| HORIZONTAL FILING | VERTICAL FILING |
| The files are kept one above the other on the table or racks i.e in flat position | The files are kept back to back either in hanging or suspended inside a drawer in standing position. |
| No special equipment is required. | Special equipment like a filing cabinet and folders are required. |
| Files are kept open in racks or shelves | Files are kept under lock and key |
| It is less costly as equipment and material required is cheap | It proves to be costly as cabinets and folder are to be purchased. |
| It occupies more space as racks and almirahs are to be kept for keeping the files. | It occupies less space as one filing cabinet can hold many files |