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v. Since the documents of a person/firm or subject are kept in chronological order in
separate files/folders, they can be quickly found.
vi. It occupies less space as the files are kept one upon another in a pile and can be kept
on the table.
Disadvantages
i. This system is more time consuming for punching the documents and keeping them
by fastening and taking out by opening the hinges or arches.
ii. It is difficult to arrange a large number of documents in the file folder as they are
kept in a pile and their position cannot be seen at a time.
iii. While punching the documents, the words or figures may also be punched, this may
cause loss of spellings and meanings.
iv. There’s not enough security of the documents since they are not kept in drawers and
cabinet with lock system.
v. It is not suitable for large scale organization because it has less expansion or scope.

ii. Vertical Filing System
The way and style of keeping files in standing or
upright position in support of each other is vertical filing.
This is the most modern type or system of filing, which is
the remedy for the limitations of other systems of filing. It
is suitable for those offices, which have increasing volume
of papers/ documents. Since folders are kept in the vertical
position, there is no need of punching and tying papers.
The folders are placed in the drawers or cabinets in an
alphabetic, numeric or subject wise order along with the
guide cards. A simple example of vertical folder is as given
below. Vertical filing

Key Point The way or style of keeping files / folders in drawer/cabinet in standing or
upright position in the support of each other is known as vertical filing.

Advantages
i. It facilitates ready reference as the caption or heading of each folder is visible from
the tab or extended edge of the back sheet.
ii. Since papers are kept loose, it is prompt to keep and take out them without disturbing
their order.
iii. It is suitable for all types of classification such as alphabetic, numeric, geographic,
subject wise, etc.
iv. It also provides greater safety to the documents since they are well protected by
folder and kept safely in drawers.
v. It is flexible enough because it has enough ground for expansion and contraction.

32 Aakar’s Office Practice and Accountancy - 10 Filing 33