9.2
File Organization in a Paperless or Less Paper Office

Having organized files is key to running an organized practice. We refer to our client files every day. Whether they are digital files in a file folder system (with or without searching software), digital files contained in a document management system or physical/paper files, it is imperative that any portion of the file can be easily accessed and is kept confidential (Code of Conduct, Rule 3.3-1). This resource will examine these different options and highlight the important common aspects.

Regardless of the method you choose, it is helpful to create a standardized system for file organization and use it consistently. We suggest that your plan should include separate file folders (or brads/pegs if using paper files) for correspondence (this includes all incoming and outgoing correspondence in chronological order), ethical and financial considerations (such as the conflict check, the client’s intake information, the retainer letter, your client’s identification and verification documents, statements of account that have been issued, copies of cheques or digital withdrawal/transfer form and any receipts of payments on account), draft documents, pleadings (you may wish to have subfolders for draft, final and filed), client documents, disclosure, research and miscellaneous to catch anything else. Often lawyers who have worked with paper files previously, simply convert their paper file organization into a digital format, such that it looks much like the above.

It is recommended that you maintain one true file that you can rely on. This could mean that you save everything digitally without fail (and scan it to save it when you have to) so that you always know that every document and piece of information that should be on the file has been digitally saved. But this does not prevent you from having a working copy that is paper. What it means is that when the file is closed, you can readily shred your working copy because you simply printed off these materials from your digital file, which is the true file. Some lawyers prefer to have an entirely physical/paper file which contains all documents and information in a physical form. This lawyer may digitize the file eventually, but that might not occur until the file is complete and closed. Some may prefer a hybrid paper file and digital file system. If this is the case, it is important to determine exactly what is contained on the paper file and what is contained on the digital file. This is a little more difficult to track, but it can be done as long as there is unequivocal consistency.

Although the above options sound simple enough, there are many processes that are relied on to create a standardized system and there are nuances within each option to consider when deciding which option to go with.

Is having a paperless practice realistic? Yes, or at the very least having substantially less paper is realistic, but it takes some work to research, develop and establish processes to support it.

Advantages of digital files:

  • easier to find files digitally (searching around for a paper file is time consuming);
  • more people can access a digital file at one time;
  • easier to collaborate;
  • saves money compared to physical storage of closed files;
  • greater mobility;
  • organized office;
  • supports a disaster plan; and
  • saves trees.

If you are going to make a switch to digital files or if you are just creating your processes and file organization systems for the first time, it is recommended that you digitize all incoming documents in the same format, a portable document format (PDF) that is searchable (we will explain this further on). You may also want to consider whether it is preferable to store email in your client’s file folder as well, in a searchable PDF format, so that your client’s file is all located in one place.

Here are four main considerations:

  • Hardware
  • PDF Storage & OCR Software
  • Electronic Filing Systems
  • Back Up & Security

Hardware

Switching gears from a paper practice to a less paper practice requires careful consideration of the hardware that you will need. Although it is difficult to imagine, you may no longer require a large copier/scanning machine. Maybe money would be better spent on individual scanners that can be accessed at each desk or more frequently throughout the office? And on mobile scanning apps? If you will be drafting, editing and reviewing documents digitally, you may wish to consider adding a monitor or two so that you can display what you need to with ease. Would using a tablet/ultrabook or laptop make saving notes easier? It remains imperative to document meetings and phone calls with your client and opposing counsel or others involved on a file. If it is easier to make these notes digitally as you go, this is an option. Otherwise, you can still write them out on paper, but you will need to create a process to ensure that they are then scanned and saved on the digital file every time.

PDF Storage & OCR Software

Most of the incoming information/documents will likely be saved in a PDF, and some of your internal documents as well. Having a PDF that is capable of being searched is more desirable than if it is not searchable. It is important to understand the difference. A scanned and saved PDF is an image only PDF and provides a snapshot that is not searchable. An image and text PDF, such as a PDF that you have authored, creates more layers of text and is more useful as it is more searchable. It is possible to take an image only PDF and make it searchable by using optical character recognition (OCR) software. If you OCR an image only PDF, the software interprets the graphical image as text characters and makes it searchable.

