Paperwork and filing are most people’s least favorite activity, and while many of us (myself included) are inching ever closer to hitting the mark and reaching the paperless status … most are not there yet. That’s why I want to share six of my best tips for setting up a filing system that works!

System Setup

These first three tips focus on overall recommendations for developing your filing system.

1. Who’s going to use the system?

If you are going to be the person primarily accessing this system, then the person it has to make sense to is YOU. However, if anyone else might be interacting with your filing system (an assistant, a partner/spouse, co-workers), then you’ll want to make sure that the system you develop makes sense to them as well.

When does this matter most?

A) When you’re defining categories of files – Are your categories clear and obvious to the other people using the system so that they make it easier to find what’s needed.

B) Choosing file names – Is it Car, Auto, or Toyota? Getting on the same page with your fellows about language use will make it easier for everyone.

You might also want to think about what would happen if you were hit by bus… no, but really. I have a folder at the front of my system called “Emergency Instructions” that has a letter outlining where everything is just in case I were incapacitated, and my spouse knows to look there if necessary.

2. Color-code by Major Categories

Using different colored file folders means keeping more supplies on hand for filing, BUT it also makes finding what you want and filing new items away a LOT FASTER!! You don’t need to glance through or run your fingers over a huge swath of files. Rather you can go directly to the files of the appropriate color and generally find the right one in seconds.

For most filing systems I recommend 3-6 major categories (more than that gets too complex).

For a personal system your categories might include:

• Financial – bills, statements, investment accounts
• Medical – files for each family member, pets, etc.
• Household – Insurance accounts, car repair records, rental lease docs
• Interests – personal interest files
• School – files for different classes, teams, or activities for school

For a professional system here are some possible categories:

• Financial – business bills, statements, etc.
• Client flies – pretty obvious
• Associations – files for professional associations
• Business Planning – business plan, marketing projects, etc.
• Forms/Collateral – commonly used forms or collateral items that you send to clients
• Staff Files – hiring docs, contracts, reviews, etc.

Obviously, your categories may differ, but this gives you an idea of what I mean by major categories. Each one should be a collection of at least 5 files and preferably more (i.e. a major category with only 2 files doesn’t make much sense, so merge them together with another category and find a more general term to encompass all.)

3. Urgency Order vs. Alphabetical

Most people are astonished when I say that there’s only one thing in my entire house that’s alphabetical: my client files. After all, how else do you organize a set of proper names? But, I don’t alphabetize the rest of my files. That’s because I want the files I access the most right up front!

This method of organizing is often called urgency order. Basically, I put the major categories into the file drawer by how frequently I use them. Then, within each major category I create sub-categories which are also placed in urgency order and marked by the position of the plastic file tabs on the hanging file. This allows me to jump quickly to the sub-set of files that I’m looking for. It makes interacting with the system so much easier.

File Name Essentials

The last three tips are focused on helping you create good file names and make finding and filing things faster.

4. Think about Retrieval, not Storage

The last three tips are focused on helping you create good file names and make finding and filing things faster.

In other words, “Miscellaneous” is never a good name for a file. That’s a black hole into which things are dropped never to be found again. I’ve even been known to joke that to organizers “Misc” is definitely a four-letter word to be avoided.

What’s the topic, question, or issue that would inspire you to look for this piece of paper again? That’s what should be reflected on your file name.

5. Use the Goldilocks Principle – “Not too little, Not too big”… “Just right”

When you’re choosing names for your files you also want to look for words that hit the sweet spot of including a whole group of documents, but not a book’s worth. Here’s an example:

Too Small: Bank of America- Privacy Policy
“Just right”: Bank of America Checking
Too Big: Bank Accounts (if you have multiple)

With the “Just Right” version you can put all the statements and documents related to that checking account together, but keep them discreet from your other checking or savings accounts. I used what’s probably a pretty obvious one, but it illustrates the point clearly.

Anytime you’re inclined to make a folder for just one document, pause and ask “What are it’s friends?” Chunk up and find the term that includes more items for it to live with. Or, if you have a folder that’s huge and needs to get broken down, then ask “What are the sub-categories in here?”

6. Create Naming Conventions

Will your client files be “First Name Last Initial”? Or perhaps “Last Name, First Name”? When you’re setting up your permanent files you want to make sure there’s consistency because it will dramatically aid retrieval. Are you going to choose files like: Insurance- Health, Insurance- Car, Insurance- Homeowners? Or are you going to use the company names: Blue Cross, Geico, All-State?

Creating this consistency of naming with your files at the beginning will make retrieving items and filing new items a breeze.

Next Steps

I often like to say that filing has to be “falling-off-a-log” easy because no one loves to do it. So, hopefully these six tips have given you some ideas for how to update or create your filing system. I can say that writing this is inspiring me to do a weed and purge of my system to get it back into “tip-top” shape :).

If you found this valuable, then please share it with your friends via social media. Feel free to ask questions or offer your own great tips in the comments below!