Chapter 2: Filing and Indexing
2.1 Concept and Need of Filing
Filing is the systematic process of classifying, arranging, and preserving important office letters, vouchers, deeds, contracts, and records safely so that they can be located and retrieved quickly whenever required in the future.
- In the words of G.R. Terry: “Filing is the placing of documents and papers in acceptable containers according to some predetermined arrangement so that any of them when required may be located quickly and conveniently.”
Objectives and Importance of Filing
- Preservation of Documents: Protects valuable vouchers, agreements, and correspondence from dust, insects, moisture, fire, and theft.
- Ready Reference: Enables employees to retrieve past records rapidly without wasting time.
- Documentary Evidence: Filed documents serve as legal proof in court disputes, tax assessments, and audit verifications.
- Basis for Future Planning and Policy Formulation: Provides historical data and past precedents for formulating future budgets and policies.
- Follow-up and Prompt Correspondence: Helps track pending letters, unpaid bills, and ongoing contracts.
2.2 Systems/Methods of Filing
Filing systems are broadly divided into Traditional Filing Methods and Modern Filing Methods:
A. Traditional Filing Methods
- Misil Filing: Documents related to a single legal case or subject are tied together in chronological order using a red/white cotton ribbon inside a thick Nepali paper cover. Widely used in Nepalese courts, Land Revenue Offices, and District Administration Offices.
- Box Filing: Papers are kept loosely inside a wooden, metal, or cardboard box with a spring clip. Suitable only for temporary or domestic documents.
- Wooden Plank Filing: Papers are placed between two flat wooden planks and tied tightly with a cord. Used in traditional revenue/accounting records.
- Wire/Spike Filing: A thick steel wire with a sharp upward point fixed on a wooden/metal base where receipts or bills are pierced in chronological order.
- Pigeonhole Filing: A wooden cupboard divided into many small compartments (like pigeonholes) labeled with Nepali consonants or English letters (A to Z) for sorting mail.
B. Modern Filing Methods
| Feature / Basis | 1. Horizontal / Flat Filing | 2. Vertical / Upright Filing |
|---|---|---|
| Position of Files | Files are kept flat (horizontally) one on top of another in drawers or shelves; papers are punched and fastened with metal clips/laces. | Folders are kept standing upright (vertically) side-by-side inside deep steel filing cabinet drawers; papers lie loose inside manila folders. |
| Ease of Insertion & Removal | Difficult and time-consuming; to remove a lower file or middle paper, upper files/clips must be opened. | Very fast and convenient; any folder or single sheet can be pulled out or inserted instantly without disturbing others. |
| Space & Cost | Requires less initial equipment cost (simple cardboard files and cupboards) but occupies more floor space for large volumes. | Requires higher initial investment (steel vertical cabinets and manila folders) but accommodates thousands of papers in compact floor space. |
| Visibility of Signals/Tabs | File spine or cover must be read by pulling files out. | Angled tabs at the top edge of folders make labels immediately visible when the drawer is pulled open. |
| Suitability | Suitable for small offices and for records that are seldom referred to. | Suitable for large offices with many files that are referred to often. |
2.3 Methods of Classification of Files
To arrange folders systematically inside modern filing cabinets, offices use five main methods of classification:
1. Alphabetical Classification
Files are arranged according to the first letter of the person’s, firm’s, or organization’s name in dictionary order (A, B, C… Z).
- Merits: Simple to understand; self-indexing (no separate index required); easy to add new files under any letter.
- Demerits: Confusion occurs when multiple persons share the same name (e.g., Ram Bahadur Thapa); difficult to estimate how much space each letter will need; secrecy is not maintained since names are openly visible.
2. Numerical Classification
Each correspondent, client, or file is assigned a unique serial number (1, 2, 3… or 101, 102…), and folders are arranged strictly in numerical order. A separate Alphabetical Index Card is required to find which number belongs to which person.
- Merits: High secrecy (outsiders see only numbers); unlimited expansion (new files simply take the next number); zero confusion among identical names; file number can be used as a reference code on letters/vouchers.
