A sheet handling device for accommodating, aligning and storing sheets fed from an image forming apparatus such as a copying machine is provided with front-side and rear-side aligning members for pressing the sheets stacked on a first storage means between the aligning members to stably and exactly align the stacked sheets. The front side aligning member is movable vertically or rotatable to open a sheet transferring passage so as to enable a sheet aligning mechanism in the sheet handling device to be operated in a small space, and thus, made compact. While transferring the aligned sheets from the first storage means to a second storage means, the aligned sheets are stably held by the front-side aligning member being in soft contact with the upper surface of the sheets being transferred.