If you’re still printing out paper documents and storing them in bulky file cabinets, then you should consider investing in a document management system (DMS) instead. Not only are traditional, paper-centric document management processes inconvenient and unsecure, but they also cost a lot of money to execute and maintain.
Why is traditional document management so expensive?
Paper-based document management uses up a lot of resources, the cost of which can add up to thousands of dollars in a year. These resources include:
Paper is often counted as an inexpensive resource. But when you consider that a single office worker uses 10,000 sheets of it in a year, 14% of which end up going to waste, then it doesn’t look so cheap anymore.
What’s even worse is when you consider that paper is made from trees. Recycled paper comprises just a small percentage of what’s sold and used today, which means forests are still being cut down to produce the new paper every year. Paper production also uses a lot of water and produces tons of greenhouse gases, exacting a considerable toll on the environment.
2. Printing equipment
By itself, paper has little value in the office. To turn it into a document, you’ll have to print text or graphics on it. For this, you’ll need ink as well as a printer connected to a computer. Both machines require electricity to run and have to be maintained regularly to stay functional.
3. Office supplies
Once you’ve printed out your document, you’ll have to tuck it inside a folder or envelope for sorting and storage. Fasteners, staples, and other tools for binding sheets together may be cheap, but they add to the cost of paper-based document management in the long run.
Steel cabinets are expensive, and maintaining them can cost thousands of dollars yearly. But more importantly, these storage cabinets take up a lot of space in your office. This is space that could have instead been used for an additional desk or more legroom for your staff.
5. Shipping fees
If you send out paper documents, then you have to factor in the cost of courier services. Supposing you have to send documents once a week to 10 locations, and each parcel costs $20 to transport, then you’ll be spending $10,400 yearly on shipping fees alone.
In business, every minute wasted is money lost. Every year, 21 days of your staff’s time is spent reviewing documents and six days searching for misplaced files. You’re essentially paying your employees to look for documents instead of focusing on more valuable tasks.
There are several ways you can lose money because of outdated document management. Misplaced, damaged, or stolen documents can cost you $220 per page to reproduce. On top of that, if these documents contain sensitive information and you are in a regulated industry, the government could charge you hefty fines.
How can a DMS help you save money?
A DMS is an entirely paperless solution, which means it does not suffer the same limitations or cause the same problems as paper-centric document management does. With a DMS:
You don’t spend on paper and related products
A DMS uses electronic documents that are processed using a computer or mobile device. These documents are transmitted and stored as they are — no paper folders or envelopes, fasteners, or inks required. Not only do you minimize your expenses on paper and related products, but you also help reduce the number of trees cut down for paper production.
You maximize office space
Most DMS solutions store files in cloud servers, which means your documents use up absolutely no space in your office. This leaves you with valuable space for workplace improvements like bigger worktables or new equipment.
You send and receive documents at low costs
You can transmit electronic documents through email without incurring any additional cost. What’s more, you can upload them to collaboration software where several members of your team can work on them together at the same time.
Your employees process documents in less time
A DMS can capture data straight from paper documents, convert it into an electronic document, and automatically store it for future use. It can do this with very minimal human input, thereby decreasing the risk of erroneous entry and misfiling. Stored documents can also be retrieved and accessed within seconds.
Your data is kept secure
By keeping your files in cloud servers, a DMS protects your data from malicious users. This mitigates the risk of data loss and theft. As an added measure, any data stored in the cloud is encrypted to ensure they can’t be read by unauthorized parties.
PaperSave provides businesses with a powerful, cost-effective, and secure alternative to paper-centric document management. Discover how we can empower your business by scheduling a free personalized demo today.