Teams File Sharing: What to Do, What to Avoid

Introduction

Files are where the magic happens — and where it often falls apart.

Teams makes it incredibly easy to share documents, but that convenience can backfire fast.
Version sprawl, permissions headaches, and “where did that file go?” scenarios are common.

Here’s the good news: a few simple habits will keep your Teams file sharing clean, reliable, and scalable.

Let’s dig in.

DO: Understand Where Files Live

Chat Files = OneDrive
Channel Files = SharePoint

When you share a file in a 1:1 or group chat, it gets stored in your OneDrive.
When you upload a file to a Team’s Channel Files tab, it lives in the Team’s connected SharePoint site.

Why it matters:

• Files in Chat may disappear when someone leaves the org.

• Files in Channels stay centralized, with full versioning and governance.

Pro Tip: Use Chat for quick reference files only.
If a document needs version control or team-wide access, move it to a Channel or SharePoint library.

DON’T: Use Chat for Collaborative Documents

Chat is great for quick convos. It is not a document management system.

What happens when you post an editable file in Chat:

• Everyone downloads their own copy.

• Edits happen offline or in separate versions.

• No clear source of truth.

Instead:

• Upload key documents to a Team Channel or SharePoint library.

• Post a link to the file in Chat to drive collaboration on the central copy.

Real-world example:
One of our clients saved ~25 hours per month on proposal edits just by moving from Chat-based sharing to Channel-based co-authoring.

DO: Take Advantage of SharePoint Versioning

Every Team has a SharePoint site behind it, and SharePoint versioning is a lifesaver.

• It keeps a full history of document changes.

• You can roll back to prior versions instantly.

• It eliminates the dreaded “FINAL_FINAL_v4” naming convention.

How to use it:

• Enable versioning on your key libraries.

• Train users to use Version History instead of saving local copies.

Learn about SharePoint versioning

DON’T: Forget About Permissions

Teams makes collaboration easy — sometimes too easy.

If you invite an external guest to a Team:

• They get access to all the Files in that Team’s Channels.

• They might also access sensitive documents if governance is not in place.

Be intentional with guest access:

• Review your Teams External Sharing settings.

• Use SharePoint folder or document-level sharing when collaboration needs to be more targeted.

Manage external sharing in SharePoint

Configure guest access in Teams

DO: Share Links to Files

One of the most common mistakes in Teams is posting duplicate file copies in Chat or Channel conversations.

Instead:

• Upload the document once (SharePoint or Channel Files tab).

• Link to the central file when discussing it in Teams Chat or Posts.

Benefits:

• Everyone edits the same file.

• Changes are visible to the team.

• No version confusion.

DON’T: Sync Every Library Locally

The OneDrive sync client lets you sync Teams/SharePoint libraries to your desktop.
But syncing everything is a recipe for:

• Local storage overload.

• Version conflicts.

• Data sprawl across devices.

Use sync selectively:

• Only sync libraries you truly need offline.

• Educate users on when to sync versus when to use web access.

Rollout & Next Steps

To avoid the most common file sharing pitfalls:

• Educate users on the difference between Chat and Channel Files.

• Establish guidelines on when to use each method.

• Enable versioning on key SharePoint libraries and promote co-authoring.

• Review guest access and external sharing configurations in Teams and SharePoint.

• Encourage linking to documents in Teams conversations instead of uploading duplicate files.

Conclusion

File sharing is one of the most powerful (and sometimes frustrating) aspects of Microsoft Teams.

When used well, it enables seamless collaboration and reduces email clutter. When misused, it creates a maze of lost documents and permission headaches.

By following these simple do’s and don’ts, you can help your Teams users work smarter and keep your SharePoint content clean and secure.

Stay tuned — in an upcoming post, I will share tips for Teams and SharePoint governance to keep your entire environment clean as it grows.

For more on file sharing in Teams, visit Share files in Microsoft Teams