One of the most frequent costs businesses encounter when managing their monthly budget typically involves some expense associated with paper. Between ink and maintenance, ream orders and the energy spent running the printers, companies dole out a good chunk of change every year to keep tangible operations running. Some are opting out of the game, choosing paperless document management as a way to cut these long-term costs from their finances.
Acknowledging the expenses
Ultimately, employees are spending precious time organizing documents that could be more easily managed through electronic workflow. That's energy that could be used to develop a new product, interact with customers or launch a marketing project. It's insane that business professionals give themselves a certain amount of time just to peruse through filing cabinets in search of a report that may have been carelessly discarded. Just because a document looks as if it's seen some wear-and-tear, doesn't mean that it's not important.
Some of the processes through which capital is wasted just seem plain impractical. According to a study conducted by the Association for Information and Image Management, electronic-only filing has the potential to reduce the amount of storage space needed to house five years' worth of paper by 50 percent. In addition, 77 percent of invoices that arrive as PDF attachments are printed, meaning that documents that could easily be shared and stored digitally are being needlessly filed away in more space.
Preparing for tax season
Every company has to go through it: tax season. Whether you're a fan of the process or not, paying annual dues to state and federal authorities is a requirement organizations can't afford to neglect. Doing so could potentially compromise the positions of everyone working at a firm. Daily Finance contributor Holly Perez outlined six ways in which a business can tighten its finances for the next tax season, one of which involved making an investment in document management software.
Perez stated that employee pay stubs could get lost over the course of a year - probably more often than one would think. Encouraging your subordinates to sign up for direct deposit will reduce the cost of paper, but also provide your business with a timeless electronic record that can be accessed whenever it's needed. Sending payment reports to tax agencies is easier than ever.