Every business entity deals with at least one workflow, regardless of its size. Even that simple lemonade stand you passed by on your way over to work has a process for creating lemonade from raw lemons as a workflow.
How effectively you can execute your workflow will ultimately determine your overall productivity and efficiency. For businesses that deal with multiple documents at once, having an efficient document flow can prevent human errors and redundancy while ensuring that tasks are completed steadily.
But how do you achieve an efficient document flow? Enter document management software systems. Using a powerful document management software solution, you can automate repetitive and mundane tasks so that you can allocate more time and resources on other pressing business matters.
Outlined in this article are things you need to know about document management software systems, their benefits, features, and how you can find the right solution for your operations.
What Is a Document Management Software System?
Have you experienced misplacing a document and spending hours looking for it but all efforts went to no avail? Then your colleague or friend tells you in their most dismissive tone: “Stop looking for it. You will find it when you find it.”
And more often than not, they end up right. The moment you stop looking for that document, you find it tucked in a group of other papers as if enjoying every moment of the little hide-and-seek game it obviously beats you at.
That is all fun and games. But what if that certain document is the one your team needs to get a time-sensitive project started or perhaps help you avoid a lawsuit?
This is where document management software systems can help. The best document management software in 2022 empowers you to store and retrieve documents, collaborate effectively, and promote timely archiving of records.
It ensures that all of your files and data are organized in one place so that you can access documents 24/7. In doing so, you can achieve efficient and speedy document workflow while ensuring overall accuracy.
How Does a Document Management Software System Work?
So how does a document management software system actually work? In simplest terms, it captures, stores, and distributes documents.
Let’s dive even further.
A document management software system’s primary objective is to perform document capture from any source. This can be either from paper documents, emails, system-generated reports or any application.
With document capture, you can add essential information to your documents’ metadata such as customer or order number. Done well, document capture ensures that you can access any file tomorrow or five years down the road.
Considering that it takes an employee 18 minutes daily to locate a file, having a document management system ensures that your teams will remain efficient since they will no longer have to spend a massive amount on non-constructive work.
Document management software systems have central document storage as well. This makes it easier for employees to gain access to business documents and reports, which, in turn speeds up the decision-making process.
More importantly, it provides robust security protocols, which include version control and user permissions. With version control, you can revise documents quickly and gain a comprehensive view of the changes that were made throughout its lifecycle.
It also has user permission capabilities so you can define user rights to author, revise, view, and route or delete documents. Furthermore, document management software systems can distribute and retrieve documents quickly through indexing.
What Are the Benefits of Using a Document Management Software System?
Now that we have established how a document management software system functions, you might be wondering what’s in it for you? Is it even worth splurging money on? Read the benefits and see for yourself.
- Reduced storage space
The cost of storing paper documents can add up quickly as you grow. After all, you have to purchase and make room for storage bins, cabinets, and boxes. For startups and small businesses or even large enterprises looking to achieve proper organization and easy retrieval of documents, this is not the way to go.
Since a document management system is a software-based solution, you will be able to free up space and store documents that have to be kept as hard copies in less expensive locations such as a vault or an off-site warehouse.
- Improves regulatory compliance
Compliance requirements for specific documents can be complex. But that does not mean you do not have to adhere to these guidelines. Don’t conform and you may find yourself charged a hefty fine or have your licenses revoked.
The advantage of a document management system is it can make compliance with the Occupational Safety and Health Administration, the Health Insurance Portability and Accountability Act and other tax laws easier.
This is because the document management software system can automatically organize and secure files per specific regulations and store them without a hassle.
- Enhances productivity
Since the document management software system has a centralized repository, your teams can find what they need immediately and know at a glance how recent your files are.
Moreover, it encrypts business-critical documents regardless of whether you are storing or sending it to a colleague.
This simplification and protection ensures that everyone on your team can share all types of data quickly and monitor project deliverables efficiently.
With security in place, your document management process can safely be integrated with key business processes like CRM and product development. As several monday.com reviews point out, document management provides a key product lifecycle support.
What Are the Key Features of a Document Management Software System?
Similar to other business applications, the market is inundated with a myriad of document management software systems.
In fact, recent data shows that the market size for document management software systems is expected to grow to as much as $16.42 billion by 2029.
Therefore, you must carefully consider the features you need to make your processes more efficient.
Since no two businesses are the same, the features you need will always differ from your competitors. Regardless, here are some key features that make a good document management software system.
- Powerful workflows
Using powerful workflows, you can centralize document processes from start to finish. This makes it easier to route electronic documents and files for payment, order-to-ship, approval, and other processes.
- Document indexing
Document indexing allows you to organize and tag the documents’ metadata with different search terms. This makes the entire filing and retrieval of documents as quick and simple as possible.
- Comprehensive reports
A document management system can generate and deliver reports in proper formats and eliminate the need to spoof files. Through reports, you can tune up your processes for better performance and profitability.
- Advanced security features
With robust security protocols, you can protect your documents from threats and maintain oversight on your entire document processes. It also provides an audit trail and supports a secure sockets layer encryption for added protection.
How Can You Get Started With a Document Management Software System?
Implementing a document management software system is a telling sign that your business is growing.
However, moving to electronic document management from manual paper-based document management processes can be challenging, especially if you don’t know where to begin.
Although there is no one-size-fits-all process on how you can get started with a document management software system, a good start is to establish your goals and clearly define what you are looking for in an ideal solution.
Alternatively, you can take advantage of comprehensive product demonstrations and free trials to cut down on your expenses. In this way, you can see how the software works in real-life situations before you commit to a vendor.
Product demos are usually hosted through screen sharing and can take only a few minutes to set up, making it easier to fit right into your tight schedule.
Asking niche-related questions during the demo is also essential in determining how it will be effective in resolving pain points.
Optimizing Document Workflows with a Document Management Software System
Manual documentation processes slow your team down. Instead of concentrating on their main duties, they are left completing administrative tasks. With a document management software system, you can optimize documentation workflow by digitizing and automating processes for increased efficiency.
