Office space is expensive. In fact, office space is often one of the largest costs for organizations large and small. With real estate rates ranging from $27 per square foot, to well over $100 per square foot, your organization must be ready to make the best use of your current space in order to reduce costs and stay ahead of your competition.
The Hidden Costs of Paper
Aside from being generally inefficient, paper files come with plenty of additional burdens (primarily the hidden costs that can be detrimental to your bottom line). As you begin to question the cost of your own paper processes, be sure to contemplate the following:
- Do you want to hire more staff but do not have the room?
- Do you have file cabinets and storage boxes occupying space that might be better utilized?
- Would you be interested in decreasing real estate costs?
- Do you want to improve the aesthetics of your office to illustrate that you are efficient and technologically savvy?
- Is there a better location for your organization out of your price range?
- Are you moving – but cannot stand to bring your file cabinets with you?
- Are you consolidating or merging your company?
- Do you need to organize your valuable business documents?
- Do you want to stop paying your specialized staff for clerical and/or administrative tasks?
The Cost of Paper Explained
What do you think your current file cabinets cost? A regular 4-drawer file cabinet occupies around 15 square feet of space – including the file cabinet itself and the space needed to access its files. If you are paying $40 per square foot of real estate, one cabinet will run you $600 – that is $7,200 a year for just one file cabinet! By eliminating just 2 of these filing cabinets, you could successfully free up $14,400 worth of office space.
What if you could achieve a savings of 8% in overall office costs? Implementing an electronic filing system through the use of a document management system can cut your need for storage by 50% in only 5 years. The average amount of office space currently overrun by paper documents is about 15%, allowing it to drop to 6.5% with the proper electronic filing solution.
Addressing the Paper Cost
Eliminating the hidden costs of your paper and freeing office space can be a difficult journey. However, with the assistance of a document scanning service provider, you can begin digitizing and storing your paper files securely and easily. Your document scanning vendor will be able to equip your company with the best-in-class document management or Enterprise Content Management system, allowing you to efficiently manage electronic files.
Start growing your company today by spending your money the right way. Stop paying for office space and file cabinets and reallocate your budget to improve your company, hire revenue generating employees, and ready your organization for growth.