Cost Benefit Analysis of Electronic Documents
Before beginning a project to transition to digital records their must be a cost justification. According to reports by industry groups the return for most business that implement a document scanning program is within the first eighteen months.That seems to make sense but lets take a step back and look at where these companies can save money with electronic documents.
Benefits of Electronic Documents
One advantage is easier compliance with privacy and disclosure laws. Sarbanes-Oxley, HIPAA, and FACTA have document security requirements. With digital records it is easier to manage access to records down to the individual. This prevents unwanted access that can be used for identity theft.
The other side of compliance is disclosure. When a company gets a request from a regulatory agency or as part of a lawsuit they must quickly identify and disclose all records. Electronic document management systems (EDMs) have the capability to perform the search with very little effort. Records can be identified and shared as needed.
Another cost benefit is by reducing the need for document storage space. This can be from using up an empty office or using a records storage service. Either one is a cost that can be eliminated or at least reduced when the records are moved to a server.
The last major benefit is harder to quantify. That is improved work flows that can reduce overhead costs. For a law firm that must access past cases and share with multiple offices the case is easy to see. But if it is a business that only needs to get history on some accounts on a rare bases the case may not be so clear.
Costs Associated with Electronic Documents
On the other side of the ledger are the costs that are incurred in the transition and storage of digital records. The one time costs include the scanning of the records. This can be done by buying scanners and bringing on temporary employees or by outsourcing the work to a service.
When it comes to storing the documents you can buy a server and EDM software or use a cloud based service. As with any leasing decision it is between a larger up-front cost or a lower monthly charge. If you have the staff to maintain a server then it will save you money but smaller offices are usually better served by using a service. The key thing is to make sure you have a good backup plan.
Want to Test Out Electronic Documents at Your Office? Call us today for Free Quotes
When implemented correctly, any business can benefit from using and electronic document management system. At Record Nations, our industry experts know the best ways to structure an electronic management system, and will help you find the best solution for your company. Call us at (866) 385-3706 or fill out the form on the right for free quotes from local records management companies. We will get back to you within minutes of receiving your request to answer any questions and get the ball rolling.