When it comes to storing documents, using office filing cabinets may seem convenient initially. Your documents are easily accessible, and you might think you’re saving money by not paying for offsite storage costs. However, there are hidden costs associated with on-site storage, including the expense of filing cabinets and the space needed to house them.
Moreover, as document retention periods often extend for five or more years, the volume of files your business must manage and store can quickly become overwhelming, along with the associated costs. What’s the most cost-efficient way to address this challenge?
Rather than sticking with in-office document storage, let’s compare in-house storage to offsite storage costs to understand the value each approach brings.
Maximizing Savings with Off-Site Document Storage
Filing new documents in an office filing cabinet may appear cost-effective. However, there are hidden expenses, such as the price of filing cabinets and the time and costs of hiring an employee to manage company files.
Consider this: The average office employee uses around 10,000 sheets of paper annually. A letter-sized records box can hold about 2,700 papers, so each employee fills roughly 3.7 record boxes annually.
If you keep documents in-house, a vertical 5-drawer filing cabinet costs $350 and takes up 7 sq. ft. of office space. The average median price of office space is $17.50 per sq. ft., which means each cabinet incurs an annual cost of $122.50.
Now, suppose you have 20 employees in your company. Each year, they will fill approximately 74 record boxes, requiring nearly 9 filing cabinets. Additionally, let’s assume you pay an employee $15 per hour to manage company files.
To visualize the cost differences between on-site and offsite storage, consider this side-by-side comparison for 20 employees:
In Office vs Off-Site Document Storage:
|Individual Cost Factors||Annual Cost of In-Office Storage (20 employees)||Annual Cost of Offsite Storage (20 employees)|
|Filing Cabinet Costs||$3,150.00||$0.00|
|Space Costs (7 sq. ft. @ $17.50 per sq. ft.)||$1,102.50||$0.00|
|Labor Costs With File Manager ($15.00 per Hour)||$31,307.04||$0.00|
|Box Pickup & Transport ($3.00 per Box)||$0.00||$222.00|
|Average Off-Site Box Storage Cost ($2.23 per Box)||$0.00||$165.02|
|Total Annual Cost for 20 Employees||$35,559.54||$387.02|
It’s important to note that offsite storage costs can vary depending on the location and any additional services needed. On the other hand, the cost of employing someone to manage your company’s documents remains fixed in the office, regardless of the number of files. In contrast, the number of filing cabinets required will increase with in-house storage.
In our example, storing 74 boxes of records annually for 20 employees in the office would cost over $3,000, while offsite storage, including all relevant costs, would remain under $400.
Making an Informed Decision for Your Business
To maximize the cost-saving benefits of off-site document storage, consider the following steps:
- Assess Your Needs: Determine the volume of documents you need to store, your access requirements, and your regulatory compliance obligations. This will help you gauge the true potential for cost savings.
- Choose the Right Provider: Record Nations will connect you with an off-site storage provider that aligns with your specific needs and budget.
- Digitization Strategies: Explore opportunities for digitizing documents to further streamline your business’s document management and cut costs associated with physical storage. Many providers offer scanning and digital storage services.
- Regular Auditing: Conduct regular audits of your off-site storage to ensure you are not paying for documents you no longer need, optimizing your storage usage.
- Employee Training: Properly train employees on how to use the off-site storage system and digital tools to minimize retrieval costs and improve efficiency.
Cut Your On-Site Document Storage Costs With Record Nations Today
While keeping hard-copy documents in the office might seem convenient, it isn’t as cost-efficient as offsite storage and paperless alternatives. Regardless of your chosen document storage option, Record Nations can assist you in pricing your project and finding the right service provider to meet your document storage and management needs.
To start comparing quotes for storage services today, simply fill out the form, use the live chat, or call us at (866) 385-3706. Within minutes, you’ll receive free, no-obligation quotes from providers in your area. Make the smart choice for your business’s document management and save on offsite storage costs.