Microsoft 365 September 2026

If your business runs on Microsoft 365, you already have two places to keep files: OneDrive and SharePoint. Most people are never shown the difference, so files end up wherever is quickest, spread across OneDrive, SharePoint, Teams and the desktop.

That is how the everyday headaches start. A file nobody can find. A document only one person can open. A scramble to recover someone's work after they leave. Here at Agile IT, it is one of the most common tidy-ups we do for businesses across the Mornington Peninsula and Melbourne's south east, and the rule for where things should go is simple once you know what each tool is for.

What each one is for

OneDrive is your own space. Think of it as the cloud version of the Documents folder on your computer: your working files, private to you unless you choose to share them. It is the right place for drafts and anything only you need.

SharePoint is the team's space. It is built for files with shared ownership, the documents your team, department or whole business works on together. Microsoft's own advice is refreshingly plain: if you are working on something by yourself, save it to OneDrive; if you are working as a team, save it where the team works.

Where Teams fits in

Microsoft Teams throws a lot of people, because it looks like a third place to store files. It is not. When you upload a file to a Teams channel, it is stored in that team's SharePoint site. The Files tab in Teams is simply a window into SharePoint.

So if your team works in Teams, your shared files are already in SharePoint, whether you realised it or not. That is a good thing. It means those files have shared ownership and do not belong to one person's account.

So where should your files live?

Here is the rule we give clients to keep it simple:

  • If it is your own draft or something only you need, keep it in OneDrive.
  • If the team needs it, more than one person works on it, or it is a client or project file, put it in SharePoint, or the Teams channel for that work, which is the same thing.
  • Do not leave important shared files sitting only on someone's desktop or only in their personal OneDrive.

Sharing files the right way

Where a file lives also changes how you should share it.

When you share a file from your OneDrive, you are inviting people into your personal space, usually with a link tied to your account. That works, but the link depends on you. If you leave, or the file moves, those links can stop working and whoever relied on them is stuck.

In SharePoint or a Teams channel, the right people already have access, because the files belong to the team rather than to you. You can point a colleague to the folder and they are in, with no one-off links to manage.

It is also worth sharing a link rather than emailing a copy. When everyone opens the same file in OneDrive or SharePoint, they are all looking at the current version, and you avoid ending up with five slightly different copies attached to five different emails.

Why this matters

Putting files in the right place saves real trouble later.

Take what happens when someone leaves. Their personal OneDrive is not shared by default, so any important work kept only there can be hard to reach. Microsoft holds a departed user's OneDrive for 30 days by default and gives their manager access, but that turns into a race against the clock. Files kept in SharePoint stay with the team no matter who comes or goes.

It also makes files easier to find. When the team's documents live in one shared SharePoint library, people know where to look instead of hunting through inboxes and personal drives.

And it helps you recover from mistakes. Both OneDrive and SharePoint keep older versions of your files and a recycle bin, so if a document is overwritten or ransomware scrambles your files, you can roll back to a clean copy rather than starting over.

How to get it right

  • Put shared work in SharePoint or Teams. Anything the team works on together belongs in a shared library. Keep it out of one person's OneDrive.
  • Keep OneDrive for your own files. Drafts and personal work are fine there. Just do not let it become the only home for something the team needs.
  • Get files off local desktops. A file saved only on a laptop is not backed up, is not shared, and is gone if the laptop is lost. Move important files into OneDrive or SharePoint. You can still work from your computer the way you always have: the OneDrive app keeps a copy on the device for offline use and saves your changes to the cloud automatically.
  • Agree where things go. A simple, shared rule, like "client files live in the client's SharePoint folder", saves endless confusion later.
  • Use version history when you need it. If a file is changed or deleted by mistake, you or your IT provider can restore an earlier version rather than redoing the work.

If your files are currently spread across everywhere and nowhere, that is exactly the kind of clean-up we handle for clients. Start with a conversation and we will help you set a clear, simple structure your whole team can follow.

Frequently asked questions

What is the difference between OneDrive and SharePoint in one line?

OneDrive is for your own work files. SharePoint is for files your team shares.

Where do files in a Teams channel get stored?

In SharePoint. Every team has a SharePoint site behind it, and the Files tab in a channel is a view into that site. Uploading a file to Teams is the same as putting it in SharePoint.

Should I keep work files on my computer's desktop?

Try not to, for anything important. A file only on your desktop is not shared or backed up, and it is gone if the device is lost or breaks. Save it to OneDrive or SharePoint instead, where it is protected and reachable.

What happens to files in someone's OneDrive when they leave?

By default, Microsoft keeps a departed user's OneDrive for 30 days and gives their manager access, and that window can be extended if it is set up in advance. It is recoverable, but it is far easier if the shared work was in SharePoint to begin with.

Can I get back a file that was deleted or changed by mistake?

Usually, yes. OneDrive and SharePoint both keep a recycle bin and older versions of files, so you can restore a deleted file or roll back to an earlier version. Your IT provider can help if you cannot find it.

Adapted with permission from The Technology Press.