I recently discovered that many organized business have color coded
filing systems. How does this work?  Are there color coded dots on the
files? Different colored file folders?  How do you break these files
down into categories?  Anyone who successfully uses this system please
help.  Where did you buy your supplies and how did you organize the
categories?  Thanks

Colors give you an additional and easily recognizable classification system.
Let's say, you have filing drawers for all your accounting records. 
If you use colored paper for the tabs(riders) on the files, you can
identify immediately that a file is that of a customer (green),
supplier (yellow), bank (blue), etc., etc.
This helps assure that a supplier's file doesn't get put away amoung
customers' and also allows you to know which drawer to open without
first reading the name on the file, since the label on the drawer is
also in the appropriate color.

Does that help?

This does help very much, and I thank you.  Do you then use plain
manilla folders in normal green haning file folders...and just put a
color coded tab on top or do you color the folders and hanging folders
also?   For example, my business is small, right now my drawer
consists of receipts for household bills, company expenses, projects I
am working on, medical records company current receipts.  Are these
the type of categories I would divide this into? Currently I ahve
greenhaning folders, with manilla inserts inside.  I do appreciate
your help.  I was going to hire an organizer to help me, but it would
have been very expensive.

thanks

Greetings,
Just use the folders you have and find colored paper for the tab
labels.  Where I live, one can buy this in perferated strips; don't
know about the States or where you are.  Just pick a color for each
category that has several files.
Good luck.