Teams vs SharePoint: where should our files and lists live?

Short answer: Teams and SharePoint are not two separate places. Microsoft says the files you see on the Files tab in a team are stored in a SharePoint site. Teams is the window. SharePoint is the storage room behind it. The one rule: files in a standard channel live in the team's SharePoint site, a private or shared channel gets its own separate site, and files you send in a chat are stored in your OneDrive for Business. So the real question is not "Teams or SharePoint". It is "which team site should hold this, and who is a member of it?"

Disclosure: I build on Microsoft 365, so this guide only covers Microsoft tools.

The problem: nobody knows where things are saved

Here is a story that may sound familiar. Someone uploads a budget file in a Teams channel. Someone else saves a copy to OneDrive. A third person attaches it to an email. A month later the team asks, "Which one is the real one?"

Signs your team has this problem:

People say "I think it is in Teams somewhere."
The same file exists in three places with three different names.
Someone leaves and their files go with them.
A tracker lives in a spreadsheet nobody can find.

Part of this comes from not knowing what Teams does with your files. Once you know that, the rules are simple.

What happens when you upload a file in Teams

Microsoft explains the setup on its page about Teams and SharePoint integration. These are the main points, in plain words:

Each team is connected to a Microsoft 365 group. The group holds the team's member list.
When you create a team, a SharePoint site is created and connected to it. Microsoft calls this the parent site.
The Files tab in a standard channel is connected to a folder in the parent site's default document library.
All standard channels in one team share the same SharePoint site. Each channel gets its own folder.
Whenever you add or update a file on the Files tab, you are using the SharePoint site.

So a file in a channel is not "in Teams" in a separate way. It is a file in a SharePoint document library, and Teams shows it to you.

Private channels and shared channels are different

Standard channels share one site. Private and shared channels do not.

Microsoft says each private channel has its own SharePoint site, and only members of that private channel can access it.
Microsoft says people in the parent team and admins don't have access to a private channel site unless they're also channel members.
Each shared channel also has its own SharePoint site. Only members of the shared channel can access it.
Microsoft says a shared channel is one that "you can add anyone to, even if they're not a member of the team." It is used for broader collaboration with people outside the team.
Microsoft says channel site permissions cannot be managed in SharePoint. They show there in read-only mode and come from the channel itself.

This matters for finding things. If a file is in a private channel, it will not be in the team's main document library. Someone who looks there will not see it. A "where did it go?" question can end here.

Where each kind of file is stored

Teams chat file: Microsoft says "Files you send in chat are stored in your OneDrive for Business and only shared with the people in that conversation."
Standard channel file: Microsoft says "Files you upload to a channel are stored in your team's SharePoint folder." The Teams-connected sites page adds that all standard channels share one site, with a folder for each channel.
Private or shared channel file: stored in that channel's own SharePoint site.

Where lists live

A list is a table of records with columns for things like owner, due date and status. Microsoft's help page on Lists in Teams says all lists are saved to SharePoint and can be edited from SharePoint as well as from Teams.

When you add a list to a channel as a tab, the tab is a shortcut. The data stays in SharePoint. Microsoft's help page on adding a SharePoint list as a tab says that adding a list as a tab does not change the list's own permissions. People who do not have permission see a page where they can request access.

Who can see what

For a standard channel, access comes from team membership. Microsoft says team owners and members are automatically included in the site owners and members permission groups, and that managing access through Teams is recommended. Microsoft also says team permissions are synced with the parent site.

For a private or shared channel, access comes from the channel. Microsoft says the channel site cannot be shared separately, and its permissions are managed from the channel.

A simple way to think about it: add a person to the team, and they see the team's site. Add a person to a private channel, and they also see that channel's site.

A simple decision list

Use this list when you are not sure where something should go. Exact names may differ in your version of Microsoft 365.

Is it a document that the whole team works on? Put it in the team's Files tab in the right channel. It lands in the team site.
Is it for a smaller group only? Use a private channel. It gets its own site.
Is it a table of records, like tasks, requests or assets? Make a list on the team's SharePoint site. Do not keep it in a file.
Does the team need to see the list while they chat? Add the list as a tab in the channel.
Is it a draft only you need? Keep it in your own OneDrive. Move it to the team site when others need it.
Is it for people outside your company? Ask your admin first. Sharing rules for outside people are set by your organization.

