Filing and Indexing Accountancy Notes

 Filing and Indexing Accountancy Notes

• What do you mean by filing? Mention the importance of filing.

Ans: In the course of performing different activities, different documents are created inside the office. Proper management of such documents is essential for future reference. Thus, filing is a systematic and scientific way of storing official documents safely for their future references and retrieving them as and when required. The significance of filing can be listed below:

1. Filing helps in the easy retrieval of important documents in the future.
2. Filing helps in the preservation of documents from loss, theft, pests, dust et cetera.
3. It acts as a precedent for future disputes and disagreements.
4. It helps in the formulation of plans and policies by providing suitable information.

• Explain any two traditional systems of filing.

Ans: Those systems of filing dating to the past are called traditional filing. Small offices and households still follow this method of filing. Some traditional systems of filing are as follows:

1. Misil Filing

Also known as case filing; in this system of filing, documents related to a particular case are collected in a file chronologically. The documents of earlier dates are placed on the bottom and the latest dates on the top. The documents are tied with lace and wrapped in a paper cloth. Each file is given a code called misil number. It is usually practiced in courts, land reform offices et cetera.

2. Box Filing

In this system of filing, documents are accumulated and piled in a wooden, metal, or paper box. Generally, a spring clip attached with the box is used to hold the documents properly. This system is preferable for less important and short-term documents. However, we find its applications in households to store land and building-related documents.

• Define misil file. Mention its advantages and disadvantages.

Ans: Misil filing is a system of filing in which the documents related to a particular case or subject are collected in a chronological manner. Various pros and cons of misil filing are as follows:

Advantages:

1. It is simple and easy to understand.
2. It is convenient to retrieve files by using misil number.
3. Addition and reduction of documents can be made easily.
4. It helps in proper referral to make decisions on current but similar past cases.

Disadvantages:

1. The application is limited as it is not relevant to offices not dealing with cases.
2. There is a greater probability of loss of data.
3. Punching the documents may make them illegible.

 

• Introduce the box file. Mention its advantages and disadvantages.

Ans: Box filing is the system of filing where files are piled in a particular box of wood, metal, or paper. The documents of earlier dates appear on the bottom and later dates on top. It is one of the traditional systems of filing. The advantages and disadvantages of box filing are as follows:

Advantages:

1. Easy to locate documents as all of them are stored in a single box.
2. It is an economical method.
3. Papers are kept loosely so the addition and reduction of files are simple.
4. Since documents are not punched there are no compromises with written figures.

Disadvantages:

1. Since the files are loose they can be easily mishandled.
2. Different kinds of documents in the same box make the process of retrieval complex and tedious.
3. This system of filing is not appropriate for important and long-term documents.

• What is a flat filing system? Mention its advantages and disadvantages.

Ans: This is a system of filing in which the files and folders are kept horizontally making a pile. The documents inside the files are kept chronologically. The documents are punched and tied with lace or held using metal clips. The face of the file states the details about the correspondent such as name, address, telephone number, subject et cetera.

The advantages of flat filing are as follows:

1. The system is easy to understand and implement.
2. Requiring fewer filing equipment is regarded as the economical method.
3. It requires less space as files are piled one upon another.
4. The documents remain intact as they are punched and tied.

The drawbacks of this system are as follows:

1. The word or figures in the document may become illegible while they are punched.
2. Files are without a locking system so they are accessible to unauthorized staff also.
3. Retrieving the files is complex since they are kept in a pile.

• Introduce a vertical filing system. Mention its advantages and disadvantages.

Ans: Vertical filing system allows the arrangement of files in the upright position. The folders are kept inside a drawer or cabinet having a lock system. Folders are usually made of hard paper and aligned alphabetically, numerically, geographically, or subject-wise as per the need for organization. Advantages and disadvantages are listed below:

Advantages:

1. The files can be easily located as they are kept vertically with a guide card.
2. The folders are away from unauthorized access as lock systems are used.
3. It is simple to add or remove the documents as they are kept loose inside the folder.

