Folders consist of the files that you have imported into Lightroom. I use folders as the primary organizational tool in my workflow. The folder hierarchy that you see in Lightroom is an exact copy of the files from your hard drive, only showing the files that you have told Lightroom to recognize. If you decide you want to move a file that has been imported into Lightroom, it’s best to do it from within the Lightroom program. That way Lightroom won’t get confused and give you an error message that a file is missing. If you do move a file outside of Lightroom, it’s best to go back and right click on the Lightroom image, then navigate to the file to tell Lightroom where it is located. As you can see from the image below, the folders can be set up to reflect the number of images in your folders and exactly where they are located.