A DMS system is essential for your organization. Installing a DMS software on your computers will help you save time, disaster management of your documents.

Employees don’t have to spend more time on processing contracts, invoices and customer inquiries.

You already know the benefits of using a Document Management Software if you have been reading our other posts. Now, I will share the profits or returns you can make if you invest in a DMS software.

You might be thinking, but how can using a DMS application make you money while you will actually be paying for it, right?

Assessing and calculating the ROI for DMS is a very simple process.


To calculate the ROI of DMS System, you need to ask the following ten questions

1. How many people in your organization use paper documents?

2. How many times does every person retrieve the paper document?

3. How much time does it take to retrieve a paper document?

4. How long does it take to file a paper document?

5. What is the average hourly salary of these employees who handle these documents?

6. How many paper copies are generated every day?

7. How many filing cabinets you have?

8. How much space is occupied by these cabinets? Usually, a single cabinet requires 12sq.Ft space of your office.

9. What is the rental rate of your office premises on an average basis?

10. How much money do you spend on filing supplies per month?

Now that you have answers to all the above questions you can easily calculate the time spent in your organization for documentation of a single file or document.

Multiply this time by the average hourly salary and you will get the amount of money that is wasted on searching a single document daily and yearly.

After this consider the loss of business or loss of customer trust due to lost documents. The cloud-based or on-premises based document management system may seem costly, but in reality, it’s not as expensive as filing and retrieval of physical documents.


Other than quick retrieval and easy storage, using DMS has many other benefits, like :

– DMS stores documents in electronic format and these documents are easily backed up and can be copied offsite easily. You can create as many copies as you want without incurring any cost. On the contrary, a paper-based system has higher prices and is not even environmentally friendly.

– Any misfiled document can be easily found through the search option in the document management solutions. Whereas in the paper format filing system it is tough to find and sometimes it also becomes impossible to find the misfiled file, it depends on when and how the data was filed.

– DMS is integrated with other software therefore, filing becomes very easy for anyone. To file a paper document, you will have to go to the cabinet and file the document.

– Moving documents in the workflow from one point to another is a very easy process as the whoever has the document in the workflow is always available in the cloud. It is challenging to move documents in the paper folder format as you won’t know on whose desk is the file stuck somewhere.

– Filling paper forms is tedious and can have a lot of human errors. Electronic forms are pre-filled and eliminate these mistakes.

– Electronic documents are in encrypted form making them secured from unauthorized access. Documents in physical can get stolen or can be misused.

– Physical papers are an unsafe form of keeping records as they can get destroyed during a calamity like fire, pest attack, earthquake or any other natural disaster.

– You will get freedom from the pricey paper and it is environment-friendly too.

– Consider the above points and make your calculation for your return on investments. You are investing your money; you deserve to know what amazing and extraordinary long-term returns you will get.

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