What is the ROI on Digitizing Documents?

It’s no surprise that an employee will spend more time looking for a document than what it takes to actually read it. What is alarming is that an average company spends around $25,000 to fill one filing cabinet. More so, it costs about $2,000 a year per maintain and keep that cabinet organized.

Document management can save organizations time and money across many areas of their business. Not only does the service provide cost savings, but it supports time management for employees. Since the approach allows you to find and retrieve documents instantly from your desktop, everyday work functions are made more convenient, and completed much faster.

The benefit and return on your investment when utilizing data capture and digital imaging is that it’s 100% productivity based. If you have goals for using the service, the productivity of the organization will greatly increase after document conversion.

Full document management services turn operations completely electronic. Therefore, not as many people are needed to handle tasks. The smooth transition to document conversion systems even enables some organizations to conduct business with fewer human resources.

Take for example a huge organization that receives and deposit checks every day. It can cost millions of dollars to ensure that process is completed correctly each time. With document management, this process is done with half the manpower and half the time. Digitizing documents and indexing information gives people better access, cuts back on costs and limits error.

Prior to signing on for document management, make sure you can test out the services before making a commitment. The transition to digital will make everyday tasks easier, but only if you’re prepared for the changeover. Make sure the decision will be beneficial, and set goals, before making the transition. This ensures that you’ll synchronize with the change and be able to conduct business in the same fashion as before.

To determine an estimate of the ROI of document management, you must calculate the saved man-hours and storage costs. Then, compare the final number against the cost of the document management system and its operation.

Number of filing cabinets x 21 square feet x cost per square foot = annual cost

For example,

One 4-drawer filing cabinet = 36,000 pages

One 4-drawer filing cabinets require 21 sq. ft. of storage space.

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