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iii. Legal Formality

There may be a legal obligation to preserve some of the official records for a certain
time in the future. In such a case, filing fulfils the legal formality by presenting the records
for the future. Such records may be agreements enforceable by law, treaties, audited
books of A/c in case of a public company, etc.

iv Builds Business Image and Goodwill
A good filing system helps an organization to build up and boost its image and
goodwill in the society. It enables the society to make positive attitude towards the
organization, which results a good social relation. A good social relation leads an
organization towards success through their help and cooperation.
v. Increases Efficiency
A good filing system helps in providing the records whenever needed without delay
and difficulty. It facilitates the smooth performance and prompt replies of inquiries, etc.
In this way, filing serves in increasing office efficiency by means of regular supply of the
necessary information to the various units of the organization in time.
vi. Providing Information
Filing collects and preserves records and documents. It provides information to
the shareholders, government authorities, debtors, creditors, house owner and others. It
supplies reports of achievement, activities and information at the time of need with the
help of collected and preserved documents.
Vii. Collection of Documents

The main objectives or importance of filing is to collect documents from difference
sources. They cannot be preserved without their collection. Hence, collection of letters
and documents can be regarded as the objective or importance of filing.

Points to Remember

i. Safeguarding records ii. Providing Proof for the Future iii. Legal formality
iv. Builds business image and goodwill v. Increases efficiency vii. Providing information
vii. Collection of Documents

3. Classifications / Methods of Filing
Classification or method of filing refers to a particular way of arranging the records and
documents in a file/folder or cabinet. Files can be arranged in order of alphabets, numbers,
places, subjects and dates. Some important methods of filing are briefly discussed below.
Methods of Filing

Alphabetical Filing Numerical Filing Geographical Filing Subject Filing
Method Method Method Method

22 Aakar’s Office Practice and Accountancy - 10 Filing 23