If you’re exploring the idea of going paperless, you might be intimidated by some of the costs you are running into in your research of document capture solutions. We understand that from a distance it might seem like a paperless solution is going to cost you a pretty penny, but the truth is that, like any investment, it will end up saving your business a good chunk of change in the long run.
Seem farfetched? Let us break it down for you.
- Going paperless reduces labor costs. Research shows that the average employee spends about an hour a month searching for and/or replacing files. Assuming that you have 50 employees who make roughly $20/hr., your office would be spending about $1,000 a month for employees to search for documents.
- Lost files cost money. On average, 7 percent of a company’s paper documents are permanently lost. That might not seem like a big deal, but the reality is that a lost file can cost between $125 and $300 to replace. Those expenses can add up very quickly.
- Storing files is very expensive. It costs between $25 and $50 to create a file folder. When you factor in the cost of storage space, paper and ink and labor, an average four-drawer file cabinet can cost around $25,000 to fill and $2,000 annually to maintain.
When you add up all the various expenses associated with paper, the Gartner Group approximates that between 7 to 12 percent of a business’s revenues are spent, in some way, on paper documents.