Web Series, Part Four: Measuring the Cost Savings of Document Management Software

Posted on March 6, 2010 under Uncategorized by

How much does paper filing cost a staff of ten?

[This month’s series looks into the hidden costs of maintaining paper files compared to an all-digital document management system.  If your small business or department employs ten office workers, how much do physical folders cost you annually?]

The labor cost cited in our last post was just for getting up and finding a file folder.  But what happens if it’s not there?  It takes much longer than five minutes to hunt for a misplaced document.

This obviously happens even with digital files saved in Windows without an effective document management system in place.  Employees sometimes can’t remember what an old file was named or where it was saved.


PricewaterhouseCoopers crunched the numbers and discovered it costs $120 to search for every misplaced file and $220 to wholly re-create a lost document.

With M-Files document management software, features like keyword indexing, automatic version tracking, and daily backup virtually eliminate the occurrence of misplaced documents.

In our hypothetical ten-person staff, maybe three items get misfiled per month, and let’s say once per month, our staff has to re-do something which it did before but just can’t find any place.

These are conservative guesses.   You might have mishaps like these every week.  For example, if you have older files warehoused in another location, you might take a similar hit each time you need to fetch a document from years past.

Total costs of misfiling…………………………………..…………………. $7680

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