Disadvantages :

1. It is an expensive system since the documents are kept inside a lock system.
2. The task of making guide cards is tedious and confusing.
3. Since the files are kept vertically more space is occupied.
   
   

• What do you mean by alphabetical filing method? Mention its advantages and disadvantages.

Ans: Alphabetical filing method arranges the documents stored in drawers and cabinets according to the initial alphabet of the name of the person and institution. Alphabetical arrangements can be made on the basis of English or Devanagari scripts. It is very helpful for the quick location of required documents.

Advantages:

1. A simple and easy method to use and implement.
2. It is an economical system as there is no requirement for a separate index to retrieve the files.
3. It removes the complexity of dealing with numbers for the clerks.
4. It is appropriate for every kind of organization.

Disadvantages:

1. It will create confusion when files of two people with the same names are to be arranged or located.
2. Confidentiality cannot be ensured as all files are named.
3. The task of arranging a large number of files is meticulous.

• What is numeric filing? Mention its advantages and disadvantages.

Ans: The system of filing in which the files of persons or institutions are managed in a drawer or cabinet according to numerical order is called numeric filing. The folders are divided into various groups like 1 to 40, 41 to 80, and so on using guide cards. Also, a separate index is required where a separate card is assigned for each file. It contains detailed info about the name, address, phone number et cetera of the person or organization. It is followed by institutions with a large number of files like banks and libraries.

The advantages of numeric filing:

1. The method allows a high level of secrecy as files are arranged according to number.
2. The method enables the efficient and quick location of files as and when required.
3. The system is appropriate for organizations with huge volumes of data.

The disadvantages of numeric filing:

1. It is an expensive system as it requires a separate index and cabinet.
2. Since the method is a quite technical implementation and application may be difficult.
3. It is not suitable for a small organization dealing with a few files.

• Define subject filing method. Mention its advantages and disadvantages.

Ans: The system of filing in which the files are created according to the subjects but arranged either alphabetically or numerically is called the subject filing method. If a particular subject contains a large number of files, it can be further subdivided. For instance, if a file related to assets contains a large number of documents, it can be further divided into fixed or current assets for our convenience.

The pros of subject filing:

1. It is a flexible method so the addition and reduction of files is piece of cake.
2. A large number of files can be categorically subdivided into small factions.
3. It is appropriate for organizations with higher priority to subjects rather than names and numbers.
4. The guide card enables the retrieval of files in a quick and convenient way.

The cons of subject filing:

1. Division of files on the basis of the subject is strenuous.
2. Separate index and guide cards elevate the cost of filing.
3. It is very difficult to maintain confidentiality.

• What do you mean by geographic filing method? Mention its advantages and disadvantages.

Ans: The way of arranging the files of persons or organizations according to the names of locations or places is called the geographic filing method. All the documents related to a particular location are kept in the file assigned to it. It is suitable for those government organizations that function location-wise.

The advantages of geographical filing are listed below:

1. Easy location of data is possible.
2. The performance of a particular region can be ascertained by analyzing appropriate files.
3. It is appropriate for organizations that maintain their file on basis of different locations.
4. The files can be arranged either numerically or alphabetically as per the organization’s convenience.

The drawbacks of geographical filing are outlined below:

1. Confidential files cannot be filed under this method.
2. It is time-consuming to install this method of filing.
3. Files can be highly concentrated on a particular region while some regions may have no files under them.

• Introduce indexing. Explain its advantages.

Ans: Indexing may be defined as the process of development of an indicator or guide for locating files and documents. It is an essential tool for proper and efficient office management. A basic example of indexing is the content guide given in the initial pages of the books.

The advantages of indexing are briefly discussed below:

1. Indexing helps in the preservation of documents in an efficient and organized manner.
2. It helps in prompt retrieval of files as and when required.
3. Indexing helps in cross reference of files thus facilitating smooth official jobs.
4. Indexing is of paramount importance for maintaining confidentiality.
5. Proper execution of indexing reduces cost as it saves labor and time.