Conquer Document Chaos With This Digital Storage Hierarchy
Post #40: Don't struggle with clutter - get your files organized with this comprehensive hierarchy for storing all of your digital documents.
In this Substack, I will walk you through the process of starting, operating, maintaining, and — if needed — selling or closing your own small business.
Today, I am going to give you something that I only wish I had figured out a decade ago: a complete digital file storage hierarchy for organizing your important business documents.
Don’t succumb to saving your digital (and paper) files in a disorganized mess on your computer’s desktop, as a loose list in the documents folder, or lost in a sea of email.
“Search” won’t save you.
👊 Fight Choas and Clutter with Systems.👊
What you’re gonna get in this post:
Why it’s easy to end up in Chaos
The importance of starting with a good file storage hierarchy
What is a file storage hierarchy, anyways?
My recommended file storage hierarchy for the self-employed
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Bootstrap Your Business Workflow - a step-by-step guide with the links to all of the top daily posts that walk you through the process from scratch
BYB Book Recommendations - a collection of the best business books to help you on your entrepreneurial journey
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BYB Documents - a repository of guidance for important business documents with instructions and guides to use them in your self-employment journey
Chaos Happens
When your business takes off and it’s all about keeping your clients happy and your head above water, your files and documents will end up in the last car of this crazy rollercoaster ride, white-knuckling the ride to the end...
How do I know this??!?
BTDTGTTS —> 👕
I’ve spent years struggling to manage:
all of those little pieces of paper on your desk that you can’t toss
document templates that you create and end up having to edit (and then forget which one is the latest version)
signed contracts with the digital tracking to prove that the contract is the executed version (or is it the unsigned draft?)
digital logo files from your designer that include all of the font files and stuff you can’t open anyways
letters from the IRS or your local secretary of state with the EIN and other important data about your business (that are hard to get again if you lose them)
From a 25+ years long career (!!!) in the tech sector - mostly as an information architect - I have leveraged my own professional expertise to build a better system.
Start with a File Storage Hierarchy
If you are early in your self-employment journey, or maybe you are at your wits end with not being able to find important documents when you need them…
..Now is the Time to Start.
You may not have a need for all of the categories or sub-categories that I am proposing for your new file storage system, but you can save this article and build as you go.
💡 Tip: As a reminder, certain documents need to be saved for longer than others. Review my post on Records Retention for more details.
What is a File Storage Hierarchy?
As part of your record-keeping system, a hierarchy is just a tree of categories under which certain kinds of documents can be organized for easy access in the future.
Imagine…
If you had a physical office long before computers were available, you would have a whole bunch of file cabinets in a big room.
Whenever you needed to find a document, you would go into that room, find the right filing cabinet, choose which drawer to open, and then find the file that you need.
But, everything is digital now.
Instead of filing cabinets in a giant room, you have a hard drive on your computer, a server in a data center, or virtual space for your files in the cloud.
The commonality between these two scenarios is how the files are organized so that you can find the ONE that you need when you need it.
Like a tree with branches, a digital file storage hierarchy organizes files logically.
Setup the File Storage Hierarchy
(…for the self-employed & small business owner)
There are 24 categories in this hierarchy.
This is a somewhat comprehensive list, but you may still find the need to modify it to fit your business’s operations.
And if there are categories you don’t need, just ignore them (for now).
👉 Be sure to scroll to the bottom to read more about the rationale for this organization.
So, here it is….
1. Business Strategy & Planning
Business plan (if applicable)
SWOT analysis and competitive research
Growth plans and expansion strategies
Industry research and market analysis
Long-term vision and roadmap
2. Taxes & Compliance
Tax Returns (organized by year)
Quarterly Estimated Tax Payments
Payroll Tax Filings (if applicable)
1099s, W-9s, and Other IRS Forms
Sales Tax Filings (if applicable)
State and Federal Compliance Filings (e.g., annual reports, FinCEN BOI report, franchise taxes)
Audit Documentation & Correspondence
3. Administrative
Business registration (LLC, S-Corp filings, EIN confirmation)
Operating agreements and bylaws
Business licenses and permits
Insurance policies (general liability, E&O, workers' comp)
Banking documents (account details, loan agreements, credit cards)
Payroll records and payroll service agreements
Compliance documents (state/federal filings, annual reports)
Meeting minutes and resolutions
4. Accounting & Finance
Invoices (sent and received)
Business receipts (organized by year and category)
Profit & Loss (P&L) statements and financial reports
Budgeting and forecasting spreadsheets
Bank statements and reconciliation reports
Expense tracking reports
Accountant communications and filings
5. Contracts & Legal
Service contracts and agreements
Vendor and supplier contracts
Legal correspondence
Terms and conditions for business services
Dispute resolution and legal case files
6. Clients & Projects
Contracts and service agreements
Project deliverables and work in progress
Invoices and payment records
Meeting notes and correspondence
Proposals and quotes
Feedback and testimonials
Project timelines and Gantt charts
Team assignments and roles
Final reports and post-mortem notes
7. Staffing (People)
Subcontractor agreements
Independent contractor NDAs
Subcontractor records (W-9s, agreements, pay schedules)
Employment Agreements (W2)
Onboarding documents and training materials
Timesheets and payment records
Performance reviews and feedback notes
Benefits and compensation details (if applicable)
Off-boarding and termination records
8. Business Assets (Physical)
Office furniture and fixtures
Printers, copiers, and scanners
Computers and monitors
Office equipment (phones, conference devices, accessories)
Storage and shelving
Asset inventory and depreciation records
9. IT & Computing (Digital Business Assets)
Software licenses and subscriptions
API keys and integration documentation
Training and user manuals
Technical support and troubleshooting docs
IT security policies and access control records
Productivity and collaboration tools
Website hosting, domains, and DNS settings
10. Cybersecurity & Privacy
Cybersecurity policies (e.g., password management, encryption protocols)
Data privacy policies (GDPR, CCPA, etc.)
