Documents, whether legal papers or receipts, are the veins of a business. They contain the details that a business owner needs to move forward, the costs that should be considered for business profit, and the progress of the company in relation to business performance. Without these documents, running a business would be near-impossible.
If you have ever dealt with paperwork and documents, then you know that it requires a considerable amount of time and effort just to read, sort, and store them. According to a report released by InfoRouter for 2019, 95% of business information is still detailed on a piece of paper.
For those tasked with the responsibility of handling such paper-based documents, document management is a tedious task that seeps away at an employee’s efficiency and productivity.
Faced with these challenges, developers and business owners have expended effort to create different types of financial technologies, or fintech, such as document management systems.
What is fintech, you ask? It pertains to a group of platforms that seek to improve and streamline financial delivery processes, which is part of the function of a document management system. These platforms have triggered an upward trend that has led to the introduction of multiple document management solutions.
Here are four reasons why your business should use document management software:
1. Save Time, Effort, and Resources
Doing documentation the manual way is time-consuming both when the process is started and when someone has a need for those documents. As such, the number one reason why your business should be using a document management system is that it saves a lot of time, effort, and resources that are normally allocated just for the documentation process.
For example, receipts and invoices are documents that are easier to misplace primarily because of their size. Filing them requires employees to spend a lot of time sorting them according to specific categories.
Business owners usually find themselves engaged in a frustrating cycle of storing the receipts and digging them up for later use. Document management systems seek to solve this problem by offering the ability to automate data entry and upload the receipts in a platform where it can be stored and found whenever it is needed.
2. Efficiency and Productivity Through Digitization
Aside from addressing the labor and resource costs of documentation, a document management system can also promote efficiency and productivity throughout the workforce.
Adopting this technology signifies the company’s digital transformation while also offering the employees a chance to move beyond the repetitive cycle of sorting, storing, and accessing documents. It affords them the opportunity to become more efficient and productive in their other responsibilities, which, in turn, promotes business performance.
While there are many document management systems examples that detail how such a platform can help, a simple way of illustrating the point is by using the given example about invoices and receipts.
Employing a document management software means that employees can focus more on learning how to extract valuable insights from the invoices and receipts they have. This includes finding a more cost-effective solution to a problem or even identifying a previously unknown issue.
3. Gain Instant Insights
Another benefit of document management software is its ability to identify the relevant data and turn this information into something that can be used to improve other business processes. The platform then produces the necessary reports and statistics that you might need to determine how to improve business efficiency.
Receipts and invoices, for example, hold an unprecedented number of insights that can be accessed when all of these documents are combined and analyzed. This leads to another related benefit which is that a document management system can expand a business owners’ field of view.
Instead of being limited to looking at a single receipt, a business owner can use the software to determine the bigger picture – the information that these receipts, when taken together, are trying to tell you.
4. Minimize Human Error
The final reason why your business should be using document management software is how it is capable of reducing human error. As much as it is difficult to admit, humanity is vulnerable to mistakes. In terms of documentation, such mistakes can come in the form of misplaced receipts, mislabeled storages, and missed insights.
A document management system shines in this area precisely because it can handle the more tedious parts of the process. As a result, employees can focus more on identifying what is relevant and what is not instead of worrying about whether or not they made a mistake throughout the process.
As technology becomes an integral part of running a company, business owners may face the challenge of determining which type of system should be adopted first or if they even need it at all.
In terms of documentation, the reasons given above make it clear that digitizing the process is nothing if not beneficial. Creating a list of document management systems that you could try is a good place to start the process of digitization.