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In this tutorial, Kallstrom demonstrates how to add columns in SharePoint to categorize information. In the SharePoint document library, you can easily create columns by clicking the "create column" button on the library tab or using the "quick edit" feature. Adding a column, such as "year," allows you to categorize documents by year instead of creating folders. You can enter and edit data efficiently in the quick edit view, making it easy to categorize and organize information.