How Excess Paperwork and Storage Are Hurting Your Bottom Line

Excess Paperwork and You

To a lot of businesses, “drowning in a sea of paperwork” is a familiar phrase (and state of being). It’s also symptomatic of how some companies are unable to deal with the increasing flow of information. Excess paperwork can be overwhelming and can even cut into your profits and compromise production. If you’re thinking about going paperless down the road, here are some reasons to ditch the paper as soon as you can.

It’s Expensive

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In 2011, paper production in the U.S. was just above 20 million tons, with the paper industry generating $110 billion. Part of that money is coming out of your company’s pockets! Considering the average worker uses 10,000 sheets annually with each sheet costing roughly a nickel, that’s $200 of expenses right there. Now multiply that by the number of employees in your office and you’ll get a good idea of how paper use can eat away at your profits.

It Increases Labor Costs

A study assessing paper costs at nine major law firms concluded that all the costs related to storing, photocopying, filing, archiving and frantically searching for paper documents amounted to $57.52 per box of paper. Labor costs involved in scanning and saving the same number of sheets on a computer were only $54.60. Although the difference in cost was less than $3, imagine how much you’d save over an entire year.

It Takes Time to Track Down

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A missing file can cost a company up to $120. Inherent in that cost is the time it takes to find that document. If that same file passes through several hands in the course of a workday, the chances of it getting lost increase almost exponentially. Workers spend many hours every week looking for important information, missing files, folders and other paper documentation—taking up valuable time better spent on more critical company tasks.

It Occupies Valuable Space

If you’re in an office with limited space and your company’s growing to the point where more staff is needed, all that square footage dedicated to filing cabinets and paper storage could easily be put to better use. Unless you find a more efficient way to deal with all that paper, you risk losing money by not being able to acquire and accommodate new employees and equipment.

It Comes With Additional Costs

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When you add up the costs of using paper, there are other expenses to consider besides the cost of the material itself. Other factors such as courier fees and postage, maintenance of printers and toner cartridges as well as paper shredders will figure in your costs. Considering all the expenses related to storing and handling physical documents, a paperless solution might appear more and more attractive.

The storage and use of paper in a business might not seem so costly when starting out, but over time, it can amount to levels that truly affect your business. Paperless alternatives are much cheaper and software like ours can make the process easy in certain departments. With the computer software currently available to you, you can create electronic documents that take up almost infinitely less space and that can be managed much faster and more easily. Communicating via email and social media is quicker and cheaper than postage, so your clients will appreciate it too.

Going paperless is one of the easiest investments your company will ever make and
you’ll experience great returns in a very short period of time.

Photos: patpitchaya / Shutterstock, Lou Oates / Shutterstock, Pixabay, Manuela Fiebig / Shutterstock