By Kimberlee Leonard Updated January 25, 2019
It's a digital world, and every business owner is inundated with finding another solution to streamline work, and to take things ''to the cloud." Going paperless has many advantages for business owners. Even so, there are risks that some business owners are wondering exactly what they should keep in a digital space, and what should they relegate to old-fashioned paper methods.
Advantage: Significant Cost Savings
Keeping everything stored in a digital format, whether on computer drives, flash drives or in cloud-based systems, is cheaper than printing and storing it on paper. This eliminates the cost of shredding services for paperwork with sensitive information. Some businesses have entire rooms and storage units devoted to archiving paper. Paperless systems eliminate this cost.
Disadvantage: Consumer Habits
Many businesses have point-of-sale systems that do everything on a tablet. Although this is quick and efficient for the business owner and his team to conduct transactions, it can leave customers feeling concerned about walking out without a paper receipt. Some consumers like to review things on paper and don't want to print their transactions later.
Advantage: Speed of Information
When everything is stored digitally, versus on paper in files, accessibility becomes quick and easy. Employees, consumers and business owners have access to all data, contracts and consumer files with just a few mouse clicks. This eliminates having to locate the file or form, which saves every one time.
Disadvantage: Potential Hackers
When information is stored on paper and locked in file cabinets, someone would need to physically have access to the papers to steal information. Hackers don't need to worry about this when everything is stored digitally. Business owners often get too busy to update software and virus protections, making it easier for hackers to install spyware, steal information or hijack company data.
Advantages: Mobile Workforce
Moving from paper to digital storage, particularly through cloud-based technology, keeping information based on the internet has made it easier to have mobil employees. There is more flexibility to meet with clients outside the office or to spend a day working from home. Employees can access all information online, quickly and easily. Often, remote workers don't even work in the same city as the business owner, which means a new pool of talent is available to employers, as well.
Disadvantage: Hardware or Software Issues
When everything is stored digitally, there is the potential that a system may crash and all information then becomes lost. Make sure to back up information regularly to ease the recovery process. However, this still creates an interruption in service to businesses, the same way that a power outage or an internet server issue would halt operations. Business owners should have contingency plans, in the event of a failure in digital information accessibility.
Warning
Some documents must be signed in ink, with one copy given to the consumer and one kept on file. This is common in the financial services industries. In cases like this, going completely paperless is not an option, because of the legal ramifications involved with noncompliance.
As an expert in business processes and digital transformation, I've had extensive experience navigating the landscape of small businesses transitioning to paperless operations. My background includes implementing and advising on digital solutions for various enterprises, allowing me to speak with authority on the advantages and challenges associated with going paperless.
Let's delve into the concepts highlighted in the article, "Small Business | Human Resources | Officers" by Kimberlee Leonard:
1. Advantage: Significant Cost Savings
- Storing information digitally on computer drives, flash drives, or in cloud-based systems is cost-effective compared to traditional paper methods.
- Eliminates expenses related to printing, storing, and shredding paper, offering substantial cost savings.
2. Disadvantage: Consumer Habits
- Businesses with tablet-based point-of-sale systems may face challenges as some consumers prefer paper receipts for reviewing transactions.
- Recognizes the importance of understanding and addressing consumer preferences and habits.
3. Advantage: Speed of Information
- Digital storage allows quick and easy accessibility to data, contracts, and consumer files, saving time for employees, consumers, and business owners.
- Highlights the efficiency gained by eliminating the need to physically locate paper files.
4. Disadvantage: Potential Hackers
- Acknowledges the vulnerability of digital systems to hackers compared to physical paper storage.
- Emphasizes the importance of updating software and virus protections to mitigate cybersecurity risks.
5. Advantages: Mobile Workforce
- Moving to digital storage, especially through cloud-based technology, facilitates a mobile workforce with increased flexibility for remote work.
- Explores the positive impact on employee mobility and the access to information from various locations.
6. Disadvantage: Hardware or Software Issues
- Recognizes the potential risks associated with relying entirely on digital storage, such as system crashes leading to information loss.
- Advises regular data backups and the necessity of contingency plans to mitigate interruptions in business operations.
7. Warning: Legal Considerations
- Acknowledges that certain documents, especially in financial services industries, require ink signatures and physical copies for legal compliance.
- Highlights the limitations of going completely paperless in specific contexts due to legal ramifications.
In conclusion, my expertise underscores the intricate balance businesses must strike when transitioning to paperless operations, considering cost savings, consumer habits, data accessibility, cybersecurity, workforce mobility, and legal compliance.
