4 Reasons Small Businesses Are Going Paperless

As creatures of habit, we’re resistant to change, especially when it sounds like it might interrupt business as usual. While a paperless office may sound like a vague and unachievable goal, the dream of going paperless is not a “pie in the sky” objective. It’s attainable — and imperative to your future success as a small business.

Becoming a paperless office is a win not only for your business, but also for your customers. With the right document management system, you can access accurate information faster, increasing not only workflow productivity, but also your customers’ perception of quality.

Paperless offices are becoming more common as more businesses catch on to the benefits of managing paperwork electronically. These include improved productivity, reduced overhead, faster file retrieval, increased security, and quicker turnaround, to name just a few.

Here are four reasons to consider going paperless in your office:

1. Create quick wins on your balance sheet. A well-designed paperless system not only frees up time, but it can also lower overhead costs by 30 to 40 percent by reducing office supply expenses, document storage space costs, and employees’ time. With paperless systems, employees can work on tasks that add value, not just push paper.

Look no further than DMH Contract Nursing Services for evidence: In healthcare, the amount of paperwork required is extremely time-consuming. Since transitioning to a paperless system, this two-woman contract nursing business estimates it has been able to recoup about 10 percent more in billing because accurate documentation takes less time. Its workflow decreased from 32 steps to 12, cutting the time required in half. Whereas DMH’s nurses used to carry about 30 pounds of paperwork on patient visits, they now simply bring laptops. Moreover, complying with complicated HIPAA laws has become much easier, allowing them to focus on people and patient care.

2. Improve security. A robust and secure DMS is the safest way to store, share, and manage sensitive documents. These systems provide increased security to protect your customers, your company, and your bottom line — and decrease the risk of failing to comply with regulatory requirements (e.g., SEC, FINRA, or HIPAA). Paper files are hard to protect from security breaches and natural disasters; a DMS better safeguards client information.

Think about how good your systems are at protecting client information: Do you send files containing sensitive data as email attachments or use cloud storage for such information? Do you back up or transfer information using a flash drive or CD? These are just a few methods still used by small businesses today that pose risks to compliance and security and leave them liable. A secure DMS can mean the difference between business continuity and bankruptcy.

3. Fuel growth and profitability. Efficiency is key for small businesses looking to grow. Combined with productivity tools like workflow management, a paperless office can skyrocket its efficiency and empower itself to scale.

A DMS fully integrated with other systems, such as Microsoft Office or workflow tools, is highly efficient. These systems can automatically trigger each step of a process for employees and route documents. Offices that implement secure paperless processes cut their turnaround times, costs, and internal training while reducing their risk. These shifts lead to better performance across a company’s growth indicators at a lower cost.

4. Access it anywhere, anytime. Paperless systems allow access to files and operations-critical documentation on portable devices, which is vital in today’s business world. With employees and customers often located in different regions, operating 9-to-5 is a thing of the past. You’ve got to be able to conduct business with every document available in just a few finger swipes, creating complete functionality around the clock — and globe. To succeed, you need to access and safely share information with co-workers, clients, and vendors on a moment’s notice.

Take Oak Bridge Financial, LLC, a full-service wealth advisory firm that recently transitioned to a paperless system. In this mobile office, employees often meet at clients’ homes and offices. Its teams rely on document management software to access all kinds of paperwork — applications, marketing materials, client notes — on an iPad. Oak Bridge estimates that, in space alone, it saves at least $10,000 annually by employing an effective DMS. Other advantages include easier compliance with regulatory requirements (as the SEC requires proof of documentation for up to eight years) and no longer having to create DVDs every quarter or manually back up files.

All companies can benefit by going paperless, but it’s important to start with a plan in place. If you’re interested in a DMS, meet with the key players in each affected department to get their input on how files should be structured, then design electronic templates and naming conventions that suit your company. Determine how long it will take to scan back files and who will do it.

Start with one department, and develop a plan for rolling out the paperless implementation. A good place to begin is with your human resources department; personnel and employee files and processes are always paper-heavy. Many industries (e.g., banking, real estate, healthcare) handle large quantities of sensitive documentation — from personnel files in HR to credit reports in accounting ­— so the volume of paperwork can feel overwhelming as you begin the transition.

But take heart — by implementing a paperless system in your office through a carefully planned DMS, you can ensure that important documents are safe and will never be misplaced while increasing your business’s efficiency and reducing costs. 

About the author

Matt Peterson has been with eFileCabinet since 2007 and directs all areas of the corporation, including sales and marketing, finance, product development, and operations. He has successfully reorganized eFileCabinet’s business objectives, raised both Series A and Series B venture capital, and implemented turnaround strategies, transforming eFileCabinet from a small startup to a successful, profitable company in high-growth mode. Under Matt’s tenure, the company has been recognized by the Inc. 500/5000 as a two-year winner and as one of MWCN’s Utah 100 fastest-growing companies in 2013 and 2014. Matt is a popular and frequent speaker and guest on both television and radio. His articles and interviews have appeared in hundreds of publications and websites including Forbes, The Wall Street Journal, Entrepreneur, PC Magazine, and Fox Business News. His 22 years of experience include executive leadership, enterprise software, SaaS, and business development.

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