FORM SIX COMMERCE – THE BUSINESS OFFICE

           FILING EQUIPMENT

           There is a wide range of equipment available for the storage of information in an organization. Filing equipment consists of covers, folders,
filling cabinets,etc.

           Purpose of filing equipment

           Filing equipment must serve the following purposes

           (i)   Protection of document against any loss through careless handling, damage by five, water or deterioration through dust.

           (ii)  Prevention of theft or unauthorized use.

          (iii)  Insertion, location and extraction of documents must take less time or effort.

          (iv)  Easy traceability of files.

                A file is a collection of papers or documents dealing with one person or topic. The equipment in which they are kept is known as file cover or
binder

              Types of file covers

                 (i)  Box files

                       These have a solid box- like construction and a spring loaded compression pad which holds down the filed material firmly. Box files
may be used to keep letters leaflets, catalogues, e.t.c

                (ii)  Lever arch files

                       These contain metal devices opened and closed in the centre of the folder operated by the lever.

                (iii) Concertina files

                       These are made up of number of succession pockets into which similar documents can be collected ready for processing.They are
suitable for temporary documents awaiting processing like petty cash vouchers and such documents which do not need to purchased
eg. Certificates e.t.c

               (iv)  Ring binders

                      These are made of hard covers and two or more rings which open to allow the in section and removal of documents.

                        Filing cabinets

                        Several kinds of filing cabinets are in use, the common one being vertical, horizontal, lateral and circular.

               (i)    Vertical filing cabinets

                      These are fitted with drawers in which files or folders are kept in vertical position.The cabinet may accommodate fullscape paper
papers, A₄ or A₅ take cards or micro films. They are either made of steel or wood. For security purposes, cabinet are also provided with
special locking devices including combination locks.

             (ii)    Horizontal filling cabinets

                      These are made of several drawers in which files or folders are laid horizontally. They are used for storing stationery, photographs,
maps, stencils, drawings etc. than for files. This is because files are on top of each other which makes it difficult to refer to the
document.

            (iii)     Lateral filling cabinets

                      These are made of suspended filing packets and files kept in their vertical position. The filing cabinets are held laterally along the
shelves of the cabinet, rather than in drawers.

            (iv)    Circular rotary filling cabinets

                      These enable a great, many records to be filed in wallets or pockets around a central vertical pillar. They economize space very
accessible and can be used by several filling clerks at the same time.

                FOLDERS

               Folders are the basic of vertical filing they are made of manila paper or some other strong paper and are used to hold papers and
documents.        

                FILING METHODS

               This refers to how file cover or binder are kept in the filing cabinets

               Factors influencing the choice of filing methods/systems

                (i)       Simplicity- to be affordable to new employee.

               (ii)       Elastic- room for expansion and capacity to accommodate new files.

               (iii)      Cost- cost of keeping files should be minimum.

               (iv)     The number of file and documents to be retained.

               (v)       Reference- there should be easy reference of documents.

                Filling methods/systems include:

1.Flat/horizontal filing.

                 Is the keeping of files in the drawers, racks or in shelves when one is on top of, another lying horizontally.

                Advantages of horizontal filing

1. It is simple to operate. It is easy to file documents.
2. It facilitate easy references of documents as they are filed in chronological ( date- wise) order.
3. It is flexible system.
4. It can keep letters in proper order with the help of spring fastening device.
5. The letters can be referred without moving them from the file. Thus, risk of being lost is maintained.

 

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             Disadvantages of Horizontal filling

1. It is unsuitable where the volume of records is very high
2. To take out any proper , other papers have to be dislocated as the paper are kept in the order in which they are received.
3. When a large number of papers are stored in one file, their location becomes somewhat difficult.
4. This system is less flexible and takes more time as compared to vertical system.

