3 costs you incur when keeping it in your company!

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It is an inevitable fact that every company needs to preserve some documents. There are many reasons for this , ranging from compliance with tax regulations, to demands related to corporate issues and compliance requirements for business analysis. And keeping this information in a physical file can be a more expensive operation than you might imagine. In this article, you will be able to better understand some cost components of maintaining a physical archive and learn about more modern practices for preserving business data. Stay with us! Why is keeping a physical file outdated? A still quite common practice is maintaining documents in a physical archive, managed by the company itself. It always starts with a small cabinet that occupies a certain amount of space in one of the rooms and ends with a big problem due to the volume and classification of information.



When you realize, there are professionals hired to number database work specifically with this, and the institution is even paying rent for commercial spaces just to be able to store the documents. This type of action is out of use, as it brings with it several difficulties. In addition to the issue of high costs dedicated to storage locations, there are file organization problems, as documents need to be kept for periods depending on their type. There are also issues regarding the security of this information, which is subject to theft and loss due to weather and disasters such as floods and fires. What are the costs involved? Spending on physical space is probably the most representative in this case. Not only because of the expense, but also because it is visual. Everyone can see that files are dominating a large number of areas of the company and when this happens, there is a beginning of concern about the issue.







But, in addition to this, there are other representative costs, see! 1. Operating cost When a physical file becomes very large, it is inevitable that the company will need to have employees who dedicate most of their time, or even fully manage this information. Archiving documents is not simply placing them in any location without criteria . It is necessary to classify and access this information for several reasons and, therefore, this cannot be done without a minimum of evaluation and process. And, with that, there are expenses associated with salaries and other expenses for employees who are performing these tasks. 2. Internal slowness A cost that is often not noticed by companies, but which is very representative, is lost time. When information that is in a physical file is necessary, it may take an excessive amount of time to access it, which may even compromise the progress of projects and decision-making.

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