Good document organization is vital to your business’s productivity. If your company is not properly organized, paperwork can be misplaced, tasks can pile up, and you can lose valuable time that could’ve been used for more productive tasks.
The problem with paper-based processes
Despite the availability of digital solutions such as accounts payable (AP) automation, many businesses still rely on paper-based processes. These require employees to move paperwork around the organization and manually encode invoices, increasing the probability of human error. For instance, some companies make erroneous or late payments because the information copied onto the system does not match the data on the paper-based invoice. This may result in penalties or missing out on early payment discounts.
Paper-based processes also require storing paper documents in filing cabinets, a system that can make retrieving information more difficult and time-consuming as more files are stored. This can delay critical business processes such as invoicing and customer service, and result in lost revenue and additional costs of reproducing missing files.
What’s more, filing cabinets take up office space. A standard cabinet, for instance, uses about 16 square feet of space. If the average annual office space rent is $25 per square foot, renting one filing cabinet costs about $400 per year. What’s more, maintaining a filing cabinet costs about $2,000 per year, according to a Robert Half International study ー and your team doesn't just need one cabinet, so the costs pile up
How can DMS help?
An automated document management system (DMS) like PaperSave helps you store and keep track of your documents. It processes and stores electronic documents, which is helpful if you plan to go paperless.
Aside from the benefit of sending and receiving documents in seconds, a DMS can also sort documents based on specific variables. This reduces the risk of misfiling while making document retrieval easier.
Retrieving an old file can be challenging if you have a paper-based document management system, as your employees have to spend minutes browsing filing cabinets. In a year, these minutes may add up to hours that could’ve been used for more valuable tasks.
A DMS, on the other hand, allows users to search for files just like how they search on Google. It even allows users to search using specific information like the keywords or contents of a document, enabling them to easily retrieve a specific file in seconds.
In the past, it took our client Washington & Lee University three days to manually retrieve documents for their audit preparation. But with PaperSave, that timetable was shortened to 30 minutes.
Other benefits of using a DMS include:
1. Fewer filing cabinets
Because a DMS allows you to store and manage your documents digitally, it reduces the need for office filing cabinets. In fact, PaperSave’s document management software allowed our client WS Packaging to eliminate 55 filing cabinets in six months and reduce its paper consumption by 40%.
Having fewer filing cabinets not only allows you to find necessary documents faster, but also helps you save significant maintenance costs.
2. Lower invoice processing costs
A DMS can also help you lower invoice processing costs. Our client World Triathlon Corporation used to spend $30 to $40 to process one invoice. But with PaperSave, the processing costs were reduced to $2 to $3 per invoice.
This is made possible by DMS streamlining business operations through digital workflows and providing instant insights via universal approval processes. This makes it easier for your AP employees to collaborate with one another while lowering the risk of human error along the way.
Say hello to better document management with PaperSave. We will simplify your AP workflow through our powerful, cost-effective, and secure DMS, so your business can be more productive than ever. Schedule your free personalized demo today to learn more.