 

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            2.Vertical filing

       Is the keeping of files within the drawers, racks or in shelves when they are standing up- right north to north

            Advantages of vertical filing

1. Vertical filing allows ready reference of papers and documents. The heading of each folder is visible from the extended edge of the back- sheet.
2. It is really adoptable. The folders can be arranged according to any classification such as alphabetical numerical and subject-wise.
3. It is economical compared to the horizontal equipment as it can accommodate more papers.
4. It provides ample scope for expansion while installing this type of equipment adequate provision for expansion of the number of folders can be made in the drawers.

 

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            Disadvantages of vertical filling

1. Vertical filing is not as fast as the other methods of filing such as visible card filing and rotary card filing.
2. There is always a possibility of folders shipping down the drawers. This may lead to unnecessary wear and tears of various folders.

 

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       3.Suspension filing.

          Is the keeping of files vertically while metal bars are affixed on sides of a filing cabinet drawer to prevent them from falling off from the filing
cabinets.

1. Lateral filing.

 

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       This is where the files are stored on shelves or on pockets suspended side by side from frames.

1. Open shelf filing

 

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       Is a method of filing in which open shelves are used in the library to store folders. Under this method open shelves or wooden or steel racks are
utilized for keeping files and papers.In open shelves,filing may be done horizontally or vertically, and any method of classification may be
adopted. This method of filing is especially used where papers are kept in envelope of packets or some other covered jackets.

1. Visible card filing

 

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      This method use a visible card equipment. This equipment is developed on the principle “look at the record, not for it” the main characteristic of
visible filing is that, the main reference on each card is visible at all times. Generally , the cards are laid in a flat shallow tray or in a metal hinge.
The cards are put in transparent covers before arranging them in trays. Each card is so arranged into a metal hinge that it overlaps the one before
it in such a way that a narrow strip at the bottom containing name, telephone number of the subject remain visible.

                CLASSIFICATION OF FILES

           (Classification system of documents)

           Classification system is the basis of arranging documents in the folder.

               Or

           Classification is the process of selecting headings under which documents are grouped or classified on the basis of common characteristics
before filing takes place.

CHIEF METHODS OF CLASSIFICATION OF FILES

1. Alphabetical classification

 

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      This is where documents are filed according to the first letters of either the name of sender or the subject. The arrangement is similar to words in
an English dictionary or names in telephone directory. If a number of files are kept, each file is given a title and the files a re arranged in the
alphabetical order in the filing cabinet.

          Advantages of alphabetical classification

1. Training is not needed for the clerks to perform the filling.
2. It is easy and convenient to group papers by names of persons, firm, products etc.
3. Direct filing is possible without the help of an index. It is self-index.
4. Files can be located immediately.
5. Number of files can be reduced or introduced without disturbing the classification.

 

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          Disadvantages of alphabetical classification

1. In large systems it takes longer time to find papers.
2. Mistakes creep in under common names i.e when there are several persons having the same name.
3. There is also difficult if the names are mis-spelt.
4. For large organizations, papers may be reasonably be filed under different headings.
5. It is difficult to forecast space requirements for different letters of the alphabet.
6. Numerical classification

 

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     In this system documents are arranged according to numbers rather than letters. A number is allotted to each customer and the same number is
put on all papers or documents relating to transaction with him thus, the number allocated to each correspondent becomes his file number. If one
file contains records of more persons, decimal system may be used e.g. 21.1 donates one person; 21.2 donates another and so on and these are
file No.21 an index is necessary for locating the correct file.

         Advantages of numerical classification

1. Accuracy in filling system is greater.
2. Reference is made by numbers.
3. They have unlimited possibilities for expansion. New documents are added to the file as they arise.
4. If files are misplaced, it can be noticed promptly.
5. It is easy to operate, numbered files can easily be located and arranged serially in comparison to alphabetical index.
6. The filling index may be used for other purposes ( for example a mailing list) as well.

