My sewing room closet has wire baskets and I sort my fabric according to color regardless of yardage. My backing fabrics are stacked together. One basket is for crib quilts. I have a scrap box where all the small or leftover scraps go. Any leftover squares are placed in baggies in the scrap box
along with leftover strips. I do not buy fatquarters only yardage. Everyone organizes differently, you need to organize however is the most efficient for you when you need to pull fabrics for quilts.