I once worked for a client that would save every document with a time and date stamp in a big folder. They told me they did that to know what the latest, most up-to-date version of it was. When we implemented SharePoint, he found versioning once of the most useful features available. It also allows you to publish major and minor versions, with comments on each version available, as well as the date and time of the edits, and which user made the edits. You can also browse the version history and even restore a previous version. This actually saved my bacon many times when files would get corrupted on a client’s computer. We simply pulled the last version from the library or their OneDrive and were back in action in seconds!
Which came first, the chicken or the Egg?
When you add a document to a SharePoint library, initially they’re stored in as a standard file. If you open and edit the file, you’ll write over the original file with the changes. This setup can make keeping track of changes tricky.
If you go into the libraries settings, you can turn on Versioning. This will allow you to go into the Document Versions section of the context menu and see what was added, changed, all major and minor versions, as well as revert the document back to a previous version.
It is important to remember that when you enable versioning, each time a document is edited, it will create another copy. Each version stored is another copy of the document and will count against the site quota (amount of space allowed for the site to use). So it is best to set the amount of versions kept to be 3-5. This feature is enabled by default on OneDrive, and is accessible in the context menu on a document one your OneDrive app launcher.