The dropping costs of hard drive space and the growing number of scan-enabled multifunction systems are prompting many businesses to implement Electronic Document Management Systems.
These systems provide searchable access to scanned information enabling better business decisions and smoother customer service interactions. They also create a much-needed disaster recovery plan and help ensure regulatory compliance.
However, as many companies compare this technology to the old paper-based office they tend to see paper documents as free. The fact is that the cost of managing paper documents may actually be more expensive than the digital options available today.
The Cost of Paper Filing
Consider an average three-drawer filing cabinet. This seemingly innocent piece of office furniture actually consumes a lot of time and money.
One Time Cost
Cost of Cabinet: $400
Cost of Folders: $100
Cost of Paper Prints and Copies: 12,000 X .02 - $240
Annual Cost
Floor Space: 12 square feet X $1.75/foot/month - $252
Given the one time expense and the annual cost of floor space, over five years each cabinet costs $2,000. If you only have 30 filing cabinets your hard costs would be over $60,000. This is a lot of money to spend given that 7% of documents in a paper-based filing system are misfiled never to be found again. The average cost to recreate a lost document is $200.
The Soft Costs
This doesn’t include the cost of maintaining the files in each cabinet. It takes time to copy, categorize and file documents in paper folders. And when you need information searching takes even more time. Some studies estimate that the average executive spends 3 hours per week searching for files while clerical staff spends five hours per week. This is usually an energy-draining frustration and is often as the expense of clients who are sitting on hold.
The Risks
Paper-based filing systems also carry substantial risks. Documents can be stolen never to be found again. Fire, flood or natural disaster could literally wipe out your business. Audits take longer as employees wade through boxes of information hoping that they can find what they need.
A Better Way
Fortunately there is a better way. Electronic Document Management technologies allow you to create a secure and searchable archive of your business information. With the low cost of disk space there has never been a better time to consider this. One 100 GB disk can store over 2,000,000 pages of information and replace over 100 filing cabinets.
Learn more about how you could benefit from Electronic Document Management. Contact us today for a complimentary consultation.