Wipe any debris off of the bits with a cleaning rag. Use a small wire brush to help scrape off any stubborn build-up inside the grooves of the bit.
Place a piece of flat, soft wood on a tabletop. Hold the auger bit by the back end so the tip or screw digs slightly into the wood. This will help prevent the blade from turning as you sharpen it.
Put on safety glasses. Run the file over the front part of the bit, just behind the screw at the very tip. This is the main cutter. Run the file over the edge of the main cutter from the back toward the front. Push the file forward, but do not pull it backwards, this can damage the auger blade. Slide the file forward against the main cutter several times, but do not strip off so much of the bit that the cutting angle is altered.
Place the auger bit upright in a table vice. Tighten the vice so the bit does not move.
Find the cutting spur, which is the bump located on the opposite side of the blade from the main cutter. Slide the file in between the spur and the screw at the tip of the blade. Run the file along the inside of the cutting spur, being careful to follow the convex angle. Do not flatten out the file while you do this, or you can ruin the cutting spur. Slide the file along the cutting spur a few times, but be careful not to shave off too much of the metal.