Why is document management software a must for businesses?
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The days of going through file cabinets and wading through piles of papers are long gone. Businesses nowadays use electric storage where they can access all their files, documents, and records via devices like PCs, smartphones, and tablets. This makes important information easier and faster to retrieve and manage. In fact, a study by Deloitte shows that 85% of businesses are accelerating their digital initiatives in the coming months.
However, manually managing and retrieving documents can still be time-consuming and tedious. It also doesn’t eliminate the risks of human errors, resulting in damaged or lost files. Hence, it’s important that you invest in a document management system for your business.
What is document management software?
Document management software or DMS is a type of software that stores, manages, and retrieves all documentation that your business uses every day. It handles all your electronic files and even paper-based documents throughout their lifecycle, beginning from their creation until their implementation. Most importantly, it automates the process so that you can spend less time organizing and retrieving all your files and have more time working on other important tasks.
How the document management system works depends on the software you invest in. But generally, it helps your business by digitizing all your files and storing them in a single database for easy retrieval and access. Some have scanned and image-capture features to turn paper-based documents into digital files. Others even leverage AI and machine learning technology to capture data from documents instantly. You can also use document management software to verify the authenticity of documents, create approval workflows within your organization, and automate data back-ups and recovery.
There are many more features that document management software has to offer. And it’s because of its benefits that the global demand for document management software reached $5.55 billion in 2022 and is anticipated to reach $16.42 billion by 2029.
Why do you need document management software?
Improves document handling
Digitizing your documents is not enough if you want to streamline your document management. Without document management software, you will still be stuck with manually organizing, tracking, and retrieving files in your database. This can still take up precious time that you could have used to accommodate other important responsibilities. Not to mention, it still doesn’t eliminate potential human errors when it comes to handling documents.
Document management software is more than just a glorified database for your documents. Its numerous tools and features make it easier to handle and manage all your files and records in just a few clicks. You can also use it to track and retrieve files by a word or phrase in the document. And by integrating it with other applications, you can easily import and export extracted data from the document and thereby avoiding manual data entry in the process.
It's important to note that DMS is different from a content management system. A content management system or CMS is used to generate and publish your content online. It does not necessarily manage your files and documents. So having both a DMS and CMS could come in handy for your business. Some examples of CMS software can integrate seamlessly with DMS so make sure to check them out.
With the rise of remote work and hybrid workplaces, your employees should be able to access all the files they need anytime and anywhere. While digitizing your documents makes it easier to share and send files from one device to another, you still need document management software to streamline document search and retrieval. It automates file search, tracking, and retrieval using keywords and other characteristics. In just a few clicks, you can pull up any document you want without needing to go to the office.
Document management software centralizes all your documents in a single platform which you can access using any device such as a computer, smartphone, or tablet. Moreover, it allows you to shift from one device to another without losing important changes in a document or the database itself. This makes it even more convenient to search for and retrieve PDF files and other types of documents when you are on the go. Depending on the solution implemented, these files can be accessed online or offline.
By making documents more accessible, document management systems can also enhance collaboration within your organization and with your clients. Since DMS centralizes all your files in one platform, teams from other departments can work together to modify certain documents, compile records, and organize databases. It also ensures that your company has a single source of truth. This means that everyone is working on the same set of information and data regardless of when and where they got it.
Some document management system features also include automating approval workflows for faster document turnaround time. This means you don’t have to worry about sending the document to the necessary stakeholders to get their signatures or approval. The document itself will automatically forward the document as it goes through the process. It can even notify the recipient about the document’s impending approval to avoid delays.
Enhances data security
Investing in a document management system is also one way of protecting your business data. Different types of document management systems offer robust security features to prevent unauthorized access to your documents. This includes features such as permission controls, data encryption, tracking and monitoring tools, and more.
The importance of document management in data security should not be overlooked. Failing to properly handle your files can lead to data loss and breach. And in turn, this can affect the overall security of your business, your clients, and your partners.
Some DMS also has an automatic document backup and recovery feature which ensures that you never lose valuable data in your company. This allows you to retrieve corrupted, deleted, or lost files in just a few clicks.
Cut down costs
At first glance, a physical filing system seems cheaper than investing in a document management system. But the costs resulting from potential mismanagement, document damage, or loss would be far greater overall. Not to mention, this would force you to spend precious time recreating or retrieving that lost or damaged file. As such, DMS is considered a great investment for your business since it optimizes your process with minimal costs.
DMS can also help you cut down on office supplies expenses such as paper, ink, and postage. Likewise, you don’t have to worry about storage space since all your files can be stored electronically. Hence, you won’t be needing those expensive steel filing cabinets or an offsite warehouse or vault for your documents.
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Choosing the right software
With digital transformation on the rise, it’s high time that you invest in a document management system for your business. DMS does more than just digitize your files. It also provides you with tools and functions to streamline document management within your organization. Its numerous benefits make it an essential tool for your company if you want to remain relevant and competitive in the market.
Nonetheless, choosing the best document management software for your business requires an in-depth understanding of what your company needs and what type of DMS is suitable for it. So make sure to explore your options and try them out for yourself.