Document Management System

Owning a small business can generate a large volume of paper documents. Organizations and governments manage their document storage and retrieval in a variety of ways.  Recently, organizations have been replacing their laborious paper-driven process of delivering, storing and retrieving documents with computerized document management systems. There are many document management systems out there, but most offer similar benefits.

Securing paper files once required locked filing cabinets and sign-out sheets that were slow and unproductive.  Document management systems provide organizations with the ability to encrypt documents and assign levels of security to each file. Files can be assigned to employees of certain departments or to specific individuals. A document management system tracks each retrieval, noting who has viewed the contents and applying a date and time stamp for auditing purposes. Not only is the process of securing a document more effective, but it’s also easier for the company and its employees.

When an office is affected by a fire or water damage, paper files often are damaged beyond repair. Even without damage, paper documents are lost, destroyed and misplaced on a regular basis. Document management systems eliminate the risk of losing documents by creating back-up files that can be uploaded to an off-site data center.

Document management systems also provide an effective way to forward documents to staff.   Staff members can forward documents to several employees simultaneously, permitting each to review, annotate and comment on the contents. Users also can forward documents to individuals in sequence, with the comments of earlier reviewers attached to the file for approval or review of senior management.  Consider performing a cost-benefit analysis of implementing a document management system.

/posted by Drew Ulmer, CPA