary
to have an index to keep track of a large number of documents.
Advantages:
Its advantages include the fact that it gives direct reference and also groups common and/or
family names together. It enables files to be read and accessed quickly and is also readily
expandable.
Disadvantages:
By the same token, common names do not occur evenly throughout the alphabet. There are,
for instance, more names beginning with S than with Q. As an alpha file grows - say to
hundreds or thousands of names - identification and locations become more cumbersome.
Items within a named file require some additional system of classification - letters to an
account client may need to be numbered or filed chronologically, making cross-referencing
laborious.

2. CATEGORY
Use your business divisions and functions as the foundation for a category or topical filing
system. Consider starting with four or five main functions, such as personnel, finance,
administration, marketing and customer data. With a categorical system, you can have subtopics such as current personnel and inactive personnel. You might subdivide your finance
category into expenses and income, or receivables and payments.

3. DATE
Filing your documents by date lets you find information generated at a specific time. Yearly
file sections are the foundation of a date-based filing system, and each month of the year is
a subsection of this system. With this method, businesses commonly keep the freshest files
in the front of both the yearly section and the monthly sections. When you use this system,
you need some way to keep track of which documents correspond to what month and year.

4. NUMERICAL
Businesses that mainly generate numbered documents, such as invoices, often create a
numerical filing system that stores files using the assigned document numbers. With this file

system, a crucial element is labeling each file cabinet drawer with the sequence of numbers
it contains. This system might also require an index for quick access.
Advantages:
The greatest benefit of a numeric system is speed of filing and finding. It is twice as fast to
file and find by number than by name. Even though a numeric file requires a cross index, it
can increase production time by 40 to 50%.
Numeric systems provide both a positive identification of the record and a degree of
confidentiality. This system is capable of infinite expansions and can cope with a very large
number of sub-sections, sub-divisions and diverging branches of data.
Disadvantages:
In ORDER for the numbers to convey readily what they mean, it is necessary for an index to
be created, eg:
600 Technology
650 Business Practices
658 Management etc
This system is therefore more time-consuming to use than one in which each file is given an
instantly identifiable name.

5. COMBINATIONS
The common drawbacks of simple alphabetical, chronological or categorical filing system
might hamper retrieval of your documents. To achieve the desired efficiency, businesses
often combine elements of two or more filing systems. You can improve a categorical system
by creating alphabetical or date subsections. Subtopics or categories that fit the main
functions of your business might improve the efficiency of a chronological filing system.

6. CONSIDERATIONS
Regardless of which system you implement, consider creating an archived documents area
to separate current and frequently used documents from those you are retaining for
reference. For business security and disaster recovery, you might also want to keep the
originals of important legal, contract and tax documents in a secure offsite storage facility.
To facilitate quick reference, scan these documents. Restrict unauthorized access to your
digital versions with passwords and encryption.