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Cost impacts of document management

quality management

Inadequate document management can have serious consequences for companies. Among them we can list loss of documents and losses, rework, fines for lack of documentation and fines for overdue documents.

When the company does not implement a management policy that can trace the life cycle of all organizational documentation, it is difficult to know when certain documents can be discarded or which ones should be kept for legal and fiscal proof purposes.

But what are the cost impacts on document management? Check out our post today and learn more!

Risks of poor document management

Reducing costs and increasing productivity is what every entrepreneur dreams of and wants to achieve in their daily routine. However, the maturity of document management is still little adopted in companies, directly impacting the results and growth of organizations.

To give you an idea, according to data from PwC and the Radicati Group, the lack of correct – and complete – document management causes the following situations:

  • Managers lose an average of 1 month, of the 12 months of the year, looking for information that has been improperly stored and in disorganized files;
  • Spending 5% to 15% of the professionals’ time reading information in documents, but that can reach up to 50% of the search time for such documents;
  • Employees spend an average of 2 hours a day looking for lost documents;
  • At least 2/3 of the information held by companies is obsolete and can be removed or destroyed;
  • A document is photocopied, on average, 19 times. Almost 40% of impressions are unnecessary.

Expenses with fines

When the company does not maintain efficient document management, it is easily exposed to losses. Among them are the fines imposed by the tax authorities for lack of documents (or the difficulty in finding them).

Many companies also do not know how to properly manage their digital information, taking up network banking and e-mail accounts unnecessarily. It is important to know how to manage them and make the most of technology – reducing costs and increasing productivity.

Rework

Lost or even lost documents generate rework and, consequently, reduced productivity. In addition, employees waste a lot of time indexing physical documents, which could easily be processed with automated operations.

With proper document management, it is possible to standardize the organization of files, whether by date, year or other specifications. This eliminates the difficulty of managing physical documents that can lead to the loss and loss of important information.

By using appropriate tools and systems, it is possible to integrate all sectors of the company. You have all the information available in one place, without the need to search isolated folders or digital files.

Self storage costs

Companies produce a large amount of daily information, which takes up a lot of physical space for storage. In addition, many organizations are required to rent self storage for the allocation of all documentation. This generates higher costs with rent, maintenance and employees.

By maintaining document management in digital format, the company can keep all information secure and in the cloud. All data can be accessed from anywhere and at any time, without the excessive use of space and greater expense.

Management software as a solution

Document management is one of the most important practices to avoid (or even eliminate) unnecessary costs that can lead to serious losses.

It is necessary to treat the immense amount of physical and electronic documents correctly. But other than that, it is necessary to count on the help of professionals specialized in the area, with sufficient knowledge to outline a strategy that can integrate the entire company and make all the produced documentation accessible and organized.

By choosing the right tools, the company can rationalize document costs, optimizing resources and increasing productivity, which consequently reflects in better results.

Does your company already adopt solutions for good document management? Share your opinion with us in the fields below!

Read more about: costs, quality management.
Thatiana Sestrem

Journalist

September 17, 2020

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