If using SharePoint to create content structure, it’s important to make the correct choice between using a document library or a folder to organise content.

To make that decision easier, this article looks at the main differences between using a SharePoint document library vs folders and identifies key areas to consider when it comes to document management in SharePoint:

Choosing A SharePoint Document Library

A SharePoint document library offers a higher degree of sophistication, providing users with the capability to tailor content organisation and storage to suit organisational needs. This enhanced flexibility leads to a more productive and effective information management system.

Within document libraries, users can leverage a range of essential options, including advanced metadata management for precise file tagging, version control to track document changes and history, robust collaboration tools enabling seamless co-authoring and real-time editing, and granular permissions for secure access control.

Moreover, document libraries support customisable views, allowing for tailored content displays based on specific criteria, which contribute to streamlined workflows and improved business productivity.

Some of the main options found in document libraries include:

• Templates: Templates work at the document library level, so if working with multiple data sets that require different templates, it’s good practice to create two libraries instead of folders.
• Sensitivity labels: Sensitivity labels provide access to documents based on permissions. They can’t apply to folders, so it’s only suitable for document libraries or individual files.
• Search visibility: Toggle visibility for document libraries.
• Audience targeting: Select specific audiences to target using document libraries to ensure that the right people can access and view documents.
• Information rights management: When dealing with compliance or data privacy, information rights management gives users the power to control the library's contents. This stops certain users from accessing documents or editing them.
• Version history: Track and store different versions of a file as it’s edited and updated over time.

These versatile features make SharePoint document libraries invaluable tools for document management at scale

Choosing A SharePoint Folder

A SharePoint folder is the most straightforward way to organise content in SharePoint. They serve as simple containers for files, enabling users to arrange them either by name or by setting permissions.

The hierarchical structure of folders and subfolders allows for a more systematic categorisation of files, significantly enhancing the ease of locating specific documents. Moreover, folders can be utilised to manage access privileges efficiently, controlling who can view, edit, or delete files within them.

This straightforward yet effective organisation method provides users with a convenient and accessible approach to structuring their content in SharePoint.

SharePoint Document Library Vs Folder: When To Choose Each?

When setting SharePoint up, there's a few things to consider to get the architecture right:

Consider Search and Findability

One of SharePoint's greatest strengths is its search capability. If users regularly need to find documents based on customer names, project numbers, document types, dates, or other criteria, document libraries provide a significant advantage through metadata and custom views.

Folders rely on users knowing exactly where a document has been stored, which can become problematic as structures grow more complex. Document libraries allow users to filter, sort, and search content dynamically, making it much easier to locate information quickly without navigating through multiple folder levels.

Consider Collaboration Requirements

If documents are primarily accessed by individual users or small teams, a folder structure may be sufficient. However, organisations that rely on collaboration should consider document libraries.

Document libraries support co-authoring, version control, approval workflows, document check-in/check-out, and integration with Microsoft Teams and Power Automate. These features help teams work more efficiently while maintaining governance and reducing the risk of duplicated or conflicting files.

Consider Security and Permissions

Managing permissions can become increasingly difficult within complex folder structures. As organisations grow, different departments, teams, and projects often require varying levels of access to information.

Document libraries provide greater flexibility for applying security controls, retention policies, sensitivity labels, and compliance settings. While permissions can be applied at folder level, excessive permission customisation often creates administrative overhead and can make ongoing governance more difficult.

Consider Future Growth

Many organisations initially choose folders because they are familiar and easy to understand. However, what works for a few hundred documents may become problematic when managing tens of thousands.

If content is expected to grow significantly, implementing a document library structure from the outset can help avoid future migration and restructuring projects. A well-designed library with metadata provides greater scalability and ensures SharePoint remains organised as the business expands.

So Which Is Right?

To conclude, SharePoint document libraries offer far greater capabilities in terms of organising data. Folders may be a better choice if a smaller number of documents simply need to be grouped. However, for higher levels of organisation around projects, departments, topic categories and overarching topic areas, document libraries are a more suitable choice.

Of course, the beauty of SharePoint is that you can use folders within document libraries. This allows you to create a hybrid approach, leveraging the hierarchical organisation of folders while still benefiting from the extended capabilities of document libraries.

If you're still unsure of the approach that's right for your organisation long-term, it's worth talking with a SharePoint consultant who can guide you in creating a scalable SharePoint structure that will work for you long term.

Need Help Optimising SharePoint?

Choosing between SharePoint document libraries and folders is only one part of creating an effective document management strategy. Many organisations inherit SharePoint environments that have evolved organically over time, resulting in inconsistent structures, duplicated content, poor search experiences, and challenges around governance and user adoption.

Akita's SharePoint consultants help organisations design, implement, and optimise SharePoint environments that support collaboration, improve information management, and make it easier for employees to find the information they need. Speak with us today.