Document management systems are great tools for any business looking to streamline its workflow. Not only does it help them organize their documents, but it can also reduce the amount of paper used by digitizing them into a central place online. There are many benefits of using document management systems that will save businesses time and money.
Advantages of Document Management Systems:
1) Lower paper usage
One of the main benefits of having a document management system is reduced paper usage. For example, by allocating one filing cabinet drawer to each file instead of dozens or hundreds, an organization saves thousands on storage space, replacement costs for broken or outdated cabinets, and energy expended for climate control in server rooms. It also reduces the number of trees needed to create new files because most employees store digital copies on their computers, smartphones, or tablets.
2) Reduces paper trail
When employees have easy access to filing cabinets, they are less likely to request copies of documents that have already been filed away. This reduces the paper trail because it is simply not needed for common requests anymore. This saves time for their employees and makes life easier for them by making documents more accessible.
3) Increases security of confidential information
One concern about digitizing files is that it will make them more susceptible to hackers and theft. But keeping all physical copies in one location actually increases the risk of losing multiple pieces of data at once due to fire or other natural disaster damage. By storing digital copies across several secure servers rather than on one physical computer, an organization dramatically reduces the risk of data loss.
4) Reduces critical downtime
When employees are using paper documents, they need to know exactly where to file them when they’re finished with them. If there is no clear place for a document, it can be lost until someone puts it back in the wrong spot, which takes up time and could cause a mistake. With a filing system with clear routing, one can ensure every document goes into the right folder, and nothing falls through the cracks. This decreases employee mistakes and eliminates wasted time spent looking for misplaced documents.
5) Allows storage of electronic formats
Most DMS allow employees to store non-paper files such as spreadsheets, presentations, audio files, and images. Some even let them upload files from their smartphone so they can access them anywhere at any time. This increases productivity by allowing employees to get more work done because they can find documents quickly and easily.
6) Increases organization of records
Documents usually come in a pre-defined format that their system recognizes, such as a .jpg or .pdf file type. By automatically identifying the files’ formats, it will help users organize their folders into parent/child relationships by naming conventions rather than manually sorting them out all the time. In addition, this helps employees locate information faster because everything is categorized to make sense for their workplace, which saves time and effort when looking through records.
7) Reduces paper-pushing tasks
Paper pushing is when employees are asked to do clerical work on hardcopy documents rather than more strategically related items. Many organizations have reduced or eliminated paper-pushing through document management systems because they are able to convert their physical documents into digital copies, which frees up time for employees to focus on more critical issues that directly affect the organization.
8) Saves time by eliminating re-filing efforts
When an employee needs to find a certain record, it takes longer if no organized filing system is in place. Employees spend around 10 – 15% of their total day looking for misplaced files, making them less productive. But once the records are all digitized, one can save hours each week because employees won’t have to spend time filing documents away after they are done using them. This allows them more time to focus on other tasks that are more critical for the business’s success.
9) Removes the need for paper backup
When they have a hard copy of their document, it is easy to store it in a safe place just in case something happens. But digital files are not easily destroyed by fire, water, or any other natural disaster, so they don’t have to worry about losing data if there is an emergency. This also reduces the risk of theft because all records are kept in one secure location.
10) Improves customer service
E-mails and phone calls take up valuable time while customers wait for a response. When an employee is able to locate a document quickly, they will be more efficient, which saves the business time and money. Customers notice this efficiency whenever they contact a company with a question, and it helps build trust.
11) Provides better control over records
A DMS has built-in security features that let them define who can access certain documents depending on their function in the organization. This improves compliance because they can limit employees’ access to information based on what tasks or projects, they are working on so no one views sensitive data by accident.
12) Maintains accessibility of records during operating system upgrades
When they have paper files, there is a chance that employees won’t be able to find a single folder if they don’t have a system in place. When they digitize their records, it allows employees to access the data from any computer, which means they’ll never get locked out of their files.
13) Enhances user experience and readability
Employees often complain about having an extremely difficult time finding the correct file when it comes from older filing systems that aren’t set up efficiently. This wastes everyone’s time because no one can locate information quickly or at all, which makes it more challenging for them to get work done on time or even accomplish their work-related goals. A DMS helps eliminate this problem because employees can easily find what they need while staying organized and productive every day of the year.
In short, the benefits of document management systems are viable and satisfactory.