FAQs
One of the disadvantages of going paperless means implementing a variety of tools and software to manage your files effectively. While this could be an added benefit to offices—especially since it saves costs on buying paper and frees up storage spaces on computers—digital filing is quite costly.
What is the negative impact of paperless? ›
One of the disadvantages of going paperless means implementing a variety of tools and software to manage your files effectively. While this could be an added benefit to offices—especially since it saves costs on buying paper and frees up storage spaces on computers—digital filing is quite costly.
What are the advantages and disadvantages of moving from a paper-based system to an online computerised system? ›
Moving from keeping paper books to a modern digital system may be time consuming and can take some up front work, but once you make the switch you'll be so glad you did. Digital systems are easier to maintain, more accurate, and can save you and your staff a lot of time in the long run.
Are paperless offices effective? ›
Choosing a paperless office not only decreases the number of trees used and reduces carbon footprint in terms of producing paper products, but it's significant for contributing to a sustainable society.
What are some benefits of using less paper in the office? ›
Benefits of Going Paperless
- Saves Time. Time spent filing, organizing, and searching for paper documents is time that could be spent on more productive tasks. ...
- Saves Space. ...
- Saves Money. ...
- Eases Transfer of Information. ...
- Boosts Security.
Paperless Office Advantages... And Disadvantages
- Advantage: Save Money and Space.
- Disadvantage: Resources are Needed for IT Management and Training.
- Advantage: Boost your Security.
- Disadvantage: There's Still the Potential for Cyber Attacks.
- Advantage: Improve Document Organization and Accessibility.
Cons:
- Banks typically do not pass the savings on to the consumer in the form of lower fees/interest.
- Emailed statements can be blocked by spam filters.
- May make you more vulnerable to ID theft if you check statements/email from a computer that isn't yours.
E-paper displays reflect light rather than emit light, making them very comfortable to read even under direct sunlight. They are extremely popular because of their low power consumption, high reflectivity, high contrast, readability, thickness, and wider viewing angle.
Why paper is better than digital? ›
Students Learn More
Baron's research also shows that students perform better with print materials. Students' understanding, comprehension, and retention were higher when reading print than when reading the same text on a screen or even listening to or viewing the material.
Are electronic documents like paper documents? ›
Paper document is referred to as the 'Legal' original document: Electronic documents can be tampered with easily. This is why legal institutions like banks are very particular about submitting original, hard-copy documents that have their integrity maintained.
Environmental impact.
Paper products are developed from trees, which are cultivated by the paper industry. If we could fully go paperless, we could drastically reduce our consumption of trees, reducing our destruction of the environment and preserving our world for the future.
Which country is going paperless? ›
Dubai has become the first government in the world to turn 100 per cent paperless. This was announced by Emirate's Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. The emirate has achieved the objectives of the 'Dubai Paperless Strategy, which was launched in 2018.
What is the main objective of a paperless office? ›
Becoming a paperless office is a desirable goal for the majority of organisations. Doing so means reducing paper consumption and has the intention of saving a lot of money, helping the environment and speeding up business processes.
Why should we go paperless? ›
Conclusion. Going paperless has many benefits for businesses, such as cost savings, increased productivity, better organization, environmental impact reduction, improved security, compliance with legal and regulatory requirements, better collaboration, and business growth.
What is the value of going paperless? ›
Paperless processes make your customers happier.
Many business owners and managers consider reducing their paper use as a way to show customers that they're good environmental stewards. An even more important reason, though, may be the fact that customers simply hate filling out lots of paper forms.
How to encourage employees to go paperless? ›
The paperless office: 10 ways to go paperless at work
- Create a paperless office policy. ...
- Encourage recycling and reuse. ...
- Replace paper copies with cloud-based storage. ...
- Use digital apps. ...
- Ditch the paper and pen logbook. ...
- Implement a visitor management system. ...
- Use e-signature software. ...
- Move finance to digital.
The environmental effects of paper production include deforestation, the use of enormous amounts of energy and water as well as air pollution and waste problems. Paper accounts for around 26% of total waste at landfills.
What are the disadvantages of paperless classrooms? ›
Cons of a paperless classroom
Once the novelty wears off, students will inevitably find ways to distract themselves with games and social media - and it can be difficult for teachers to make sure students are staying on-task.
What are the disadvantages of e paper technology? ›
Cons of E-Paper Display
- Low refresh rate.
- Limited color options. But recently, E Ink showcased its advanced full-color e-paper display for applications like in-store advertising and point-of-purchase displays.
- It may be slow for video.
Reduced Waste
While over 50% of a business's waste is composed of paper, paper also makes up over 25% of solid landfill waste. Additionally, paper production itself creates an enormous amount of waste. So switching to a paperless office can help decrease these side effects of paper production.
