Page 28 - Account 10

Advantages
i. This method is very easy to understand and use. Files are arranged in the order of
the names of the places and different drawers and cabinets are used to keep the files
of a definite place.
ii. This method is advantageous, specially for those firms, which have correspondence
with a large number of places in home country and foreign countries and which
have several branches.
iii. Both alphabetical and numerical methods can be used under the geographical
classification.
iv. It is very easy to find out the files when names of the places are known.
v. It saves time for filing and obtaining documents due to the provision of alphabetic
geographic guides.
Disadvantages
i. There is a trouble in making various types of guide cards and indices.
ii. It is expensive because it is a huge system and thus, cannot be used by small
organizations.
iii. It is difficult to make the order for arrangement of files without appropriate
knowledge of geographical location of places, and thus, there is more like for the
errors to occur.
iv. The names of the places of the correspondents are written in the drawers and folders,
so secrecy cannot be maintained.
v. It takes more time to find the files and documents.
vi. Trained and qualified manpower is required.
D. Subject Filing Method
The method of arranging and storing records/
documents according to their subjects is known as
subject filing method. This method of filing is useful
where subject is more important than the name of the
person or firm. Thus, in this filing, all documents related
with a subject are brought together in one file even
though they may have come from different sources. Subject filing method
In a government office, subject may be salary, labour
budget, furniture, stationery, machineries, contingencies, etc. In trading office, the subject
may be salary, rent, clothes metallic materials, oil, sport materials, and miscellaneous.
If the number of records /documents/correspondence subject file of a certain subject is
too large, sub-divisions are also made. For example, the records of clothes may be sub-
divided into polyster, cotton, wool, nylon, etc. For the identification of a particular subject,
guide cards are also place in drawers. The subjects are alphabetically classified. Primary
guide, subject guide, subject or individual file, miscellaneous files, etc. are used under this
method.

Key Point The process of arranging files and folders according to the subject of
correspondence in alphabetical order is known as subject filing method.

28 Aakar’s Office Practice and Accountancy - 10 Filing 29