I use my ruler to fold anything larger than 1/2 yard. Approx. 1/4 - 1/2 yard cuts are stored separately. I don't bother folding them. Small scraps are stored separately and nothing smaller then 2 inches. I used those three-drawer plastic bins--a small size for the small scraps. All sizes are sorted by color a la ROY G BIV, black/brown, white/gray, and multi. I don't think it males sense to iron fabric until you're ready to use it. It just gets wrinkled again. Works for me. Ultimately what works for one won't work for another. There is no right or wrong. Just do what makes sense for your own personal needs.