The 5 Real-World Costs of Missing Paperwork (and How to Avoid Them)
You’d think that with all the technology we surround ourselves with, missing paperwork would be a thing of the past. Yet, even today, businesses suffer significant losses due to misplaced documents. What kinds of losses do businesses face as a result of missing pieces of paper?
In this post we offer up five real-world scenarios that illustrate the true cost of missing paperwork in today’s fast-paced corporate environment. We’ll then explain how implementing document management software can save you from these costs and risk factors.
Costs of Missing Paperwork
- Audits and Financial Oversights
Imagine being in the middle of a financial audit. You’re confident that all transactions are above board, but one missing receipt from a substantial business expense results in the inability to claim a deduction. The result? A hefty, unexpected tax liability. This is a modern-day reality for many businesses that haven’t yet gone paperless.
- Operational Delays
A large distribution company wins a substantial contract with a new client. However, the missing paperwork for a customs declaration delayed an overseas shipment by several weeks. This not only incurred additional charges but also strained the new client relationship, risking future business.
- Legal Consequences
In the era of stringent data privacy regulations, consider the fallout from missing a single document that contained personal customer information. Without proper records, companies can face legal repercussions, hefty fines, or irreparable reputation damage under privacy laws like the GDPR in the EU or California’s CCPA.
- Missed Business Opportunities
A tech startup was in talks with investors for a new round of funding. However, the absence of a critical performance report led to the investors postponing their commitment, causing delays and potential valuation changes.
- Workday Inefficiencies
In last month’s newsletter, we shared The ROI of a Document Management Solution. In that article, we poked fun at some of dated, yet often cited statistics surrounding paper handling (such as the estimate that employees spend 20% of their time looking for information). So rather than rehash those here, consider this plausible scenario: Say each of your 100 employees spends 10 minutes each workday filing, retrieving, or searching for a paper document. That adds up to 16.5+ hours each day—the equivalent of two full-time employees!
Benefits of Going Paperless
Given the likelihood of a situation similar to one or more of the above happening within your organization, it’s evident that clinging to manual, paper-based processes is not just outdated but risky. Transitioning to a paperless document management solution like DocLink offers a multitude of benefits. Here’s five you may not have thought of previously:
- Proactive Compliance Management
Ensure all vital records are on hand, especially during sudden regulatory checks or audits, reducing the risk of financial or legal penalties.
- Enhanced Security and Accessibility
Digital documents are securely stored, backed up, and can be accessed from anywhere. This is essential for businesses with remote teams or those looking to expand geographically.
- Operational Efficiency
Instant document retrieval, real-time collaboration, and streamlined workflows all contribute to a smoother, more efficient operation.
As businesses grow, so does the paperwork. Digital systems scale effortlessly with your business, ensuring seamless operations even as the volume of documents increases.
- Environmental Stewardship
Besides the obvious operational benefits, going paperless aligns with global sustainability goals, highlighting your company’s commitment to eco-friendly practices.
Missing paperwork in today’s digital age is akin to leaving money on the table. The risks—from operational hiccups and legal challenges to financial consequences—are significant. A document management system like DocLink mitigates the risks and elevates your organization’s efficiency and effectiveness.
As businesses strive to be agile and proactive, implementing paperless workflows becomes essential. The time to transition is now. Contact us to learn more about DocLink document management software.
View the datasheet: DocLink and the Remote Office
Watch the DocLink success story: Simplify Processes and Go Paperless