Employee privacy agreements
Risk assessments and security audits
Incident reports and breach documentation
Security awareness training materials
Third-party security audits and reports
Antivirus, firewall, and malware prevention logs
Privacy and security compliance documentation
Data protection strategies (e.g., data anonymization, access control)
11. Forms, Templates & Master Documents
Business letterhead & branded templates
Invoice templates
Contract templates (client agreements, NDAs, subcontractor agreements)
Proposal and quote templates
Standard email templates
Checklists and workflow templates
Budgeting and financial planning templates
Marketing and social media content templates
Presentation slide decks and reports
Frequently used forms (e.g., W-9s, client intake forms, onboarding forms)
12. Communication & Collaboration
Email correspondence and archiving
Team communication logs (Slack, Teams, etc.)
Client communications (emails, meeting notes, calls)
Internal meeting minutes
Communication policies and protocols
Communication training materials
13. Marketing & Branding
Logos, branding guidelines, and design assets
Website content (copy, images, backups)
Social media content and calendars
Advertising campaigns (Google Ads, Facebook, etc.)
Email marketing materials
Promotional materials (flyers, business cards, brochures)
Press releases and media coverage
14. Operations & Procedures
Standard Operating Procedures (SOPs)
Templates and reusable business documents
Workflows and automation guides
Training materials and guides
Vendor and supplier information
IT and cybersecurity policies
Internal FAQs and troubleshooting guides
15. Research & Development
New product or service ideas
Market research reports
Testing and iteration documentation
Product/service development roadmaps
Industry trends and innovation reports
16. Health & Safety
Workplace safety procedures and guidelines
Health protocols and guidelines (COVID-19, for example)
Emergency contact information
Incident and accident reports
OSHA compliance documents (if applicable)
17. Customer Support & Service
Customer support tickets and issue resolution
Client service level agreements (SLAs)
Client satisfaction surveys and feedback
Customer complaints and resolutions
FAQs and troubleshooting guides
18. Risk Management & Insurance
Risk assessments and mitigation strategies
Insurance claim records
Business continuity planning
Liability waivers and documents related to business risk
Governance Policies
19. Environmental & Sustainability
Environmental policies and sustainability initiatives
Green certifications or standards (if applicable)
Reports on energy usage and waste management
Corporate social responsibility (CSR) initiatives
20. Vendor & Supplier Management
Vendor contracts and agreements
Supplier invoices and purchase orders
Contact information and communication logs
21. Disaster Recovery & Backup
Data backup policies
Cloud storage and local backup plans
Recovery plans for digital business assets
Emergency business continuity plans
22. Intellectual Property
Copyrights, trademarks, and patents
Proprietary business processes and systems
Confidential business models or strategies
23. Miscellaneous / Reference Materials
General business reference materials
External research, white papers, and articles
Miscellaneous files that don't fit elsewhere but need to be saved
24. Archive
Past financial records (organized by year)
Completed client files (organized by client)
Expired contracts and legal documents
Old marketing and branding materials
Former employee and subcontractor records
Legacy business documents
Organization Rationale
Top-Level Business Operations: Categories like Business Strategy & Planning, Taxes & Compliance, Administrative, and Clients & Projects are grouped together to ensure that you can find documents related to strategic operations, compliance, and client-facing tasks in the first few sections.
Supportive Infrastructure & Assets: Next come Staffing, Business Assets, IT & Computing, and Cybersecurity & Privacy, which are all related to running your company, whether it’s managing employees, physical assets, or safeguarding digital infrastructure.
Client Services & Marketing: After that, Communication & Collaboration, Marketing & Branding, and Customer Support & Service help you access all customer-facing materials, communication logs, and branding resources.
Operational Continuity: Categories like Operations & Procedures, Research & Development, Health & Safety, and Risk Management & Insurance help maintain smooth and secure operations.
Miscellaneous & Archive: Finally, Risk Management, Intellectual Property, Disaster Recovery, and Miscellaneous are last, keeping legacy and less-accessed documents in their appropriate sections.
Don’t wait to set up a File Storage Hierarchy.
Stop the Chaos before it begins!
Next Steps
In my next post, I am going to write about Invoices and how to manage invoicing when you need to get paid by your clients or customers.
The money needs to come from someplace!
Continue the Journey with Post #41 —>
This is a great list and also overwhelming. 😂 I’ve been in business over a decade and have created a home grown version but this is better and also, I don’t know when I’d sort all my files, lol.