Document management and storage are two of the most critical aspects of any insurance claim product. It all starts with basic paper flow and document storage. This was, and is still, the cabinet filing system. Many of us are now paperless thanks to electronic technology. Let’s look at some of the financial differences as well as the steps needed to reach them.
How much do you spend every day photocopying and filing, distributing, updating, and updating paper documents. Paper handling is an integral part of office procedures and so companies often overlook it as a cost. Electronic Document Management System, or EDMS, can reduce paper handling costs and liabilities. It has been shown to save up to 90% on labor costs. Many companies will make the switch to an EDMS due to the economic pressures. The first step in evaluating the savings realized by an Electronic Document Management System is to gain a clear understanding of your company’s current paper document handling costs and other options.
Scanners are easy to find and affordable for almost everyone. OCR tools are also available in most scanning software products. This makes it an affordable option. The standard Microsoft products that are built into Windows normal operating systems enable indexing of your OCR/scanned documents. You can also use the built-in search functionality to quickly retrieve them. You can even manage the search locations and environment. Although this may seem like a basic process, there are tools available to help you get started. It’s easy to upgrade as the system requirements get more complex. These functionalities should be available in any niche software product that is used for billing, claim handling, cost accounting, or policy administration.
Nearly every office uses a variety printed forms and reference materials as an integral part their business. Daily office procedures are triggered by paper forms. For future reference, printed documents serve as a permanent ‘official’ version. These methods have been around for a while and are still very effective. However, things are changing.
Many offices may be convinced by the convergence of several trends that suggest it is time to get rid of paper. Many documents are created as electronic files. Offices with paper-based systems are finding it more difficult to print emails and faxes in order to file them. Many employees feel comfortable using computers. An increasing number of employees are more comfortable using computers and electronic files in their day-to-day work. Cost-saving measures are being driven by economic conditions. Many companies realize that going paperless can help them save money. Electronic Document Management Software (EDMS), is a future cost-saving initiative that has gained additional momentum.
Sometimes it is not clear exactly how much a paper process will cost. Many companies have used paper since the beginning and don’t take the time to evaluate whether it is still the best way for them to do business. Here are the top seven costs of using and maintaining paper.
1. Labor costs for document-retrieval. Filing documents efficiently and accurately
3. Costs for paper, toner, or per-page copy include:
4. Costs of physical proximity
5. Recovery costs for disasters
6. Maintenance costs for retention period
7. Environmental costs
A process audit is an objective, thorough review of all the daily tasks related to your paper process. An audit can be a powerful tool to cut through the fog of perception and reveal the truth. An audit should be friendly and not focus on the employee. An audit of the process can be done by an employee within your company or by a professional who specializes in auditing on-site. An audit determines the time it takes to accomplish each task. Then, multiply that number by the average salary for the person who is performing the job. This allows you to create reliable dollar figures for your daily document-handling tasks.
The audit will reveal high-risk, high-cost document handling practices that were not being addressed in the past. Using this information, a company will be able to easily determine where an EDMS can save them money, and then calculate their Return On Investment.
Electronic Document Management Systems can make significant savings for many companies. You need to know how much you are spending on paper documents today in order to calculate your Return On Investment (ROI) with EDMS. An effective way to obtain an objective, accurate view of your current document-handling expenses is to conduct a process audit. This information will allow you to make informed decisions about how electronic document management can best meet your needs.