THE GENERAL PROCESS

Files (i.e., collected papers, photos, blueprints, notes, etc.) can be stored according to three main categories: archive, active, and “hot”. Start with the Three Big Questions we've been discussing. Then, keeping file storage simple is a matter of purging extraneous documents, sorting and then keeping remaining items properly labeled.

Label hanging folders, folder groups or drawers with broad, general categories (“clients”, “vendors”, “regional sales territories”, etc.), while manila folders should be labeled with the specific subcategories (client/vendor names, last name first, account numbers, region designations, etc.).

Avoid the fuzzy non-label of “miscellaneous”. If everything has an assigned name, and each named item has a corresponding “home”, your system will run much more smoothly. Without an accurate and predictable nomenclature, too much time might be wasted searching for a file in the wrong place (especially if you try to delegate and the file might stay in the system longer than is legally required or allowed.

Think of the whole process like the life cycle of a child. A baby is born (a file is created), named (labeled) and a nursery is lovingly created so the child and his or her toys, clothing and accessories (like a hanging folder’s associated files) have an assigned space. As the child grows, the items in that space may change (like the individual papers in a file may come and go as some expire and are replaced), and eventually the child will reach an age where he moves away to college (as a closed file may be sent to the archives).

RECORDS RETENTION

It is vital to consider and set office-wide record retention policies and follow a schedule so that the entire staff knows what should be stored, in what manner and for how long. No matter what the size of your company, it’s important to have a records retention policy in place for both legal and practical reasons.

From the legal perspective, a records retention schedule helps ensure that you are complying with all US Federal and state, and, if applicable, international laws, and helps support the validity of your responses to litigation. For example, the actions of publicly-traded companies and accounting firms with regard to maintenance of records is now governed by the Sarbanes-Oxley Act. (Sure, your company may be small now, but you have big dreams, don't you?) The Fair and Accurate Credit Transaction Act specifies how a company must destroy consumer information (like personal data and credit card information), while HIPAA regulations specify who may have access to and/or disclose patient records information.

The are also practical operational reasons why your office needs a records retention schedule. A schedule ensures that documents are systematically archived or destroyed according to an agreed-upon plan. This helps ensure that records from the same period are kept for the same amount of time, and are systematically destroyed at the right time in the right manner. Records maintained without any system are likely to include outdated information and data and old versions of procedures that have since been revised, leaving the door open for costly mistakes and reduced productivity.

ARCHIVE FILES

Archive files are documents that must be retained according to need, regulation or policy, but will not be retrieved often. For example, if the “Smith Warehouse” project is complete, the bill is paid and the file is closed, all of the Smith Warehouse documents can go into the archive files. If you haven’t used a file in the past six months and don't anticipate a cyclical return, it’s a good candidate for the archives.

Archival storage can generally be kept in banker’s boxes or file cabinets labeled with general file categories and dates referenced; boxes should be labeled on the sides rather than lids so that the contents will be visible from below even when kept on high storage shelves. Use shelves instead of piling boxes on top of one another, as it is almost impossible to access documents on the lower levels of a tower of boxes without showering yourself in an earthquake of papers. Ouch!

In a standard small office, environmental controls usually won't be of great concern. Unless your archives are being kept in a room prone to flooding (near an exterior door or poorly protected water pipes), standard legal- and/or letter-sized banker’s boxes should suffice. If, however, you have a home office where archive space is at a premium, you might be tempted to store your records in an attic or basement where temperature, moisture and ravenous “critters” are not as stringently controlled. In this case, in lieu of cardboard banker’s boxes, you may wish to consider plastic hanging-file drawers such as those manufactured by Rubbermaid. These are heavy-duty and resistant to environmental pitfalls.

As your business expands, archive files should be moved away from the center of activity to prevent them from taking up space better served by active files. Plan for expansion by leaving at least 15 to 20% of storage space available for newly archived items.

All items stored in the archives should be listed on a master archive file index, indicating file name and location. Keep one copy of the index wherever archive files are stored--a printout in a plastic sheet protector should work, or copy the spreadsheet to a flash drive if you'll have a computer handy. If your business is large enough, the index may be centrally located on the company’s file server, accessible through secure web pathways.

A file index is equally useful for home offices, as it eliminates time wasted searching for older documents. You can either create your own master list, or if you love all things technical, check out the Paper Tiger filing system for maintaining active and archived files.

ACTIVE FILES

Active files are those containing current financial records, active client files, and any project that is ongoing. The main difference between archive and active files is frequency of access.

Active files should be easily accessible in file cabinets or desk file drawers, and preferably, you should not have to get out of your chair to retrieve them. Remember that prime real estate concept we've discussed.

Optimally, you should put away an active file as soon as you are done working with it for the day to prevent multiple open file folders from nesting inside one another. You can place a ‘To File’ tray atop the file cabinet for interim storage until you can return documents to active file storage, but it often takes a great deal more willpower to file a stack of folders than just one. Consider how much easier it is to wash out one glass or bowl immediately after using it than to dread washing a sink full of dishes!

HOT FILES

Hot files are a sub-set of active files related to projects or tasks you are handling multiple times each day. At any given time, there may be half a dozen such files such that it would be inconvenient to keep returning them to active file storage.

With hot files, it is often best to “store” them in a desktop vertical file sorter or “riser” when not in use. This way, the labeled files are visible and quickly accessed, but are unlikely to be buried or mixed up with other files. Just be honest with yourself and take a moment to review at the end of the day; if you've gone two business days without using a hot file, send it back to the file cabinet.

File storage is a big topic (one that fills a professional organizer's heart with delight and glee!!!), so I'm sure we'll be returning to discuss nuances in the new year.

--
Julie Bestry, Certified Professional Organizer®
Best Results Organizing
"Don't apologize. Organize!"
organize@juliebestry.com
Visit http://www.juliebestry.com to save time and money, reduce stress and increase your productivity

Private Reply to Julie Bestry