Filing Costs Point to the Need for File Management in the Cloud

‘Filing’ is a vital word in the world of brokers and financial advisors. It may not seem like much, it’s a task that’s seen as the bottom rung in a lot of organizations. But in industries where you’re constantly dealing with new documents, a proper file management system is a must.

 

As well as being a vital part of the process, filing is also an expensive business cost. If you rely on a paper file management system to store your documents, your ongoing costs will be significantly higher than a broker who stores all of their documents digitally.

 

Even One Filing Cabinet is a big Cost

 

Let’s take a quick look at the average cost of a paper file management system. According to industry research, the average cost of filling a standard 4-drawer filing cabinet is €15,000. That same research puts the annual cost of maintaining those files at €1,600 a year.

 

Taking the financial industry standard document retention period of 6 years, that’s a cost of €24,600 pre filing cabinet. Multiply that figure by the number of filing cabinets you have in your office and you get an idea of how costly paper can be.

 

Storage Doesn’t Reduce the Cost by Much

 

You may point out that you don’t keep your documents on site, that they’re in storage once the case is completed. The cheapest quote we found after checking out a few providers was €10 per week for similar storage space. That’s €520 per year, so €3,120 for 6 years.

 

Of course you still have to add the €15,000 it cost to fill the filing cabinet because the documents don’t go straight to storage and you will probably keep them on site for 12 months before they hit storage. So even with storage taken into account, the cost still comes close to €20,000 per filing cabinet.

 

That’s a huge drain on resources, just to manage your files. Even putting aside the access and physical space benefits of a cloud file management system, these figures provide compelling reasons to move your filing into the cloud.

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