Cost! The one factor that has eluded you from investing in many good ventures in the past. Businesses need to ration their expenditure, to ensure their sustainability & profits. And hence businesses spend on a new scanner-copier or a corporate retreat, rather than investing in a document management software. Don’t get us wrong, a new scanner-copier & a corporate retreat are both equally important to an organisation. But so is a tool that helps you digitise & automate all your document processes at one place, saves valuable time & money, and increases efficiency & productivity. But what businesses don’t realise is that a document management software actually helps reduce company expenses. Let’s look at the math.
Let’s say you run a small business venture with 50 employees at its helm, and still use paper for all your documentation needs. How much money are these paper-based document processes costing you? There are two types of costs associated with paper. Direct costs & indirect costs. Direct costs are costs incurred while purchasing paper supplies, stationery, filing cabinets, etc, whereas indirect costs are hidden costs incurred as a result of using paper, like cost of misplacement or damage, cost of delays in information gathering & transfer, cost of errors, cost of resources, etc. Here is a rough estimate of the annual costs associated with paper-based processes, for an organisation with approximately 50 employees:
Most of these costs will vary from business to business, but as a business owner yourself, you know that the actual costs far exceed the ones mentioned above.