I've always kept files by the month. Then there is only 12 files. If there is a question about an invoice all you have to do is ask what month it's dated. Each file has a lot of invoices in it. But some months are not as active as other months. This way you can look at the thickness of the folder and tell which part of the year you have the most activity with out using a bar graph or chart.
I tried it by the vendors but I had too many file folders and some files only had 1 or 2 invoices in it. Didn't make sense to only have one or two invoices in a file folder.
But that's just me, to each his own!! What ever works best you just have to experiment!
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