Page 34 - Account 10

Disadvantages
i. There is chance for the papers to come out, or be dropped or misplaced, while
keeping and taking out the documents.
ii. It is costlier because it requires various types of tools and equipment like special
drawers, cabinets, folders and separate index i.e. the list of files and trained personnel.
So, it is not suitable for small and traditional types of organizations.
iii. It takes more time for the preparation of index and guide cards.
iv. It occupies more space because under this system big and heavy filing cabinets are
used.
v. It requires a trained person for its operation due to its complexity.

6. Differences between Horizontal and Vertical Filing

Cause of Difference Horizontal Filing Vertical Filing
1. Position of files Files/folders are kept in a flat or Files/folders are kept in a standing
sleeping position on the table or or upright position in drawer or
drawer, cabinet.
2. Use of instruments Flat files or arch files are used in Specially, made folders, which can
keeping documents and even the be stood in itself and a filing cabinet
drawers are as required. are used to keep documents.

3. Cost element and It is less costlier and thus, it can It is more costlier and thus, suitable
suitability also be followed by small scale only for the rich, big and modern
organizations. organizations.
4. Time consumption It is more time consuming as the Documents can be quickly filed
documents are to be punched and as punching and fastening are not
inserted in hinges or arches. required. It is less time consuming.
5. Safety In this system, documents are tied Since documents are kept loose
together. So, there is less chance in folders, there’s a chance of
of misplacing and damaging misplacing or dropping any of the
documents. documents from its place.
6. Flexibility It is less flexible, in the sense that, It is duly flexible because it has
it has no enough ground to insert enough ground for expansion and
the new documents and delete contraction of documents as well
the old and unnecessary ones, as the folders.
frequently as required.
7. Ready reference It is comparatively more difficult It facilitates ready reference as the
to locate a file and again the large caption or heading of each folder
number of documents because they is visible from the tab or extended
are kept in a pile and their position edge of the back sheet.
cannot be seen at a time.

34 Aakar’s Office Practice and Accountancy - 10 Filing 35