Why alphabetical filing system is important

The filing method under which files and folders are arranged in order of number is called numerical classification. All files and folders are given separate numbers.

It is an indirect method of classification of filing. In this filing alphabetical index is required. It includes name, address, phone number, subject and other information along with file number. In this filing method, records are classified according to their subject; letters and documents are classified and arranged in files and folders into subject or sub-subject wise. In this filing, subject must be arranged alphabetically. It is widely used in those cases where subject is more important than the name of the person or organization.

All documents relating to same subject are filed together in one file. In this method, files are grouped according to the geographical location of firm, organization or person. Under this method name of places are written in file and are arranged in drawer either in alphabetical or numerical order whichever is suitable for organization. It is used in multinational companies or those organizations whose business and branches are located din many places of the nation or the world.

In this method, files and folders of documents are arranged in an order of their date, day, and time. In an office, several letters and documents may be received and dispatched. They all are arranged according to time and date when they were received and dispatched.

Ask us in our Discussion Forum. Importance of Business Social responsibility of business. Unit 2: Evolution of Business Evolution of industry and Considerations before starting a Requisites of business success Business environment : concept Sole trading concern Concept of sole trading Characteristics of Sole Trading Advantages It is easy to understand and use It is flexible It is time-saving and very efficient in accessing files It does not require separate index Disadvantages Initial setup is time-consuming It is more expensive to maintain.

Stay in the Loop! Subscribe to get updates. Search for:. Such information has to be encoded and captured in some documents to serve as a permanent record of these transactions. In its simplest form, a good filing system has to have the basic information about the business: corporate documents, operating procedures, and the manner it conducts its business to achieve corporate results.

As business is dynamic, business transactions happen in such volumes that an organised system of arranging and storing them has to be in place, otherwise the business will not be able to move smoothly due to an information disarray or even overload.

So a filing system is needed, no matter how simple or small the business may be. Of course, the more complex the business, the more organised the filing system has to be. Personnel records, sales records, accounting records, and other similar files have to be created, sorted and arranged in a logical easy-to-understand methodology. A filing system can be a simple alphabetical arrangement of folders by subject or name titles.

If the transactions are numerous, the system can involve a multi-category classification with files arranged alphabetically or chronologically.