Top 7 Reasons Why Your Business Needs a Document Management System in 2023
Data and documents are a huge part of every business. They should be protected and managed effectively. Maintaining their organisation may seem overwhelming. The document management system comes into play here. The rise in cybersecurity threats makes it increasingly challenging to manage business information from several sources.
The right document management system software can increase the efficiency and effectiveness of your business by capturing, storing, and retrieving documents.
Benefits of using a Document Management System
- Saves space by reducing storage
It can be expensive to store paper documents. It is necessary to purchase and prepare file cabinets, boxes, and storage bins. Physical storage of documents accounts for roughly 15 percent of the total office space, according to a report. In the U.S., office space costs on average $285 per square foot. Just for document storage, that's a lot of budgets.
Document management systems are software-based solutions, so you can store hard copies offsite, away from your office, in a warehouse or facility that is more convenient for you.
A document management system can streamline workflows and save your team hours. Employees are able to easily find and share files through the system and can determine how recent the document is by using an easy-to-use, centralised repository. By simplifying their work, they are able to spend more time on more significant things.
Business processes can be more visible with a DMS, and workflows can be better monitored. Access can be allowed and monitored for external users with authorization. Moreover, integrated email capture allows you to track and view correspondence associated with a shared document.
- Enables easy regulatory compliance
The compliance requirements in every industry are unique, and adhering to them is not always easy. It can be quite challenging to meet the compliance requirements for certain documents. In some cases, nonconformance can result in fines, licence revocations, and criminal charges. By using a document management system, federal and state regulations such as HIPAA, tax laws, and the Occupational Safety and Health Administration (OSHA) can be easily met. Obtaining efficient storage and classification of new documents is made easier with automated record retention schedules.
- Ensuring easy document retrieval
By enabling employees to search within a document management system, retrieval becomes easier. To make the retrieval process even easier, you may be able to add metadata and tags to each document according to the system you choose. Using a document management system can save you time and money. The DMS can retrieve files based on words or phrases in a document, depending on the solution implemented. Critical information can be accessed easily through integration with business applications.
Cloud-based document management systems make it easier to share and collaborate on documents and processes, whether your team works in the same office or remotely. Documents can be shared and worked on collaboratively by employees from different departments. Better workflow monitoring is possible with DMS because it provides enhanced visibility into business processes. Also, a DMS can create audit trails that show who edited what and when.
The cost of storing physical documents is high, but it is also risky. Your business can suffer serious damage if your valuable information is destroyed due to a fire, flood, earthquake, or another disaster. A digital archive is a backup that protects paper documents from disasters like fires, floods, and other natural calamities. The tracking of documents with a DMS is highly traceable and can be based on a variety of criteria. The ability to track documents after viewing them reduces the risk of documents being misfiled or lost. If your servers fail, a DMS will ensure that your company's valuable data is protected and advanced disaster recovery efforts are promoted. A stable internet connection will ensure your files are backed up to the cloud.
Organisations can protect themselves against costly cyber threats and data breaches with a DMS. Using a DMS, sensitive documents can be controlled more effectively, and you can grant access to different groups and individuals at the folder level. The ability to restrict access is often available, and it is possible to track who has viewed or modified a document at any time. Business owners can also supplement other security habits by using a DMS to protect the integrity of their business data.
Document management services powered by the cloud are becoming increasingly popular. Examine your system and see if a cloud based Document Management System can provide the advantages you need if you're lagging behind in how you handle your files. You may find that a quality DMS is well worth the expense if you're tired of spending your limited time on outdated communication and arduous IT decisions.