Method of Keeping - In horizontal system files are kept one upon the other, whereas in vertical system files are in a standing position.
Tracing the File - In horizontal, all the files above it are to be removed. But in vertical, there is no such problem.
Space - A lot of space is saved by using vertical system as compared to horizontal system.
The facility of Re-classification - Under vertical system, it is easy to make change in the classification of files, but in horizontal system, it is very difficult to reclassify.
Possibility of Extension - vertical system is flexible, as many files can be added in the existing system without disturbing the arrangement of files. Under horizontal system of filing, extension is not possible without disturbing the existing arrangement.