What is document management?
Chances are, you already have some form of document management — even if you’re not calling it that. Digital document management is using software to organize, manage, and track your business’ files.
This covers every stage of the document lifecycle, including:
- Drafting
- Sharing with colleagues or clients
- Reviews and approvals
- Saving the final version where everyone can access it.
When it comes to how documents are organized, there are two schools of thought.
- Using folder structures
- Using metadata
Folder structures
Folder structures are a more traditional approach and will be familiar to anyone who’s used their file explorer to find documents.
Using this option means documents are organized under a series of folders and sub-folders, creating a clear hierarchy of information.
Most people find folders and files intuitive to use. They’re especially helpful in situations where you don’t know exactly what you’re looking for, so you’d like to see a snapshot of files for a specific client or team.
Metadata
Metadata doesn’t follow this hierarchy, instead tagging documents by using descriptive information that’s linked to files.
For example, information like titles, dates, client names, and keywords can be used to search for and retrieve documents.
This method makes files highly searchable and has the benefit of being able to categorize a file under multiple tags instead of a single folder. However, it relies on everyone tagging consistently and knowing what to search for.
What is a document management system?
Document management systems (DMS) standardize document workflows and provide easily repeatable processes at scale.
Think of all the document admin that you do throughout the day: creating standard documents, generating folder structures or tagging files, and requesting documents. When done manually, these everyday actions take up much more time than necessary.
To keep time spent on these tasks to a minimum, a DMS will often have purpose-built features and integrations. For example, a standard accounting DMS will feature a client portal, text search, email management, and filing built in while also integrating with practice management apps.
Document management systems are often tailored to a specific industry to suit the workflows and apps of that niche.
Here’s a breakdown of what that looks like:
Accounting document management systems
Accounting document management systems add value to a practice with security features to safeguard sensitive financial information.
They also integrate with the accounting apps in a practice’s tech stack to remove the hassle of double handling information. With the right document management system in place, accounting practices can cut down on admin time and maximize their billable hours.
Engineering document management systems
Engineering firms need to handle different file types, so designs can be stored in the same place as related documents. Engineers may prefer cloud document management systems that give them remote access, making it easier to record information and update details on the go – for example, when they’re on a site visit. Having these features at the ready increases the likelihood of projects being delivered on time.
Legal document management systems
Any document under review in a law firm needs an audit history tracking the changes that have been made. Many firms need document templates that can be updated with client information. This protects the firm’s reputation by preventing costly data entry errors. It also allows lawyers to delegate work to lower-cost staff.
Whichever industry you operate in, document management systems can help you centralize key business information and save time by automating manual workflows.
How does a document management system work?
A document management system covers three key functions:
Document capture
Like the name suggests, document capture is the process of gathering documents from different locations. A common example is transferring paper documents to a digital format so that businesses can keep their continuity when moving to a DMS.
Document capture can also refer to saving emails so that businesses have all the context from their interactions with clients. Captured documents are then indexed, with information like “file type”, “creator”, and “date last modified” applied to them for easier sorting and identification.
Document storage
Document storage is where all documents are eventually saved and accessed from.
More specifically, it’s where institutional knowledge and client information is organized and made available to your team.
The flip side of storage is document security. If files are all being accessed from the same place by many staff members, the platform holding them needs to be secure.
The first measure in place is data encryption, which locks documents until the right credentials are given – for example, until a staff member logs in.
This is followed by access controls which allow administrators to choose which staff can access particular files.
Document retrieval and sharing
If you’ve ever gone looking for a file from a few years ago, you’ll know businesses with thousands of files need quick ways to find the needle in the haystack.
Document retrieval uses features like full text search to provide instant access to documents which can then be shared with colleagues and clients.
Document management systems offer these end-to-end workflows so staff members can draft, review, and share documents all from a single platform.