 

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         Disadvantages of numerical classification

1. Transposition of figures causes mis-filing.
2. A separate index must be provided.
3. It takes time for a new employee to fully understand the system.
4. Filing and finding is indirect.
5. It takes longer to file material as it involves two operations i.e the recording of paper number on the card index and the filing of the document.
6. The alphabetical- numerical or alpha- numerical classification

 

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       It is a combination of the alphabetical system and numerical system. In this system and numerical system. In this system each letter or
sub-letter is given its own number and an index card is placed behind the guide card for each alphabetical section.The names and numbers of all
the folders are mentioned in a numerical order behind each card. The coloured guide cards are used to sub-divide for folders into groups to
facilitate their speedy location. The names and numbers of all the folders are mentioned in a numerical order h=behind each card. The coloured
guide cards are used to sub-divide for folders into groups to facilitate their speedy location for instance, all files are arranged alphabetically and
the first group is Aa- Ag. The folder of ABC firm, Agra book stores are first and second in order within this group; the first folder will bear the
number A/1 and the second folder will bear the number A/2 and so on.

       Advantages of alpha-numerical classification

1. It has all the advantages of the alphabetical and numerical classification.
2. I t is an elastic classification.
3. It facilitates quick reference.
4. Geographical classification.

 

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          4.Geographical classification.

Is the arrangement of files according to their place of origin. For example files can be arranged by countries, towns or by province in a country or by districts in a province. Files within each group are arranged alphabetically. This system is generally profitably used by banks, insurance, departmental stores etc.

     Advantages of geographical location

1. It is simple to operate.
2. Statistical data can be collected easily.
3. Suitable for companies that have several branches spread over different parts of the world or a country. For example, oil companies and commercial banks.
4. Convenience of reference where the location is known.
5. Direct access for filling purposes.

 

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     Disadvantages of geographical location

1. Possibility of error where knowledge of geography is weak
2. Geographical location on must be known in addition to correspondent’s name
3. Index necessary for occasional reference
4. Subjectwise classification

 

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       In this, records are filed according to the nature of their subjects or contents. Papers are first arranged subjectwise and then in alphabetical order.
Papers on a particular subject are arranged and put together, rearranged alphabetically or numerically and filed accordingly, there may be order
file invoice file, complaint file, e.t.c

          For examples:-

         Main subject classified:

         Purchase

         Sales

        Promotion

        Sub-division of classified subjects:

        Sales- cycle parts

        Sales- scooter parts

        Sales – motor parts

         Advantages of subjectwise classification

1. All documents referring to a particular subject or matter are kept together in one place.
2. The files can easily be expanded or contracted by simply adding or subtracting old ones.

 

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         Disadvantages of subjectwise classification

1. Determining the of divisions is difficult and requires someone with a knowledge of the business and its files.
2. Determining under which subject heading it should be filed requires a trained and careful employee.

 

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         Chronological classification
Under this system various records are identified and arranged in strict date order and sometimes even according to the time of the day. For
examples, newspapers, current prices, market reports, e.t.c.It is a useful system if dates are known.

           Advantages of chronological classification

1. Useful if dates are known.
2. If provides for unlimited scope of expansion.

 

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           Disadvantages of chronological classification

1. It is not always suitable.
2. Incoming letters might become separate from outgoing ones.

 

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           Factors influencing choice of a filing system

     The method of classification to be used will depend on the need of the business concerned. The following are general guide-lines for any
organization to choose a classification system.

1. The number of files and documents that need to be retained.
2. Simple in use and easy to explain to a new employee. It should be the one could take up after a brief explanation e.g Alphabetical filing.
3. There must be room for expansion and capacity to accommodate new files without the need to change the existing documents( i.e. their sequence order).
4. There must be easy reference and minimum possibility of misfiling.
5. A document need not have more than one file or filed under different subjects.
6. The cost of keeping files must be minimum. Filling classifications have different equipment and maintenance costs of keeping them.

 

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             INDEXING

            Indexing means to guide something.An index is an indicator, indicating any subject matter.In filing, index helps the location of any letter,
record, files et. Thus it provides quick reference, which is essential of a good filing system. A index can be seen in almost all books, in last
pages. The index will indicate the pages. The index will indicate the page number, where the particular subject is dealt with.An index is device
for finding the position of a document or file in a system quickly and easily.

