Business Technology Blog

Are Physical Documents Putting Your Business at Risk?

Written by Standley Systems Staff | Jul 22, 2025 6:17:30 PM

Most business owners don’t think twice about the filing cabinets in the back of their office or those boxes of records sitting idly and collecting dust. They assume their physical records are safe, and some may even think they pose less of a risk to their business than having electronic documents floating around on the web — but that assumption is wrong. 

Beyond being inefficient, physical documents expose your organization to real business risks. Speed, compliance, and security matter more than ever in today's tech-driven world, meaning paper is no longer the safe choice. Companies that depend on physical documents for their operations may end up with a wider attack surface than those with digital document protection, and may slow their efficiency down. The result can be lost sales, compromised data, scattered business processes, and even costly compliance violations. 

In this guide, we'll uncover some of the hidden risks of relying on physical documents for your operations. We'll also explore how using a managed service provider (MSP) for document management can solve those problems, and why Standley Systems could be the right solution for you. 

The Hidden Risks of Physical Documents

Some organizations continue to rely on physical documents because they find them safer than electronic records, which could be exposed to cyber threats. But that assumption overlooks the hidden risks that accompany physical documents. From physical security vulnerabilities and audit exposure to lost productivity and the risk of natural disasters, physical records often pose more problems than their digital counterparts. 

Security Vulnerabilities

Paper may not be able to be hacked, but it carries more security vulnerabilities than some may realize. Not only can anyone access a file cabinet with a simple key or good excuse, but paper also lacks security measures such as encryption, automatic backup, and remote access control. Sensitive financial, legal, sales, and HR-related information is at risk from both internal and external threats when it's left in a file cabinet, so stronger security is a must. 

Compliance and Audit Exposure 

Industries such as health care, legal, finance, and education face strict document retention and access rules. Paper systems make it difficult to track access attempts or control versions, as well as other security measures. This creates a lack of transparency and visibility into your processes, leaving you ill-prepared to demonstrate your compliance during an audit.

Disaster Risk

Fire, flooding, or theft can wipe out physical records permanently, disrupting your operations or halting them altogether. Even well-organized paper files are vulnerable without an electronic backup, so digital files are critical for maintaining your business continuity and for creating a thorough disaster recovery plan.

Productivity Drain

Paper systems weigh down your teams' productivity. All that time spent searching, filing, copying, and re-filing adds up fast, and errors from using outdated or lost documents can slow teams down and cost money.

Growth and Scalability Limitations

The amount of paperwork you have to complete often grows with your business, hindering your ability to work remotely or in a hybrid environment. Physical record systems make it harder to grow. 

What a Document Management System Can Solve

Document management systems are secure and efficient, and they provide greater transparency into your business processes than a scattered paper infrastructure ever could. Digital records offer multiple benefits over paper systems, such as: 

  • Stronger security: Document management tools have data encryption features that keep your records secure in the event of an attack, and their role-based access controls (RBAC) prevent sensitive information from being viewed by unauthorized users. This keeps your records safe from internal and external threats, improving your security posture. 
  • Easier access: Security is essential, but your files must also be readily accessible for your employees to complete their everyday tasks. Document management solutions provide a single source of truth for your records, letting you search for the documents you need when you need them and giving you easy access to them from anywhere. 
  • Greater efficiency: Document management systems can improve your team's productivity. They possess automated workflows for approvals, signatures, and archiving, as well as many storing, sharing, and editing features that let you complete your workflows faster.
  • Improved transparency. Complete with built-in version control, backups, and reporting features that align with major regulatory standards, document management tools can help you create audit trails more efficiently. This improves your transparency and gives you greater visibility into your processes, as well as helping you maintain your compliance.

Another benefit of document management systems is the increased business continuity they provide. Their automatic file backups ensure minimal data loss in the event of a disruption, creating a disaster recovery safeguard that keeps your business going. 

Why Standley Is the Right Partner 

Despite the benefits of switching to a document management solution, some organizations stick with paper because the challenges of digital transformation are too great. That's why they need a document management MSP to help them along their journey. 

Standley has helped countless SMBs reduce their business risk and streamline their operations, and we've done it by helping them switch to the leading document management platforms. As an end-to-end managed service provider, we don’t just sell a one-size-fits-all solution. We assess your business and recommend a system that fits your needs. Our team goes beyond installation and offers management, training, and support for your document management solution, so that you’re never stuck with a system you don’t understand.

Experience, understanding, and comprehensive support — that's what companies need in a digital transformation service provider, and that's what Standley Systems provides. 

Final Thoughts: If You Still Rely on Paper, It's Time to Rethink

Digital transformation can be overwhelming, but staying with paper is increasingly risky. Not only do physical records hinder your employees' productivity, but they can also be subject to damage from natural disasters and lack the cybersecurity measures needed to maintain a robust security posture, making it difficult to maintain compliance. Some hesitate to transition from physical to digital processes due to the challenges that come with the process, but the gains in productivity, compliance, and data security make the payoff more than worthwhile — and working with the right partner always helps. 

Standley Systems is a leader in document managementmanaged IT solutionsand managed print, and we work with you to make your digital transformation as seamless as possible. We not only offer tailored solutions that align with your unique business goals, but we also provide the training, support, and maintenance you need to make the transition to digital records a success. The result is greater productivity for your team, less overhead from storing old documents, and greater visibility into your processes — all of which help you maintain your compliance. 

At Standley Systems, we understand that digital transformation can be daunting, but it doesn't have to be. Talk to our team today to schedule a no-pressure document risk assessment, and let us show you how simple it can be to make the shift.