The problem of paper

George E. Pake, head of research at tech giant Xerox once made a startling prediction: ‘I’ll be able to call up documents from my files on the screen, or by pressing a button. I can get my mail or any messages. I don’t know how much hard copy [printed paper] I’ll want in this world.’ Pake’s prophecy, delivered in 1975, accurately foretells the advent of email and electronic documentation – the flaw was that he also predicted the death of paper by 1995.

Unfortunately 40 years after Pake’s predictions, paper is still a crucial element in many business processes, creating several costly (and avoidable) inefficiencies which could directly affect your business’ profitability. Here are the key points to consider in tackling paper in your business:

Improve delays in communication

In the age of instant connectivity, few businesses want the inconvenience of having to wait for a document to arrive in the post. Even first class does not guarantee next-day delivery; in most cases businesses using the postal service need to allow 1 to 3 days for delivery.

If your business is waiting on crucial supply invoice information, or a payment, that delay could have serious implications. Switching to an electronic accounting software system, such as Xero, ensures all invoicing and payments are automatic, immediate, and easily traceable.

Avoid data errors

If your business is using paper-based systems to transfer data, such as receiving printed invoices from a client, there is a good chance that information could be copied incorrectly as it is entered into your accounts system. These kinds of errors inevitably result in queried payments, disputes and time wasted trying to resolve each incident.

Data errors impair your decision-making ability and impact on cash flow, exponentially increasing the cost of using paper. Using computerised systems, including accounting software, data can be transferred directly, removing the potential for human error and making book-keeping automated and accurate.

Safer data storage and sharing

Systems based around paper are also prone to important information being mislaid, carried off accidentally, or delivered to the wrong desk. Mislaying paper in this way causes a delay whilst it is retrieved – which has major implications for all other business processes reliant upon it.

Just as delays between your business and its suppliers and customers are unacceptable, so too are internal hold-ups down to lost pieces of paper. Consider switching your business to centralised digital systems, including CRM (customer relationship management) and accounting. With these systems, your business can capture and share information securely and efficiently between key employees, without the need to print out any private details. Digitising also ensures long-term, mineable data storage without the need for a lot of space.

The paperless office – some day soon?

George Pake’s prediction may not have come true in the 20-year time frame he envisioned, but now, another 20 years further on, the technology is finally arriving that will help small businesses minimise their reliance on paper. Using the best tools available for each business process, SMEs will be able to share key information with their employees, partners and customers electronically, helping to finally overcome the issues outlined above.