Law Office Filing Systems Explained
Establishing an effective filing system is paramount to the success of law firms. Since lawyers are exposed to a constant influx of information, having an organized filing system is necessary to stay on top of cases and to manage the deluge of paperwork that comes in and out of the office every day. First, a filing system is crucial for organizing case files, thereby becoming a conduit for compiling essential facts at a moment’s notice. When utilized correctly, a filing system can save time and effort in sifting through piles of documents. Second, with all the new technology being introduced to the practice of law, it is easy to get overwhelmed by paperwork and computerized documents. An organized filing system will help organize data while also allowing you to index hard copy materials. The result is an organized flow of documents that is efficient and easy to navigate. For example , your legal practice software may be overloaded with papers and documents from a particular case, and physically filing all of those documents creates a simplified backup of what is available in your practice management program. A well-organized filing system also increases efficiency. Once you have your legal documents organized, they can be easily retrieved at a moment’s notice. As mentioned above, organizing your files can also help to back up your data. Beyond the obvious benefits of a filing system, an organized office is simply more pleasant to work in. A clear desk translates to a clear mind. Some studies have shown that a disorganized office creates anxiety, which can lead to feelings of losing control. That can be detrimental to the success of any law firm.
The Different Types of Filing Systems Commonly Used in Law Offices
Physical filing systems, in which documents are filed and stored in a tangible format, remain common, although their prevalence is decreasing. These systems involve physically filing, organizing, and finding documents with physical storage systems like filing cabinets, desks, binders, and paper trays. While this system is easy to access and inexpensive to set up, it can be time-consuming and difficult to organize. Though much would depend on the law office’s circumstances. For some law firms, an all-paper filing system is simply more cost-effective. An example of this is a relatively new law office startup that just cannot afford to pay for all the required tech to run an efficient digital filing system.
Digital filing systems are those in which documents are filed, organized, and found using a computer, tablet, or other electronic device. Digital filing systems often involve the use of cloud-based storage solutions but can also be stored directly on the computer so that it is easy to view without an internet connection. These systems are quick to set up, relatively inexpensive, and easy to access. Cloud-based solutions often have low costs to utilize and maintain. There is no need to keep a physical space with a server (if you don’t want to). However, many law offices usually opt for a hybrid solution and invest in a private cloud as it does not require internet access to work.
Hybrid filing systems are a combination of physical and digital filing systems and may be seen as a compromise solution. Using a combination of these two systems allows law offices to reduce the disadvantages of both systems. For many law offices, this solution is sometimes more efficient and desirable. For example, some law offices still find it easier for their attorneys to physically access hard-copies of files that exist in the digital filing system. Or some of them physically files important documents for a shorter period of time. When these files are not accessed on a daily basis, they are digitally stored for future access.
How to Set Up a Well-Organized Filing Structure
An organization filing structure is based on a hierarchy, and should be intuitive, so documents take the shortest path to the user. This typically involves grouping files into broad categories. You can then add another layer to organize information by subject, client name, project, etc.
The effectiveness of your Law office filing system depends heavily on how you categorize your documents. It’s best to keep the entire office on the same page, so you want to ensure that you use a consistent and relevant categorization method. For example, you may wish to organize your law office filing system by client name or matter type. In either case, the classification should be uniform.
Once you group documents into categories, you then move on to defining a standardized naming convention. Legal office files contain client, project, and administrative information, for example. That said, the requirements to create a name are different, so when you trademark an IP case, for instance, you’ll need to include the trademark registration number.
You may also need to add the filing date, which is essential for administration purposes. In this case, you can also include the filing status. This is helpful for when a document must be refiled as an exhibit with a motion, for instance. You then need to decide if you use letters and numbers in the naming convention. Once you establish a rule, you must teach your team to always follow it. Always ensure that only one document has a specific name, because this can lead to confusion.
On the other hand, sometimes you want to attach control numbers, for example, to indicate priorities, such as "Personal Injuries," "Class Action," "Malpractice Suits," etc. This is similar to how hospitals and clinics use a color code to categorize patient information, with blue code denoting patients on drugs, pink code for minor cardiac surgery, and so on.
Examples of Different Types of Filing Systems
A mid-sized law firm based in California uses both color-coded and categorized filing systems. The firm has a "hot case" folder system to quickly access and review the most important files without having to search through a pile of folders. The office has several categorizations for its existing cases, such as a litigation folder where an attorney can find sub-folders for all the firm’s current litigation cases.
A small, six-attorney law firm in the Midwest utilizes a virtual paper filing system. Each employee scans paper documents into PDFs and organizes them on their computers in a system parallel to a physical filing system. All documents can be accessed electronically through the attorney’s office network. Periodically destructive scans are performed to reduce the size of the volume of paper the firm maintains but scanned paper files are always backed up into the firm’s network. When clients visit, they are ushered into conference rooms with laptops available for note taking and document reviewing during meetings.
Another small, two-part-time-attorney firm uses cloud-based storage that organizes documents by the year of creation and by client. Files can be found by client name or in a year-specific folder. Important documents are highlighted. The whole office is networked and staff can remotely access files through mobile phones or tablets.
In-house scanning technology helps a large Texas-based law firm easily store, access and find all the documents related to a particular case. All the firm’s clients have separate accounts. The firm can easily track who accesses what files and what they print. Each time a staff member enters and saves a file, the document is date-stamped into a centralized repository. The attorneys can find what they need in a short amount of time. The firm has a method of color-coding files so that the staff can identify which types of files are located in which folders.
