There are many reasons file cabinets are not only out-of-date with today’s technology, but are also putting your business at risk. Having a hard copy is a good thing, but paper needs a backup for many reasons – including natural disasters and theft.
According to Pricewaterhouse Coopers, finding a lost document will cost a company $122 on average. It is also estimated that 7.5% of all company documents are lost completely. The average small company works with more than 10,000 documents, which means the cost for finding lost documents, in this scenario, is approximately $91,500.
Not only that, file cabinets are arbitrary when you can have multiple document backups in different locations, taking up less space. Here are three reasons your business should consider digitizing:
1. Physical is Fragile
Most businesses still have vital records stored in a paper-only format, which is risky. These documents can easily be compromised by fire, flooding, theft, misfiling – or any other imaginable way that paper could be ruined by natural or human forces. For example, The New York Times had a broken pipe flood a storage area last year, where historical photos, newspaper clippings, microfilm records, books and other archival material were nearly lost. This raised the question to many businesses about whether they should digitize files to preserve precious physical assets and intellectual property.
Document backup through digitization provides reassurance that important physical documents are records can remain intact and available for use.
2. Security Issues
Paper files can be lost, stolen or accidentally misfiled, creating a mess for businesses. Digitizing documents provides an important backup for security and peace-of-mind purposes. Digitizing means that employees can easily search for what they need, then read and share what is relevant to them and the business – whenever they want. Cloud services make it easy for businesses to access and share secured documents, at multiple locations, easily.
3. Labor Costs Associated with Manual Processes
Paper is not only costly for businesses, but manual processes can also significantly increase operating costs and slow down your business. Getting work done more quickly with automated invoicing solutions drives down labor costs. American Productivity and Quality Center research reported that labor comprises 62% of total Accounts Payable costs. Because labor costs with manual processes are causing many organizations to spend nearly twice as much on invoicing process than they would with more efficient and streamlined solutions, businesses are unknowingly throwing away a lot of money.
Luckily, digitizing can be a fairly painless process in the 21st century. There are options for Cloud based data security that can be catered to your small to medium sized businesses’ unique needs and systems, while naturally integrating mobility into your workplace. Consider backing up your file cabinets today with secure digitized processes. You may just save in operating costs, too.
Is your business struggling with out-of-date processes? Have you considered digitizing your business documents? Come share them with us on Twitter or email us at email@example.com. For a closer look at our Cloud based digitizing solutions, head here.
- Get your business out of the 80s
- Invoicing trends: the lure of automated AP
- How to boost productivity, revenue, and employee loyalty via automation