Worked example: a project tracker

Here is one way to start. Say a team of eight wants to track project tasks. Today they use a spreadsheet saved in a chat.

Step 1. Open the team's SharePoint site. Your admin or the team owner can give you the link. Exact names may differ.

Step 2. Create a new blank list on that site, using the New button on the site's home page. Exact names may differ.

Step 3. Set up the columns. One way to start is to rename the Title column "Task" so it reads well. Add these columns:

Owner (Person)
Due date (Date)
Status (Choice)
Notes (multiple lines of text)

Step 4. Give Status number prefixes. Our advice, not a Microsoft rule: numbers keep the choices in a clear order. Type these choices exactly:

1 Not started
2 In progress
3 Done

Step 5. Move your spreadsheet rows in. For help, see "Replace a spreadsheet tracker with a SharePoint list".

Step 6. Show the list in Teams. Open the project channel, select Add a tab at the top of the page, choose Lists, then Add an existing list, and pick your list. Microsoft's help page on Lists in Teams has the steps. Exact names may differ.

Step 7. Tell the team. Post once in the channel: "The tracker is now the Tasks tab. Please stop using the spreadsheet." Then archive the old file so only one version remains.

Now the list lives on the team's SharePoint site, and people reach it from the channel. Anyone who is a member of the team can find it from either place.

If some people should see only their own rows, read "Let each person see only their own items in a SharePoint list".

What to avoid

Do not keep the only copy of a team file in your own OneDrive or in email. When you leave, others lose it.
Do not make a new team for every small topic. Each team makes its own site, and more sites means more places to look.
Do not use a private channel just to keep files tidy. Use a folder. A private channel makes a separate site that others cannot see.
Do not rename or move folders in the library without telling the team. Channel folders are tied to the Files tab.
Do not build a tracker as a file when it is really a list of records. See "SharePoint vs Google Drive for a small team" for how SharePoint compares as a home for files and lists.
Do not assume a tab is a permission. Adding a list as a tab does not give people access to it.
Do not guess about outside people. Ask your admin how sharing is set up.

Honest limits

This guide covers the standard setup. Your organization may have rules that differ, such as limits on who can create teams or private channels. Microsoft's pages do not describe every admin setting, so check with your admin if something here does not match what you see. Menu and tab names also change over time.

When to get help

You can build all of this yourself in Microsoft 365. If you would rather have it built and tested for your team, I do that. A tracker like this is a fixed price: $5,000 for one, built in 2 weeks. See "What a SharePoint tracker costs to build". Bring one example of the problem to a free call.

Tell me what's still manual

I am Al Davies. I run 250 High Street LLC and build SharePoint trackers and Power Automate flows for operations teams. I work remotely. The first call is free, and I will not try to sell you anything.

See trackers I built: Tools I built

FAQ

Teams vs SharePoint: what is the difference?

Teams is a collaboration tool where you chat about a subject or task. SharePoint is a tool for creating web sites, publishing content and storing files. Microsoft says each team is connected to one or more SharePoint sites, and those sites are where the team's files are stored.

Where do Teams chat files go, compared with channel files?

Microsoft says files you send in chat are stored in your OneDrive for Business and shared only with the people in that conversation, and files you upload to a channel are stored in your team's SharePoint folder.

Is a file in Teams stored in SharePoint?

For channel files, SharePoint. Microsoft says the files on the Files tab in a team are stored in a SharePoint site. Standard channels share the team's site and each has its own folder. Private and shared channels have their own sites.

Where do I find a private channel's files?

In the private channel's own Files tab. Microsoft says each private channel has its own SharePoint site, and only channel members can open it.

Who can see a list that I add as a tab?

Whoever has permission to the list. Microsoft says adding a list as a tab does not change the list's permissions. People without access see a page where they can request it.

Can I move files from one place to another later?

Often yes, but plan it. Our advice, not a Microsoft rule: moving files can change who can see them, because access follows the site. Move one folder as a test first, and tell the team before you start.

Should I build a list in Teams or in SharePoint?

They end up in the same place. Microsoft says all lists are saved to SharePoint. One way to start is to create the list on the team's SharePoint site, then add it to the channel as a tab so people can reach it from Teams.