Running a business can be stressful in many ways. There are so many things that you have to take care of. One big challenge in this regard is document management. The business has hundreds and thousands of records to keep. Managing all those documents the traditional way, manually, maybe a daunting task.
Thankfully, today, we have many solutions to take care of your documentation. Document management systems can be extremely helpful when it comes to maintaining your records and making the process easier and more efficient. But before we dive deeper into a document management system’s benefits, let us first understand what a document management system is.
What is a document management system?
A document management system or DMS, is a software that allows you to create, store, modify, manage, index and retrieve digital documents for your business. Most of these document management systems for businesses are cloud-based systems. This means that you can create and modify documents on the go and retrieve them from anywhere at any time. They also usually save any changes to a document automatically.
A document management system facilitates easy flow of critical information across an organization, as documents can be shared digitally with any number of members in the organization. It allows you to keep track of all your business documents by storing them in one place and makes workflow much more efficient and streamlined.
Why does your business need a document management system?
A document management system is an indispensable tool for any kind of business in today’s time. The first biggest advantage here is, of course, reduced consumption of paper. Since you can store and share documents digitally in a DMS, you don’t need to take printouts any more and end up saving a lot of paper. This way, you’re doing your bit for the environment as well.
There are other benefits of using a DMS for your business too. Let’s look at five reasons why your business needs one in its toolkit.
Secure storage of files and data
Most of the documents related to your business contain crucial information that you need to access from time to time. Physical documents are always at a risk of being lost during storage or transportation or of being damaged due to unforeseen accidents like fire or floods. With time physical documents also tend to wear out and have to be recreated to keep them in good condition.
With a document management system, these problems are sorted for good. Since there are no physical documents to take care of, you don’t have to worry about loss or damage. Your digital documents are kept safe by the system, all the more so when the system is cloud-based. So your data cannot be lost unless you wish to delete it. You can also decide who should have access to which file and who shouldn’t. So any sensitive data will be kept safe, allowing access only to those people you choose to share it with.
Increased productivity at the workplace
When a business stores its documents or files physically, a lot of time and manpower is wasted in the process. Storing and sharing of documents becomes a cumbersome process that requires a lot of unnecessary effort. This, in turn, decreases the overall productivity of the people in your business establishment. Physically searching for a file from a humongous stack and then getting it to the respective person’s desk is the wasteful expenditure of time and resources.
Using a DMS, you can easily share a file within seconds with anyone you need to. Your employees are freed of the time spent on searching for files physically and that time can be used more resourcefully instead, increasing their productivity.
Easy and convenient collaboration
A document management system also allows collaborating with others in creating or modifying a file. If there are inputs required from more than one person in the creation of a document, the file can be edited by all people concerned, on the DMS itself. The ability to view, edit and share files digitally improves the rate of workflow and work gets done in half the time required with paper documents.
Quick and easy access to data
With a document management system, you can have access to any important data at any time. A business needs to retrieve data from the present as well as the past for many of its operations. Retrieving past data from a physical storage space can be a herculean task. But with a document management software, it would take you only a few seconds to search for an old file and retrieve it, using the software’s built-in search function. This is the benefit of being able to store all your documents digitally on one single platform. The storage space is huge, and you can have access to very old files in practically no time.
Another huge advantage is that you can access the data from anywhere, any time. The cloud-based system allows you to have access to your files across various devices.
Using a document management system saves you a lot of money as well. It might seem like an investment initially as you would need to buy the software, but the returns on the investment are also substantial. Firstly, you can save a lot on paper and related products. Apart from that, as employees become more productive by eliminating the traditional file management system, it results in improved efficiency and turns, more profits.
Now that you know what the benefits are, see the Types Of Document Management Systems – Which Is Right For You?