Some OCR software options you may wish to consider are Adobe Acrobat Pro (this is not the free version), Abbyy FineReader, Nuance OmniPage or Nuance PowerPDF Advanced. You may want to research whether any of these options, or others, are capable of also saving emails and attachments to PDF.

Electronic Filing Systems

It is possible to create a plain file folders system (with or without search software) or you can use a document management system (software) to save documents on your client’s digital file. Whichever system you choose, it must have the ability to hold all internally created documents and all documents received externally. You will need to scan and save external documents that you have received in paper form. You can also store your meeting and telephone notes and if you choose to, email correspondence and attachments together in one place.  

Folder System

Your electronic filing system may mirror the organization you used previously with your paper file. If you use consistent file naming conventions you can ensure that they are in chronological order by placing the date first in the title of the document being saved. You may include folders and sub-folders as follows (with material being saved in chronological order):

Ethical and Financial

  • record of conflict check
  • client identification and verification documents
  • retainer letter
  • statements of account

Correspondence

  • received from your client
  • sent to your client 
  • received from opposing counsel  
  • sent to opposing counsel

Court Documents

  • draft documents
  • final documents
  • filed documents (with index)  

Search Software Options

You may wish to purchase software to assist you in searching for documents. A few Windows options are Copernic Desktop Search Professional, dtSearch, Windows Vista/7/8/10 Instant Search and Filehand. A couple of Apple options are Spotlight Search (Mac OSX) and Houdahspot.

Document Management System

A document management system (DMS) handles all document types and automatically converts them to image and text PDFs allowing for full text searching. Document management systems integrate with most word processors, have email integration and allow for remote access.

The following are a few options to consider:

  • Worldox Cloud
  • NetDocuments
  • iManage Work
  • OpenText

Your accounting/practice management software option may also have a document management system built in, but it may not offer all of the functionality that the above options have. 

You will recognize that there are common elements and obligations on files regardless of what format they take. For an overall review of the common elements that should present on every file (which often correspond with your Code obligations), please view the Practice Management 101: Life Cycle of a File webinar which covers opening a file, working on a file and closing a file.

Backup & Security

It is critical to maintain a reliable back up system for your folders and documents. An automatic/unattended system is best, the backup should occur frequently (ask yourself how much work you are willing to lose) and you should be able to test the back up regularly to ensure it is doing what it is supposed to be doing.

Lawyers are required to protect their client’s confidential information (Rule 3.3-1 of the Code).

3.3-1   A lawyer at all times must hold in strict confidence all information concerning the business and affairs of a client acquired in the course of the professional relationship and must not divulge any such information unless:

a)        Expressly or impliedly authorized by the client;

b)        Required by law or a court to do so;

c)        Required to deliver the information to the Society; or

d)        Otherwise permitted by this rule.

Using the cloud is not prohibited, but disclosure of confidential client information is. Because client confidentiality cannot always be guaranteed when using technology, you must inform your clients and obtain their consent for email communication and for cloud usage outside of Canada: see Personal Information Protection Act, S.A. 2003, c P-6.5, ss. 6, 13.1.  It is recommended that you include this request for consent in your retainer letter, so it occurs at the beginning of the relationship.

Due your due diligence when using the cloud and consider encryption, accessibility by administration and also location of storage. Review The Basics of Cloud Computing resource for further information.

Wrap Up Summary:
  • Formulate a plan/timeline/budget.
  • Manage change and provide training.
  • Write it down/create protocol.
  • Update Retainer Letters.
  • Pick a fixed date for the final transition.  
  • Always consider the Code of Conduct

Last modified: Friday, 21 April 2023, 9:27 AM