             Difference between classification and indexing:

             Classification is a method of filing and the manner in which the files of different subjects are arranged.

                       While

             Indexing is a method of making reference to the files.An index is a finding tool. It furnished the key as to how the material are arranged.

             Importance of indexing

1. Indexing is an essential part of a good filing system as it is a guide.
2. It provides a ready reference.
3. It facilitate easy location of files.
4. Even if the files are arranged in self- indexing method index will further speed the work.
5. It possesses minimum information.

 

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             Essentials of a good system of indexing:

             A good system of indexing should possess the following essentials

1. It must be simple to operate and use
2. It must be economical in terms of money, space and effort
3. It should be flexible to allow for expansion
4. It should allow for speed
5. It should be suitable for the particular business
6. It should have locking arrangement

 

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            METHODS OF INDEXING

            The following are the important type of indexing:

1. Bound book index

 

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This system normally consists of a bound book, each page of which is allotted tone letter or more letters of the alphabet. Each page of this book has a tab which indicates the letter or letters of alphabet allotted to it, for example, if it is desired to see the number of the page in which the account of Mr. Anil is kept, the page marked ‘A’ will be seen or against the name of Anil ill appear page number, that is, page number on which anil’s account appears.

Such an index may take the form of a separate book or an index in the front or at the back of the book. A bound book index is a vey simple method of indexing. No special training is required for office clerks to operate it. The pages cannot be lost as they are bound.

1. Vowel index

 

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Here each letter of the alphabet is sub- divided into six divisions according to five vowels that is A, E, I, O, U and Y.If there are many names beginning with the same alphabet, they can be again sub-divided on the basis of vowels. For example, rams name will be written on the page of the register marked “Ra”. The Rekha will be written on the page of register “Re” and so on. This type of index can be used for small and medium size concerns.

          Advantages of vowel index

1. It  is a permanent record.
2. It is safe, because it will not be lost.
3. It is always in the register itself and no time is spent in searching the index.

 

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          Disadvantages of vowel index

1. In the book index, the names of persons are written, as and when occurred. So it takes much time to search a name. there are many pages allotted to the same letter. But vowel index is an advantage.
2. The system is in elastic.
3. The names of the persons, who are no dealing with the firm have to be truck off.

 

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           3.Loose leap index
This is another form f book index. Loose leaf is a sheet ruled like the pages of ordinary index. The sheets are inserted in or taken of from metal
hinges or screws, as and when required. It is arranged as the library card index system. Each person (correspondent) is allotted a card on
which the name of the person, the address, the file number etc are entered. The loose leaf index diagrammatically.

Examples of loose leaf index diagrammatically

 

         Advantages of loose leaf index

1. Index of dead files can easily be removed.
2. The system is elastic.
3. Complete information can be had.
4. Additional information can be written or typed easily.
5. It save time and material.
6. It is very economical.
7. The dispatch of monthly statements and trade circulars is easy.

 

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         Disadvantages of loose leaf index

1. It is possible that cars, are torn quickly by constant use.
2. Equipments are needed to keep the cards, therefore this system is expensive.
3. There is possibility of cards being misplaced, when they are inserted or taken out.
4. For small firms it is a mere waste.

 

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        4.Card index
This is another method of preparing index. The index is prepared in cards, each card is allotted for one information e.g. customers, firms, etc.
the details of the reference are shown on cards. Cards of equal and uniform size are used. The cards may be of different colours of getting a
good appearance or for distinguishing one group of cards from another. The card bears the number of file and the names of references along
with particulars. The cards are placed in drawers, which are specially made for them. The cards are arranged in the dictionary order. E.g. if the
file of Rama medical is to be taken of, first we have to look for the card, in the index drawer under Ra section indicated by the guide card, Ra.
After a look at the index, the file number of Rama medicals can be known. Then find out the file from the filing cabinet.The cards are kept in
drawers. A rod is put through them to hold the cards. So the chance of misplacement is reduced. The cards may be placed clerically or
horizontally.

