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.
