Active files are current documents or data you regularly access and edit for daily tasks. Archived files, in contrast, are older records retained for historical, legal, or reference purposes but no longer needed for routine work. The key distinction lies in usage: active files are "live," subject to frequent changes, while archived files are "frozen," preserved in a final state. Active files typically reside in your primary storage systems, while archived files are moved to separate, often lower-cost, storage optimized for long-term retention and efficient retrieval.

For example, in accounting, the current year's ongoing financial spreadsheets are active files, actively edited throughout the year. Once the fiscal year closes and the financial statements are finalized, they become archived files, moved to a secure repository. Similarly, a design agency stores active files like ongoing client project assets on a shared network drive, while completed project files from previous years are archived on a dedicated system or cloud archive.

Using archived files frees up expensive primary storage resources and improves performance for active work, while ensuring compliance. However, retrieval might be slightly slower than accessing active files, and specific retention policies govern archives. Modern systems increasingly blur the distinction by offering efficient, searchable tiered storage where archival can be almost seamless.