Let’s face it, paperwork isn’t fun. Nobody likes having to sort through page after page of paperwork only to realize that some of them got lost in the process.
This is where an electronic document management system comes in to save the day. Ideally, you have started your business using one of these systems but, if you haven’t, converting to this kind of organization is possible.
In this post, we’ll show you the basics of electronic document management systems and how they can help your business.
What is an Electronic Document Management System (EDMS)?
An EDMS is software that organizes and stores different types of documents for you electronically. Think of it as an advanced, electronic version of a filing cabinet. By using a document collection and management system, you can store and organize thousands of files without facing any problems when retrieving documents whenever needed.
How does an EDMS work?
A typical electronic document management system works in a three-step process that includes:
Step 1: Document and data capture
The documents can be stored by capturing them first from any source. More often than not, EDMS users will do it by saving email attachments, but many companies also save paper documents through a high-speed scanner.
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You’ll probably want to add metadata to these documents for more precise EDMS indexing. This includes dates, topics, keywords, or any other classification system that may be useful for your business.
Step 2: Central document storage
After scanning and indexing the documents, it’s time to store them in a digital format. It’s generally important to make these electronic records accessible by most (or all) employees to enable file sharing and real-time collaboration.
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An EDMS lets you control access permissions in many ways, so you’ll have to set it up the way that suits your organization.
Step 3. Document retrieval/distribution
The third step is document retrieval, preferably at a moment’s notice. This is when the previously categorized metadata comes in handy since you can use a search function to easily bring up a document. In addition, EDMS also allows for file sharing via email or uploading and sharing through an app for easy distribution.
How can an EDMS help my business?
Now that we know what an EDMS is and how it works, let’s consider how it can help your business.
It helps your business run more efficiently
Having to call a customer back or put them on hold for ten minutes to find a file is not helpful when it comes to time management. There are only so many minutes in a day to get things done so being able to quickly pull up a document can make a big difference.
As a business that is just starting out or even as a well-established one that’s been around for 20 years, there has undoubtedly been a time when you couldn’t locate a file that you absolutely needed. This could have resulted poorly for your business in terms of confusion between employees and may have even embarrassed you in front of a client.
On the other hand, businesses that use a reliable document management tool can save hundreds of hours every year. When you automatically add a file to an EDMS, you can retrieve it without having to sort through stacks of paper. The possibility of a paper file becoming lost is eliminated.
It saves your business money
This may sound like an overly ambitious statement, but an EDMS really saves you money.
For one, physically filing and retrieving paper files takes up valuable time. The time that you’re paying employees to file documents can be put to better use and redirected towards productive tasks that strengthen your business.
Secondly, you’ll need additional filing cabinets and more space as your company grows. An EDMS eliminates the need for the purchase of expensive physical storage systems.
It protects your business
An EDMS is the safest way to store files — safer than storing them in your email or hard drive and certainly safer than loose files sitting in your office. We’re all familiar with the data breaches and recent cybersecurity statistics, but an EDMS is set up for safety and security.
Apart from being safe, it adds an extra layer of protection by providing an onsite backup if both physical and digital copies of your files are destroyed.
It aids in good compliance practices for your business
Following good compliance practices is easy when it comes to choosing to store your files in an EDMS. For legal reasons and regulatory compliance, there is often a certain number of years you can keep files before you are required to destroy them.
Keeping up with this time period is easy when your files are stored in an EDMS rather than tucked away in a garage or a storage facility. An EDMS can also be set up to automatically destroy files that are dated past a certain time period, automatically ensuring your business is in good compliance.
Bonus benefit: Client onboarding made simple
Onboarding is often a critical stage of client relationships, and it’s best to eliminate as many obstacles as possible from this process. Collecting data and documents from your clients is a common obstacle, but you can overcome it using an EDMS.
Take Content Snare as an example.
Though it’s not a typical EDMS, it gives you excellent onboarding features that help you collect the necessary documents from clients in a timely manner. That way, you can prepare for your next project beforehand by gathering all the right files and information.
For instance, web designers use Content Snare to quickly collect content from clients:
The same goes for accountants collecting financial documents, real estate agents gathering property images, or any other type of business that needs to swiftly onboard clients. Thanks to our library of editable form templates, you can obtain files or information from just anyone in record time.
More importantly, Content Snare helps you manage files and folders with ease:
You can also spread the load across the team with access permissions while monitoring company-wide progress through an intuitive dashboard. Content Snare is how many firms overhauled their information-collection processes.
If you feel like it could help your business too, sign up for a 14-day free trial right now.