Most modern companies don’t use paper as a primary way to conduct their business because electronic documents are convenient and remove clutter from the workspace. However, if you don’t use a document management system (DMS), you can still get crushed under virtual paperwork without proper organization.
Does Your Business Need a Document Management System?
In a perfect world, every single company would use a document management system on their first day because it encourages good organization habits. Unfortunately, most of us either do not have the funds available to take advantage of these systems. As you grow, you may be even more reluctant because you’ll need to transfer to another process.
The best time to implement a document management system on a solution like Sharepoint is right now, whether your business has 1 customer or 1000. It’s worth your time to implement a stronger, longer-lasting process that can help your team operate smarter and faster down the road.
There are endless reasons and benefits associated with adopting a DMS as soon as possible, including the ones mentioned in this article.
Why You Need a Good Document Management System
Reduces Storage Space
While some industries absolutely need file folders or document holders to present and store important papers, most businesses could benefit from shredding most of them. A software-based document management system will reduce the need for storage bins, cabinets, and boxes and free up a massive amount of office space. Now, you can keep hard copies in less expensive storage facilities like in the building you’re paying rent in.
If you work in industries that store sensitive information, like banking or real estate, you’ll need to have expert security to prevent those documents from falling into the wrong hands. A DMS can keep sensitive data protected by encrypting that information while it sits in the Cloud. A document management system also leaves an audit trail of who viewed the documents or when they were modified.
Easier to Retrieve
Finding that one document your client or customer needs can be a headache, especially when you manually look through each file cabinet. It’s a waste of precious manhours. Plus, if you can’t find the document, you’ll need to pay for a replacement. A DMS can look up information with a keyword and a single click, and unless someone physically deletes the document in the Cloud, you’ll always have access to it.
Better Regulatory Compliance
Regulatory compliance can get tricky with any business as failing to stay compliant will lead to legal punishment, including federal fines. You’ll need to stay up-to-date with federal and state regulations, such as HIPAA and Sarbanes Oxley, as well as privacy guidelines. A DMS comes with a built-in system that keeps track of these guidelines because your documents can be regulated, easily classified, and stored.
Sharing with your customers and clients becomes easier with a DMS because it can access different sources from multiple locations. Electronic imaging will make sharing documents over the internet possible and safe – you won’t just have to rely on a fax machine. After authorizing access to another user, you can monitor their inputs. If they delete or remove important information from the document, you can recover it quickly.
All document management systems require a complete disaster recovery plan. While it’s unlikely your documents will glitch or become lost, it’s possible human error could delete or edit a file beyond recognition. With a DMS, records are traceable within a range of criteria. Imaged documents are also centrally stored and can’t be misplaced or lost after viewing. All documents are digitized and archived immediately when they enter the system.