Probably one of the most common distractions to operating a business is the organization and maintenance of a filing system. Equally common is the loss of time and opportunity when you just can't find that file that was on your desk last night.

This column does not propose spending $5,000 establishing an organized filing system and related supplies to start and keep it going. It can easily cost you much less. Consider the file folder needs, the possible solutions found in color coding, strategic and functional placement of files, storage units and assignment of responsibility to maintain the system.

When considering the type of file folder to purchase, consider your company needs:

• File jackets are useful for those cases in which a specific folder is used, moved and accessed quite often. Ever notice how sheets of paper can be shuffled out of the folder from constant opening, closing and movement? The jacket format allows the storage of information without it sliding out either side of the folder.

• Accordion folders allow for massive storage of information in numerical or alphabetical order. These are ideal for special projects requiring constant, periodic use. Some information may become outdated and disposed of when the project is completed. The remaining data is stored in more permanent folders.

• Size of typical company documents should also be considered. To date, many contracts, real estate and legal documents still come in legal size. Ever notice how people will fold the bottom part of a legal size page so it will fit in a standard size folder? The folder becomes clumsily bulky. It pushes adjoining folders further in or out of alignment with other folders in the drawer. Avoid the fold and simply buy the size folder most accommodating to normal, flat storage of a document.

• Hanging folders can be an asset or a liability. Do not use hanging folders as a singular divider for categories of files where large volumes of data are likely to be stored. The hanging folder can carry only so much paper. In that case it would be better to use the hanging folder for a single file. On the other hand, it allows ease of movement from one file to the next in a smaller storage unit like the desk file drawer.

• Magazine file boxes make great organizers for those periodicals you retain for convenient reference or research.

Color-coding is a system format found in many larger companies. The two common color-coding formats are labels and folders. Small business can easily take advantage of the same organizational format for a small increase in the office supply budget. For example, standard manila folders can be purchased in boxes of 100 in a price range averaging between $5.00 to $6.00. For about $3.00 to $4.00 more you can get a 100-count of colored folders. You can establish a major category of files for each color. You can then subcategorize within a major category with different file label colors.

Another major consideration is where to store files. There are several types of filing cabinets from two to five drawers for standard and legal size folders. You may want to use larger units for company-wide files that will accumulate over time. For files stored in individual offices you may want to consider a two-drawer system that will also allow for the use of the top for office equipment or environmental decorations. An alternative is the filing unit on wheels. It doesn't hold as many files but does provide mobility. Many two-drawer units can be found holding up clocks, plants and computer printers in many small offices. There is also the option to have slide-out drawers or slide-up covers. The slide-up cover, though more expensive, is great where space is limited and an open file drawer can become a hazard to scraping you leg, tearing your clothes or falling on the floor. For all the expenses of improvement, if you intend to maximize organization of the filing system, the purchase of filing cabinets may represent your largest investment. You could pay anywhere between $30 to over $1,000 depending on size, options and colors. The alternative is to purchase used storage units.

Other matters of storage are purging and storage of discontinued files. One of the hardest things many people encounter is when to decide a file should simply be destroyed and discarded. That's an internal decision related to legal requirements, finance, marketing data and the like. But if you're not certain whether or not to purge then establish a permanent or temporary storage of those files then purchase the classic "bankers" boxes and store them in an area where there is little or no traffic. You can purchase a three-pack for as little as $4.00 or $5.00. Be certain to label the contents on the outside of each box.

Finally, each individual should be responsible for files stored in his or her office. But for ease of company-wide use I would encourage that all but personal files be color-coded and labeled in a manner consistent with the entire company. This way, when staffers are away others will be able to more readily locate the file if necessary. Filing systems requiring company wide access should be assigned to a single individual who is responsible for monitoring use and location of all files. You may want to establish a sign-in/sign-out system that allows for immediate location of a particular file should the need arise.

Filing systems are important to organization and productivity. Don't take the need lightly, whether you are a self-employed SOHO or a storefront with 20 employees. Cost is minimal, but the functional payback is significant and immediate.

© 2000, Carroll Stephen Windhaus