You get instant recognition that file folders are in the proper place when you use color-coded labels. File folders with alpha or numeric labels without color code can easily be mis-filed and virtually lost in a large filing system. Avoid that problem with color-coding your labels.
You have probably seen color-coded labels in your local doctor’s office or as props in a TV medical drama. While healthcare is a big user of color-coding, virtually any office filing system is improved with color-coding.
There are many benefits to color-coding files. First, blocks of color, associated with the same character or number (i.e., “A” or “1” ) are grouped together. This assures all “A”s are in the same location. Since “B” is represented by a different color, if a folder that begins with “B” got mixed in with “A”, the color difference would be immediately apparent. If the file was simply text, there would be no visual clue that there is a problem.
Can you spot the misfile?

Files without color code.

Files with color code.
Improved Business Info Reliability
Color-coding also improves the reliability of business information because it is easier to find a file on a shelf and proactively prevents misfiles. Data is found quicker and more reliably.
Better Retention, Purging Actions
And if you use date color-code notation (year codes) you can more quickly and reliably identify records that can be purged or moved to off-site record storage. For example, a doctor’s office could add a color-code year to the patient’s file label and update it as patients are seen by the physician. Then, on a yearly basis, the office staff can quickly identify patients that have not been seen for some time and move those records to off-site storage, freeing space in the current patient record area.
Better Space Utilization
Another key benefit is an increase in the volume of records that can be stored in the available space. Part of the increase in space efficiency is the ability to file records above eye level. Lateral & vertical file cabinets max out at 5 drawers because above this, you cannot see into the drawer. Side tab labeling lets you go 6, 7, 8 or sometimes 9 levels high, adding 40% or more storage in the same number of square feet.
Plus, if you use high density mobile storage (moving shelves), you can literally increase storage capacity of a room more than 330%.
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