I agree with the comments on not cutting it up - you can make wonderful quilts with collections of 1/2 yards and some with 1/3 yards 9like buggy barn or crazy quilt type patterns) - I recommend the book series 6 halves make a whole. 6 half yards and some background will do amazing things.
I organize mine by color. anything purchased specifically for a project in mind gets wrapped in a "fabric pack (tied together with an old 2.5" scrap so I dont use it elsewhere), 1/2 yard or larger not specifically purchased for a project goes on the shelf, anything that is a FQ goes in little organizers I bought at Ikea. anything between 9 inches to 12 inches wide (regardless of length) is folded by color and stacked on the shelf. anything less than 9 inches wide is considered scrap to me and I usually cut into 5" squares and any remaining in to 2.5" strips. now, what do I do with all of the scrap? truth be told, I've been quilting for 20 years and have not yet made a scrap quilt with my scrap - some day I will :-) I long ago gave up saving every tiny little remnant (unless it was batki, I can't part with those :-). I also keep one small little box of "leaders and enders" next to my machine. I try and do this after every project, but honestly, usually I let the scap pile up and then when i want to sew but am feeling a little unsure of what to do or seeking inspiration, i'll cut the scraps and see all the great fabrics I've used, and that gives me inspiration to think of something new to work on!
Have fun with your fabric!