Before you make the switch from a paper file system to a document management system, you need to understand how it will affect your bottom line. Incorporating document management software can significantly increase your solvency. Consider how lower personnel, document storage and contingency costs can help your business improve profitability.
With good document management software, personnel costs decrease. Employees using paper-based filing systems spend a significant amount of time searching for files. By digitizing and indexing documents, searches take seconds instead of minutes. Employees are able to answer customer queries before a telephone call is complete. As a result, you increase customer satisfaction, which leads to greater customer retention. Keeping more customers lowers the cost of retention and possibly reduces the need for new customer acquisition.
Document management software also leads to improved file consistency. Files can be saved as templates for future creation or revision, thus reducing the time necessary to make documents uniform. Distribution or reporting becomes easy with consistent file formatting. The result is lower personnel costs to format and send documents electronically.
With good document management software, you may be able to replace some administrative positions with income-producing jobs. Document management software frees employees for other tasks such as lead generation, product development or other valuable activities. Reducing administrative overhead costs certainly leads to greater profitability.
Paper-based filing systems carry large storage and archiving costs. Document management systems significantly reduce these costs. Digitize central filing systems and document storage to a single server or set of servers. While every business necessarily retain some paper-based files for audit or compliance, reduce space and filing costs with electronic files.
Reduce the cost of keeping information with automatic archiving policies. When an employee needs to reference a particular archived file, there is no associated retrieval cost. Instead of performing an archive search through the file clerk, the employee can simply access the electronic archive to find the referenced document.
Every business has documents required for contingencies. Document management software ensures that files are accessible when they are needed. During tax or audit season, DMS makes documentation available for quick reference. A good system makes sure that you have files available for every situation.
While a disaster is not likely to occur, every business needs to prepare for the possibility. A good DMS will help make sure that recovery is quick in the event of a disaster. The system backs up critical business files regularly in a secure location to ensure the business is back online quickly after a disaster. Management can then reduce the funds planned for contingencies because recovery is faster and cheaper.
Help Your Bottom Line
Document management systems are necessary in today’s economy for a business to remain competitive by reducing costs. A good DMS will allow employees to complete customer queries quicker and cheaper than searching for paper-based files. DMS lowers the cost of storage by moving electronic files from a filing cabinet to a server. Finally, should a disaster occur, DMS will help get the business back on its feet quickly. The bottom line is that DMS can help your business profitability.