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Pros and Cons of Virtual Business
There are certain reasons for paperless business:
When an organization runs a business, it probably looks for every streamline operation, save time and cut costs. In such a case, the paperless business helps towards it. Let us have a brief look at this.
Pros of Paperless:
- Accessibility at the fingertips:
In a paperless business organization, it is not a big deal to find out particular documents we are looking for. But it is a big task if we go for paper use business. This paperless business helps to pull out customer’s information faster and more accessible rapidly. For example, let us take an example of online banking. There is no time limit to know your bank details. It is permitted to everyone whenever they need to know and hence we save our precious time.
- Sharing information and knowledge among employees:
Transferring our ideas and thought, information among staff and employees are a key part of having a successful business organization. But if it is Scribbled out on paper, note cards then the idea of sharing or transferring knowledge would be difficult. In such case using digital tools helps not only to save time but it also helps to circulate ideas.
- Receive customer payments faster:
It needs to invoice the customer at one point if an organization needs to extend credit of them. In such case, instead of sending paper invoices, it is good to switch to digital invoices which save money on paper, envelopes, and postages.
- Tax payment:
It is a must to pay tax for an owner of a business organization. In order to simplify the taxpaying responsibility, it is good to register with Electronic Federal Tax Payment System (EFTPS) and it is free and simplify the work of job payment.
- Document organization:
The company’s efficiency and professional look will get enhanced if it has the ability to quickly locate disseminate information. Spending time on a stack of paper slows down the response time. All these problems can be overcome by a paperless business organization.
Cons of Paperless:
The point with digital documentation managing system is that it will be useful to store and protect the data and documents on the server that are secure, which also means only the authorized personnel are allowed to access the files. But nowadays, the security is considered to be the biggest risk on the Internet.In other words, we can say like physical documents are becoming easy to protect rather than having it in a digital document management system.Because all these electronic files and data are tracked by the hackers and also obtain in a traceable manner. Hence there is no protection for documents.
- Backup of data
When every files and document are stored in a digital documentation system, make sure to have a backup file to recover the files easily. Because there is no guarantee that the system will be stable without a crash and may all information get lost.This is the main disadvantage to be considered in the paperless documentation system. This issue will create an interruption in service to a business.