You have likely heard the buzz about going paperless throughout the business world. But, did you know that the notion of going paperless isn’t limited to businesses alone? Nonprofits can, and likely should, go paperless as well. The idea of “going green” has been around for a long time, but it has only recently taken off in terms of its implications for businesses and organizations alike. For some reason, even with technology and fund accounting software such as AccuFund software aptly supporting and providing the means by which we can go paperless, we seem stuck in the world of paper. Maybe it is a comfort zone thing, but being focused on paper is costing us all lots of extra time and money.
The Costs of Being Paper-based
How is having a paper-based office costly? Research suggests that most documents that are handled at an office are merely shuffled instead of used for productive purposes. It is probable that up to 50% of work time can be spent looking for information rather than using it. In essence, we are wasting our time and not using our resources well.
Not only that, but there are financial costs, too. It is estimated that it costs companies $20 in labor costs to simply file a document. A misfiled document can coast $120 in labor to be found, and lost documents that must be reproduced can cost $220. Imagine the financial implications these numbers could have on your nonprofit! For other examples and further explanations about the cost of NOT going paperless, visit here.
If you feel like this cannot possibly be the case for your organization, just take a look around. If you start counting the filing cabinets, paper stacks, binders, and file drawers around you, you will probably find that your organization is relying too heavily on paper, too. The good news is that the time and money spent can be reduced by going paperless, but how is this achieved?
Rationale for Going Paperless and How Costs are Reduced
The reality is that paper-based offices are costly because they are inefficient. Inefficiencies are costly in multiple ways. Therefore, reducing inefficiencies reduces costs. Addressing what is lost on paper is well worth the effort, and you’ll help save the environment at the same time.
Going paperless reduces costs by:
- Saving time on document filing and management
- Saving money on ink and paper (not to mention labor costs in sorting through paper)
- Reducing errors by streamlining and combining processes and documents instead of isolating everyone to their own processes and documents
- Securing documents better to reduce costly threats to security and solving problems if personal or organizational private information is compromised
As you can see, going paperless reduces inefficiencies. In the process, costs are reduced as well. Did you know that it is possible to use your fund accounting software to help you go paperless? It’s true! In a system like AccuFund software, employees can access the system through a web-based portal to do a large variety of tasks without needing paper.
In order to begin going paperless, simply identify small areas in your organization that could go paperless instead of trying to tackle your entire organization at once. Start by implementing one or two paperless processes in one or two departments. Over time, these small initiatives can be spread out to other areas of the organization. If you are wondering where to begin, the Accounting and Human Resources departments are great places to start. Contact us here at RBP Methods to learn more about going paperless, about how your fund accounting software can help you go paperless, and about AccuFund software.