First of all, you can stop some of the incoming paperwork before it enters your home. Here is one site that offers free guidance:http://www.obviously.com/junkmail/
This alone has made our paperwork sooooo much more manageable!!!
Then, it depends on how your family functions.... For us:
~ Mail is retrieved once a week and the box is never full anymore. 95% of what we receive is what we need or want now. This saves so much time and frustration! I open the mail on the walk from the mailbox to our house. I recycle the outer envelopes and any extraneous stuff immediately. The real stuff we need goes into a tray on the desk where I do finances once a week.
~ DD brings home a folder of school work once a week. It gets handled ASAP. Her school offers certain things via email or online and I opted for that whenever possible. Unwanted items get recycled immediately. Items to show Daddy when he gets home stay on his placemat until dinner. He looks at them and we recycle immediately thereafter. The things that need further attention go in the above-mentioned tray. The random items we need to keep, but don't need further action go into a folder with page protectors by category: district, school, class, daughter. I empty that out at the end of each school year and recycle most of it. The few items we keep go into the scrapbooking area of the family office (large envelope by calendar year).
~ As I do the finances and paperwork each week, I recycle anything no longer needed. The items needed get filed by broad category. After I do taxes each year, I go through the files and shred/recycle whatever we don't need any longer. I opt for electronic notifications on many things to avoid the paperwork altogether. Our broad categories include: auto, bank, credit cards, insurance, investments, receipts, taxes, utilities, etc. ALL related items are in that labeled hanging file folder. I divide companies within the hanging file with file folders, but I don't label those. Companies change, the category doesn't. I keep the companies in alpha order, so it is easy to figure out.
~ Art work and crafty stuff from children can be daunting to handle. I have two paper portfolios from DD's school (K and 1st) that we keep all flat artwork in (size 18x24, I think). Bulky stuff gets photographed with the child and named in iPhoto. It gets displayed for awhile, then given as a gift to grandparents or repurposed somehow or recycled. A lot of flat artwork is handled that way, too. We keep favorites.