         Advantages of card index

1. Any type of ruling can be adopted for the cards.
2. Insertion or removal of cards is easy.
3. It is capable of being expanded.
4. Location of card is easily.
5. Rearrangement of car as is possible.
6. The system ensures quick and accurate references.
7. Foldable card can also be used.

 

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         Disadvantages of card index

1. It is complex and elaborate.
2. There is the danger of the cards being lost or misplaced.
3. It is not suitable for small firms.
4. It requires special equipment and specialized clerks.
5. Visible card index

 

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       The cards are placed flat in transparent covers in a shallow tray or metal frame it is so placed into a metal hinge that the name and address is
visible without touching another card. Then trays or frames are fitted vertically to metal stands or fitted horizontally into cabinet. The cards are
placed according to alphabetical, numerical or alpha numerical order. The writer can write on the card (either on the back or on the front) without
removing it from the frame.

       Advantages of visible card index

1. It is compact and requires less space.
2. As it is visible, there will be speed in work.
3. It is useful to management as it provides quick information.
4. It helps management in controlling purchases, sales e.t.c
5. It gives a list of customers easily visible to the eyes on the frame and requires less expense and minimum effort.
6. Wheel index

 

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      Is a system according to which cards are mounted round the hub of a wheel. The wheel moves or rotates on ball bearings. When a particular file is
needed, the wheel is rotate and the required card referred to this system is economical as well as flexible.

1. Strip index

 

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       This system consists of strips of cards or thick paper fitted in a frame is such a way that the strips can be taken out or inserted. The frames are
fixed in a shelf or in a book form. Dead strips can be removed and new strips can be inserted.

         Cross-reference

        It is possible for a correspondence to be filed in 2 or 3 different files, but only one copy is available. A good cross- reference system is needed. It
is in the form of card or folder directing a person to where a document which can be filed under more than one file found. For example, a letter
Akola- okubu might be filed under Okola- okubu file or in Okubu –Okala file. Where a letter from Akola – Okubu is filed under Okubu- Akola file, a
cross-reference card put under Akola- Okubu file to direct where it is located.

      

     selection of suitable indexing system

     Every system of indexing has its own merits and demerits. Some methods are rigid while others are flexible though expensive. The installation of a
suitable indexing system depends mainly on the following:

1. The type and the extent of information needed.
2. Cost of equipment in each system.
3. Cost of labour in each system.
4. The requirement of space required for each system.
5. The frequency of adding or deleting.
6. The purpose of keeping an index.

 

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         Marking absent files

    If a file is likely to be removed for a couple of days, “marked’ folders should be inserted in the place to collect any papers referring to the absent
file. At times, it is referred to as an “out card”. “A loan registry” book should also be used to note down when files are taken out. The names of the
person who has taken it, noted, when returned , a signature by the loaner will cancel the entry.

        Released for filing

        Before letters can be filed, they must have been replied to any person responsible for replying letters will usually mark in the corner of the letter
with an agreed upon release symbol i.e letter ‘F’ putting his initials, etc alternatively he will place it in a basket that is labeled “for filing”.

       Retention of records

      Documents and records are not all expected to be kept permanently in the filling cabinets. When records become destroyed or transferred to
reserve storage. Because of small space available for storage. Because of small space available for storage, unnecessary records should never be
held for unduly long periods. This does not mean that records that may b needed later are destroyed. For this reason, organizations have specific
period of time, records are expected to be kept in the organization. That is what is referred to as “the retention period” such retention periods
should be noted on the records and extracted from the cabinets on the expiry periods.

      The length of period for which records are retained depends upon cost, space, future need and nature of the documents enough space is available
and these records are needed in future then these can be retained for a longer period and vice versa.