How to Organize Filing Cabinets

By designating an area in your home or office for all of your paperwork, you save time, money (by not misplacing bills) and cut clutter. The best part is that once you sort through your paperwork, organizing your filing cabinet is a breeze.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Locking fire-proof box
• Hanging files
• File labels
• Paperwork
• Pen

1. Select a file cabinet. If you pick a filing cabinet that doesn’t match, you’ll be tempted to place it in a storage closet where it will be out of sight and out of mind. You’ll get more use out of your file cabinet if you select a cabinet that complements your home or office décor. Choose a cabinet that is sturdy enough to hold all of your paperwork and has enough drawers to not only contain your current paperwork but the paperwork you’ll gain over the course of a year. Make sure the cabinet includes a locking mechanism.

2. Organize paperwork. Your paperwork should be organized according to subject matter and filed by name, not alphabetical listing. Paperwork older than one year should be stored in boxes by month and year. Paperwork for the current year should be filed in a filing cabinet.

3. Insert hanging folders. Give each file label an accurate name. Avoid labeling your files with the letter of the alphabet, numerals or dates. It only makes searching for important information difficult. For instance, Allstate Auto Insurance should be filed under the name Allstate, not under the letter A for Allstate or the letter I for insurance. Product warranties and maintenance contracts, however, can be grouped together under the label Maintenance Contracts.

4. Create action files. Action files hold paperwork that needs attention throughout the week or month. They contain material that helps you run your home or business more smoothly. These files should be placed on the upper drawer of your filing cabinet for easy access. Labels for your action files would consist of monthly budget sheet, invoices to be paid, invoices for income due, insurance claims, and quite possibly a monthly "to do" file filled with tasks that must be dealt with during the current month.

5. Create storage files. Storage files hold paperwork that you need to get to on a weekly or monthly basis but don’t need to do anything with once you’ve filed the paperwork. These files should be placed in the second, or bottom, drawer of your filing cabinet. Storage files consist of bank statements (once reconciled), car repair receipts and paid credit card statements, doctor’s bills, dental bills and chiropractor bills.

6. Create archival files. Archival files hold paperwork that you need to see once every quarter or annually. These files should be placed in a separate filing cabinet. The top drawer can be for the current year, with the bottom drawer for the previous year. Then as the years progress, the “previous” year files can then be moved to a box and placed in your storage room. Archival files consist of tax returns, credit reports, receipts for big-ticket items, employee benefits papers, charitable contributions and statements for your IRA, 401(k) and stocks.

7. Create fire-proof files. Fire-proof files hold paperwork you want to take should the house catch on fire. These files should be placed in a fire-proof box, under lock and key, and consist of life insurance records, social security cards, birth certificates, titles to your vehicles, certificate of authenticities, marriage licenses, deeds, degrees, living will and transcripts.

Tips & Warnings

• Avoid labeling your files miscellaneous. Not only does it not help you in finding important documents, it’s easy to get into the habit of putting paperwork you don’t want to deal with into this file.

Resources

• Filing Cabinets
• Organize It

[Laurpud]

on 7/22/2009 Thank you, this article was more detaled than most & I love the tip about picking a cabinette to match your decor & why!