Unit 5 - Importance of Filing

The importance of Filing Systems

A filing system is an indispensable tool in any business, especially when it comes to the core organization processes. It is very easy to understand why this fact is true – after all, any type of business resides on a multitude of listings, billings, and other documents which cover practically every conceivable segment of business proceedings. Because of this, it is exceedingly important to put in place a filing system that could handle these constant streams of crucial information in an accurate manner. This is achieved by firstly choosing the most optimal filing methodology that will be set in place.

Most filing systems utilize the concept of categories, like, for example, collecting and filing all documents that include data on payable accounts. The second most used systems are based on the alphabetical order of filing while many businesses are starting to employ systems that combine the two previously mentioned approaches. But, no matter what methodology is chosen, a filing system needs to be able to support the business’s management style and also be accessible to all who are in constant contact with it. This way, the system’s usability can stay optimal, even when workloads become bigger.

When it comes to the difference between filing systems used by big corporations and those used by small business, the key element is the margin of error. A big filing system is both scalable and heavily interconnected, which makes any error instantly present in many other elements of the system. This way, a problem can easily reverberate in the entire filing department without people even realizing it. Because of this butterfly effect, a small error in one segment of the system could cause a huge disruption in other parts very quickly.

Small businesses, on the other hand, have the privilege of more maneuvering space and less interconnectivity, which makes even bigger errors easily correctable before they produce a huge calamity. This is the reason why big companies have many safety checks in their filing departments.

But, in both cases, having an effective filing system is a necessity for any business which desires to grow and prosper.