- Demerits: Indirect system requiring a separate index (costly and time-consuming); transposition errors in reading digits (e.g., 142 vs 124) can misplace a file.
3. Subject-wise Classification
All letters and documents relating to a particular topic or subject (e.g., Audit, Budget, Building Construction, Taxation, Staff Leave) are grouped together under that subject heading, arranged alphabetically by subject.
- Merits: Extremely useful when subject matter is more important than the correspondent’s name; all documents on a topic are found in one folder for quick Tippani or report writing.
- Demerits: Difficult to classify a letter that covers two or more subjects; requires cross-referencing cards; slow if one only remembers the sender’s name and not the subject.
4. Geographical Classification
Files are grouped according to geographical locations—such as Province → District → Municipality/Rural Municipality → Ward → Customer/Office Name.
- Merits: Ideal for banks, insurance companies, electricity/water utilities, and sales/distribution departments; helps evaluate regional performance.
- Demerits: Requires thorough geographical knowledge; requires a separate index if the customer’s address changes or is forgotten.
5. Chronological Classification
Documents and vouchers are filed strictly in the order of date and time of occurrence (Year → Month → Day).
- Merits: Essential for accounting vouchers (Journal Vouchers, invoices, Darta/Chalani registers); very simple to maintain daily records.
- Demerits: Cannot locate a document if the exact date of the transaction is unknown; separates multiple letters from the same person across different dates.
2.4 Indexing
Meaning and Importance of Indexing
Indexing is a guide, indicator, or pointer that helps locate the exact position of a specific file, ledger account, or document quickly. Just as a book’s table of contents guides a reader to a page number, an office index guides the clerk to the exact cabinet, drawer, and folder number.
Types of Indexing
- Book/Page Index: Bound book or register with alphabetical cut-tabs on the right edge (used in ledgers and registers).
- Loose-Leaf Index: Sheets held in metal hinges so pages can be added or removed as needed.
- Vowel Index: Used by large organizations where each consonant section (R, S, etc.) is further subdivided by the first vowel following the initial letter (a, e, i, o, u — e.g., Ram under R-a, Rishi under R-i).
- Card Index: Thick uniform cards (5“ × 3“) kept vertically in drawers, each containing the name, address, and file number of one client (widely used in libraries, hospitals, and numerical filing).
- Visible Card Index / Strip Index: Cards or strips mounted overlapping on flat metal trays or rotary wheels so names and file numbers are visible at a glance.
- Digital/Electronic Index: Database search index by ID, PAN, name, or keyword.
Differences Between Filing and Indexing
| Basis of Difference | Filing | Indexing |
|---|---|---|
| 1. Meaning | Systematic preservation of original documents and letters in folders/cabinets for future reference. | A guide or indicator system that shows the exact location of filed documents. |
| 2. Objective | To protect documents from damage/loss and provide legal evidence. | To save time and effort in locating a required file quickly. |
| 3. Scope & Dependency | Filing is the primary activity; every office must maintain files. | Indexing is a supplementary aid to filing (mandatory in numerical filing, optional in alphabetical filing). |
| 4. Physical Form | Consists of actual files, folders, papers, vouchers, and steel cabinets. | Consists of index cards, alphabetical registers, strips, or digital lookup tables. |
| 5. Space and Cost | Needs folders, cabinets, and floor space that grow with the volume of records. | Takes little space and cost, since it holds only one card or entry for each file. |
2.5 CDC Textbook Exercises & SEE Practice Questions
Group A: Very Short Answer Questions (1 Mark Each)
- What is filing?
- What is Misil filing?
- Which classification of filing requires a separate index?
- Define indexing.
Group B: Short Answer Questions (5 Marks Each)
- Differentiate between Horizontal (Flat) Filing and Vertical (Upright) Filing in five points.
- What is Alphabetical Classification of filing? Write any two merits and two demerits of it.
- Explain Numerical Classification of filing along with its advantages and disadvantages.
- What is indexing? Write any five differences between filing and indexing.
Worked answers to these exercises are in Chapter 2 Solutions.