Apart from making projects, it is essential how you structure your project directory for efficient handling and readability of the user. The following is the ideal structure in which you must keep your files: The first folder should be the Data folder which will hold all the source files of your project. Next, the script folder will contain all the R scripts and the files with extensions .Rmd and .R. This folder will further have the following subfolders. Files folder will hold all the files with extensions such as .Rmd and .R. These files are also known as Rmarkdown files. Functions folder is optional. If you have created any custom function, you can store its file in this folder. Analysis folder comes to be useful when you have a lot of analysis files to be used in one single project. You can store the original R scripts in this folder.