How Digital Technology is Changing the Filing System for Law Offices
As law firms evolve and expand, their filing needs change. Modern technology and digital filing systems providing an electronic-based way of filing and case management has become the industry standard. Cloud storage and document management systems are now at the forefront of enhancing the filing systems of law offices. An electronic filing system allows law firms to quickly store, access, backup, and file important documents. Technology has made it possible for the filing process to be much faster, saving valuable time for law offices with multiple case files , especially those that handle a large volume of cases each year. Cloud storage is a modern approach to filing that has become increasingly popular among law firms. This solution provides secure document storage and a filing system that law offices can access from anywhere in the world. The increasing use of web-based technology has made this type of storage system not only cost-effective but also safe and secure. Document management systems allow for the fast filing and retrieval of electronic documents. This system makes it easy to search for specific legal documents through the use of keywords. It also allows law offices to restore any previous versions of a given document. This helps retain an office’s professional image by allowing them to keep track of all changes that are made to any typed document. These modern digital filing systems has proven to be more time-efficient. Using these technology solutions, multiple documents can be filed away electronically, which eliminates the need for having physical documents in a filing cabinet. The filing process of law firms has become quicker, easier, and more secure than it has ever been. Technology has led to the creation of filing and storage systems that match perfectly with the daily operations of law offices. Clients are now assured that their documents are secure and that their personal information is kept confidential.
Tips and Best Practices for Keeping Law Office Files Organized and Secure
One important aspect of an effective law office filing system is maintaining, updating, and securing files. The best practice is to create a specific schedule or time frame for updates and maintenance. Many firms find that a good baseline is updating files at least once per month. This enables you to maintain an up-to-date filing system without becoming stressed over failed deadlines or fear of misplaced files. This could be any day of the week, and you can even assign the task to an assistant.
Important note: Your system should comply with all legal regulations, including your own state bar association or State Supreme Court. They may have specific requirements around how you must update and store files.
Case Study: A Law Firm’s Transition to a Digital Filing System
A two-part transition to a digital filing system was the answer for Yegendorf Law, PC. As a solo practitioner, Daniel Yegendorf initially capitalized on the space-saving benefits of a paperless system and then, as his practice grew, realized it was necessary to adopt a dual filing system.
Yegendorf first started his transition in 2012, converting a legal document creation program to a digital filing system. "Since it was an established process, it was straightforward to simply change the way that my records were organized."
However, as the firm grew, Yegendorf soon discovered that it was necessary to have a dual filing system. The clerk providing case support services implemented a file tracking system, which allowed Yegendorf to participate in client case matters regardless of whether documents were in paper or electronic form. When they were in paper form, documents would be sent to the client or maintained in the physical file. However, if the documents were maintained in an electronic system, a universal clerk would input the related notes in the case tracker and then scan the documents into the system. "As a result of this, my clients’ files were not at the mercy of being timely reviewed by me but could still be an electronic form."
Yegendorf also found that the transition to a digital filing system has provided him competitive advantage. "A notable example was that we were able to compete for a Williams Institute Fellowship in 2015. My colleague, who is now a senior associate, successfully applied for the award in order to provide access to free legal assistance by our non-profit to a specialized group of writers but I was pleased to accept the files from applicants, which were provided electronically through Box, and enter them into our system. This accomplishment led to a subsequent request to work with the Inclusion, Equity and Diversity Team of San Diego Pride in 2016, which we were also able to accomplish, providing free legal information as we were able to index, track and search the files. In fact, some cases resulted in grant-funded capacity-building for referral sources who used our assistance to help many more individuals."
Working with a unified digital filing system has allowed the firm to maximize their time and efficiency. When clients abandon an application process (perhaps even after getting assistance from the firm), the clerks can easily identify the file and remove it from the system so no one is left hanging. "Since I work so closely with the clerks (and am training my PI), they now understand what I consider high priority and can properly triage the other requests when I’m unavailable, freeing me to utilize my limited time on areas where I am most valuable, which then also maximizes my value to clients."
Yegendorf has certainly took the right approach with his digital filing system – by spending 40-60 minutes a week indexing, searching, archiving and backing up the files, the firm has ensured it has the best competitive advantage and time management systems in place.
Final Thoughts on Law Office Filing Systems
The world of law office filing systems can seem daunting; however, the benefits of a well-organized system can be enormous. Paper files are unavoidable, and so is electronic media. As mentioned, the primary goal of any filing system is to bring order and efficiency to the practice of law. The secondary goal is to support proper business and legal management. As a law firm marketing and technology consultant with many years’ experience, I have witnessed many law firms that fail to recognize the long-term value of a properly implemented law office filing system. Sadly, as is often the case, those firms that do not heed this advice pay a heavy price. For example, I have seen firms with voluminous amounts of paper files who do not have consistent file naming conventions or document indexing methods, and they struggle to efficiently find documents when needed—all obvious signs of poor filing and document management practices.
Everyone is different in how they choose to organize their files . Some will prefer color-coded file folders or a rainbow of well-organized files. All lawyers, regardless of personality, can benefit from a well-structured law office filing system, and a key goal of a structured filing system is to make your life easier—not harder. Additionally, a structured filing system can better support your law firm management and business administration goals.
While we can mention them here, law office technology tools like a law firm management program, document management, and other knowledge management tools can help you implement and maintain an effective law office filing system. Many firms I encounter will ask me if I am familiar with some social-based legal technology tools like Evernote or Dropbox. I might recommend Evernote to help create and organize research notes for cases out and about, and I might suggest using Dropbox to synchronize and share documents at home.
The payoff of taking the time to implement an efficient law office filing system will be well worth the effort in the long run.