Files and folders are virtual dinosaurs in this age of the paperless office. All businesses can benefit from the proper management and organization of office records. Throwing things away seems almost a sin for some small business owners which is precisely why many find themselves buried under a mountain of disorganized paperwork.

Business owners will tend to keep everything in an effort to avoid having to decide what to keep and what to pitch. In time, the storage room door cannot be opened and hope is all but lost for finding any documents that may be needed. It is the responsibility of management to make sure things remain organized to prevent lowered productivity or a complete shutdown of business operations.

Barbara Hemphill, an expert on office efficiency, says that "most small businesses don't deal with their papers until it's too late." If there is one important piece of paper you need to find amongst hundreds if not thousands of other papers it could take you days to locate its whereabouts. Management needs to take steps now to prevent this type of situation from happening.

Step One Towards Office Organization

Start by declaring an office cleanup day. All employees should pitch in and help organize any and all paperwork in the office. If at all possible schedule this on a day that you're normally closed to avoid any distractions. Paying your staff overtime for one day will be well worth it once you see the results.

It is possible to organize the office by yourself and even some true blue entrepreneurs have been known to set aside a day for the task.

The paperwork atop your desk needs to be first priority. Organize by subject and then date. After sorting is out of the way, it is time to put everything in its proper place. If file folders do not exist for some of the paperwork, then create some so there is a place for them.

The accounting should be a top priority for obvious reasons so find all of the income statements and receipts lying about the place and sort these too. You always want your records to be current, so stick to the task of posting transactions to your books until everything is up to date. I can be a slacker on this one myself and wind up spending the majority of the day recording transactions. If it looks like you are not going to get finished, then just quit at a point that will be easy to start back up from again.

Now you'll need to find a place for your file folders. Place anything you may need in the near future in a filing cabinet that you can easily access. For other paperwork you can simply place them in crates or boxes and put them away for safekeeping. Be sure to clearly label when each box contains. You may even want to enter their contents into spreadsheets.

Computer Documents

Fire and water damage are a major concern for most businesses, especially for a home-based office. Small businesses find scanners to be a business asset. In minutes, a scanner processes a document from paper form to electronic file.

Computer documents are easily accessible and easier to file on a CD or 3.5" floppy. Of course, if you want to be really high-tech, you can use an external hard drive to store your documents. CD's, floppies, and external hard drives should be stored in a fire resistant safe, or off the premises.

Online automated backup services are also available. For a small fee, you can backup computer documents to an offsite system. This is excellent for financial records. No financial business should be without a backup system.

"Your ability to accomplish daily tasks is directly related to your ability to find the right information at the right time," Hemphill said. Management strategies are essential to the livelihood of your office staff and the success of your business. Don't wait until the last minute to organize!