How much is your agency’s monthly overhead? The price of doing business can be a big part of your overall operating expenses and eat into your profits. As your business grows, wouldn’t it be nice to not have to grow your overhead as well? What if you could cut your overhead? A big part of that starts with getting rid of paper.
We know the insurance industry was built on paper, but technology has allowed us to operate entirely without it. Paper, printers, printer ink/toner, printer maintenance, filing cabinets, shredders, etc. These are all part of your overhead and it begins to add up as you grow. Not to mention the labor your hire to deal with these.
It’s sobering to understand just how much time is spent on menial tasks like processing and organizing paperwork. Many agencies have an administrative office worker that works full-time just on filing. Going paperless means cutting back or cutting out these expenses entirely. A document management system can handle the jobs of a data entry specialist, file clerk, and office assistant.
Besides the cost of paper and related equipment, there are other costs that come with working with physical documents you may not normally think about.
Hours of labor hours go into filing and retrieving paper records. On average, it costs a company $20 to file a document. Physical documents are inefficient and can make you incur several more costs due to human error. It costs a company about $120 in labor to find a misfiled document and $220 to reproduce it if it’s completely lost.
A document management system automates the process of filing a document and removes human error from the equation.
Thanks to several compliance standards, agencies are obligated to retain mountains of documents for years at a time, forcing them to fill entire office rooms with filing cabinets. Sometimes businesses have to turn to third-party document storage facilities which can cost a lot.
Taking your agency paperless means you can get rid of the filing cabinets and reclaim your office space
As mentioned before, compliance dictates that businesses need to keep documents for a minimum amount of time before disposing of them. It’s a good practice to destroy documents after their retention date. Not only will it save space, but keeping a document for too long leaves you open to litigation. If you’re ordered by a court to produce a certain document, even after it’s past it’s retention date, you have to show up. Litigation is costly and distracts from your business.
Never worry about forgetting to destroy documents on time again. Document management automates retention schedules, so it notifies you on the day or just automatically purges it.
Implementing a document management system and going paperless quickly pays for itself as you’ll soon find yourself rethinking several of your traditional practices and cutting back on things contributing to your overhead. Growth should come with more profit, not more overhead. The labor hours saved on mundane tasks like filing paperwork can be redirected to projects that actually help the company grow.
To see how Rubex by eFileCabinet can help you go paperless and save you money on overhead, fill out the form below to see it in action in a live demo.