After labor, office space can be the second highest cost for organizations of all sizes. With the average price of real estate ranging anywhere from $30 to over $100 per square foot depending upon location, today’s economic conditions demand that office space be used as efficiently as possible to minimize overhead costs and stay competitive. Whatever the size of your office, optimum use of your space for revenue generating employees is crucial.
Paper’s Hidden Costs
In addition to the inefficiency of paper, the hidden costs associated with paper documents may be holding your company back. Ask yourself these questions:
- Do you want to hire more revenue generating staff but can’t because file cabinets and document storage boxes are taking up room?
- Do you have space limitations that are preventing you from expanding your services that can be overcome by eliminating the file cabinets and storage boxes in your office?
- Do you want to reduce your real estate costs in order to increase investment elsewhere in your company?
- Do you want to improve the appearance of your existing space to better impress your clients and communicate a modern, efficient and technically savvy company?
- Do you want to relocate to a more prestigious location but can’t afford the same amount of space you currently have?
- Are you moving and don’t want to take your paper documents and file cabinets with you?
- Are you consolidating offices and need to combine and organize your vital business documents in a way that ensures easy and immediate retrieval?
- Do you want to reallocate staff members that spend most of their days filing or searching for missing documents?
How much money is your company actually spending to store documents in file cabinets and boxes?
A standard 4-drawer file cabinet takes up 15 square feet of office space, including the actual size of the unit plus the amount of space needed for a person to stand in front of opened drawers and access files. If you’re paying $50 a square foot for office space, the average cost in Manhattan, one file cabinet is costing you $750 a month – $9,000 a year. That figure keeps climbing with every file cabinet and box you have filled with papers. (Actually, the figure is higher as it does not include the typical 80% loss factor for common areas and therefore does not address the useable space vs. billable space aspect of your real estate costs).
In their whitepaper, “The Paper Free Office: Dream or Reality?,” AIIM points out that electronic-only filing using document management would halve the storage space needed for paper in 5 years. The average proportion of office space taken up by paper is now 15.3%, and it would drop to 7.4% with an all-electronic filing policy, a saving of nearly 8% in overall office costs, an attractive proposition for any CFO or business owner.
Eliminate the Paper Problem
How do you tackle the hidden costs of paper and free up the valuable office space your paper documents have been taking up? A document scanning service provider can convert all of that paper into an electronic format which can then be stored securely and easily accessible throughout your organization in a document management system hosted on your internal network or in the cloud. Make room for revenue generating employees, reallocate money in your budget for new ventures and improve the efficiency of your office by going paperless.