Paper filing systems for bookkeeping are becoming archaic. Even so, transitioning to an electronic filing system for some companies is daunting.
If you’re not sure an electronic filing system is right for you, read through the comparison below to see if a transition is right for you.
For clarity, here is a definition of each filing system:
- Paper filing system: Paper invoices, bills, receipts, etc. Filed in file folders and stored in boxes or a filing cabinet in an office.
- Electronic filing system: Digital copies of bills, invoices, receipts, etc. (either the original digital version or a scanned copy). Filed on a computer, or an electronic storage system like Google Drive, OneDrive, or Dropbox.
Paper Filing System | Electronic Filing System | |
Security | At most, a lock on a cabinet and a lock on doors. | Individual permissions, double-factor authentication, passwords, and backups. |
Cost | Per square foot of your office for cabinets, file boxes in storage, etc. This can get pricey depending on the cost of your office space. | Inexpensive. The cost starts at $0 and goes up from there. |
Accessibility | Employee accesses files inside building with key(s). | Permissions can be granted remotely with basic security protocols. |
Usability | There is one copy of the file in the workflow. The workflow only moves as quickly as the file moves between individuals. | Collaborative – many people can view at the same time, and in some cases can work on the file at the same time. |
Search-ability | To find a file, you locate the cabinet and go through folders and files until you find the document you need. | Search using metadata so the file is accessible within seconds. |
Fragility | Susceptible to being lost, stolen, burnt, spilled on, ripped, or accidentally shredded. Some receipts fade with time. | The best version of the receipt is saved in an electronic format and does not degrade with time. Infinitely less susceptible to damage. |
Expansion | Requires more cabinets, boxes, folders, and manpower. Can be time consuming to expand. | Right click and create a new folder! Expansion is almost limitless. |
The benefits of an electronic filing system are clear. If you want to transition from paper to electronic but don’t know where to start, get in touch with me – I’d love to help.
