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iv. Economical : It is economical method as it does not require more filing tools
and manpower with special knowledge.
v. Space Friendly : It occupies less space in office as the files are arranged making
pile.

Disadvantages

i. Time consuming : It is more time consuming because it requires time for
punching, fastening and loosening the clip or lace. It is also difficult to locate
the particular file as the files are arranged making pile
ii. Unsuitable for large organizations : It is unsuitable to an organization having
large volume of transactions because of its limitation of holding the documents.
iii. Chances of words or letter missing : The important words or figures in the
documents disappear due to careless punching.
iv. Less secret : This system does not provide enough secrecy.

2. Vertical Filing

Vertical file is also known as upright filing system.
Under this system a cabinet with deep drawers, folders
and guide cards are used. All the correspondence is
kept in upright or vertical position. The document
remains unfastened as against the flat filing system
where they are carefully fastened. Owing to the
indicator cards being pasted on the standing files, it
becomes very easy to trace the papers, the record and
its reference.

Advantages
i. Safe method : It is safe method of filing because it provides safety for the
documents as they are preserved in special drawer or cabinet made of steel or
wood.
ii. Suitable for large organizations : It is suitable for large-scale organization
having huge number of documents.

iii. Flexible : It is comparatively more flexible than other methods of modern filing.
iv. Secret : It maintains secrecy of the documents because all the files are kept in a
drawer with locking system.
v. Quick location : It provides quick location of documents because the folders
are arranged vertically with index.

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