Right now, 5" or more is left alone til I get to it. I'm making a batch of 2" & 2.5" squares out of anything that I can only get that size out of, anything longer than that, I'm just cutting into 2" or 2.5"strips so I can cut them to size as needed. Anything at least 3/4"wide x 4" or more I cut into the widest strip I can (doesn't have to be a particular size, just the widest I can get) and put it in my narrow strip bin to use for string quilts. If it's too small for a string or a 2" square, I put it into a bin of smalls to use to make some pieced fabric. This site shows an easy way to do it.
http://www.15minutesplay.com/p/tutorials.html