It takes minimal time and resources to store a document or file in a digital format compared to a traditional paper-based system. There are both advantages and disadvantages to having a paperless or digital filing system. It could be on your local computer’s hard drives or in the cloud from a remote location. On the other hand, a paperless system lets you utilize a computer-based filing system and database management to safeguard your files. Now let’s dive into the basics of the modern paperless system. It’s apparent that, despite being very easy to implement, a paper-based system may struggle to cope with the speed of modern communication technologies. Paper documents can get lost, misplaced, or accidentally organized into the wrong category, which complicates finding them. Last but not least, as documents are manually handled by humans, there will always be some possibilities of human error. Frequent handling may also damage your documents over time. It is not always feasible to back up all paper-based documents. In case of a disaster, such as an earthquake, fire, or even flooding, your valuable documents can be ruined in seconds. No matter how fast and efficient the courier service you use to send a document from one place to another, it is no match for email or e-attachments. Photocopying inks, papers, filing cabinets, folders, and accounting books become a regular recurring cost for the business. Stationery items need to be purchased on a regular basis to keep things organized. As real-estate prices are always on the rise, it is very challenging for many businesses. It takes a great volume of physical space for the storage and organization of documentation in a paper-based system. Oftentimes, digital documents do not carry the same value as a paper document as evidence to the court.Īt the same time, the traditional system also has some drawbacks: It is a legal requirement in many places to preserve a paper-based original copy of any contract or agreement. You may also use a traditional fax machine to send a copy of a document to remote locations. Any document can be easily replicated with a photocopier machine. Even the smallest businesses can set it up within a few hours. A paper-based filing system is very easy to handle without any need for technical know-how. There are several positive sides of a paper-based filing system, including: The system has been widely used globally, and like every other system, there are certain pros and cons. In a paper system, the entire documentation of an organization is structured and organized by filing papers, physical folders, numbered shelves, and office filing cabinets. Let’s explore some of the fundamental differences between paper-based and paperless filing systems. Cloud storage started taking the place of physical cabinets. However, once computers became a common tool for the workplace, digitalization also made it easy to handle and manage files. There were massive piles of papers, folders, and cabinets in every office. Traditionally, for many years, office filing was done with paper documents and folders. Paperless Systems: What Difference Does Digital Make? Let’s now explore two major classifications of how to organize filing - papers and paperless. So far, we have highlighted several advantages of having a structured filing system in your business. So it is quite helpful for future referencing if the changes can be tracked and preserved well. In a modern team-based organization, one file may be used and modified by a number of team members at different times. It reduces the searching time and allows people to invest that time in more valuable tasks. People can access all the information right when they need it and in an inappropriate format. There will be no more guesswork, and everyone will be able to make important business decisions based on factual data. As all information is readily accessible, the overall operating system of the organization becomes a lot more transparent. This greatly contributes to the overall efficiency of the company. Having a filing system enables you to keep all information well organized and systematic. There are several benefits of having a filing system, such as: Grab my cheat sheet Why Do You Need a Filing System?Ī well-organized and reliable filing system should boost the productivity of your organization and generate a good ROI. Understand the value the department brings to your company, and report it to the stakeholders.
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