Home Business Importance of Document Management for a Company

Importance of Document Management for a Company

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Few managers and entrepreneurs give due importance to document management. Therefore, most of them manage their documents inappropriately, putting the company in situations of tax and labor risk. It makes no sense. After all, what advantage will the organization gain from the large volume of information it produces and receives if it does not have good document management?

Having this administrative tool is very simple and requires a low investment. Currently, there are several document management solutions including documentation tools like those provided by ClickHelp that, combined with scanning and consulting services, provide an excellent cost-benefit ratio. In addition, by doing your document management correctly, you will create a record of your entire project management, ensuring that, in the future, you will be able to easily access and remember important details of all your projects; especially if you use a digital management system which uses a secure database to record all the information added to the system.

In this post, we will understand the importance of this process and how to achieve excellent results. Check out!

What is document management?

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Initially, it is necessary to better understand this administrative tool. Document management is a set of procedures that allows for the organization and adequate storage of documents in an efficient, safe and intelligent manner, allowing for quick localization and disposal at the time determined by current legislation.

How important is this procedure for the company?

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Every day, companies produce a gigantic volume of files that, in turn, contain extremely valuable information. And, currently, these data are considered the main asset of a company and have become competitive resources.

They are fundamental information, such as:

registration data;
corporation statistics;
records of internal procedures;
contracts with suppliers and customers.

Therefore, the concern with control and security must be constant, as the loss of a single document can generate losses practically immeasurable.

However, many managers take the wrong measures to manage this asset, causing a high risk of:

exposure of sensitive content;
delay and difficulty in locating information, especially in urgent cases.

In this way, the implementation of document management becomes increasingly necessary in institutions. The good organization of company documents provides a better workflow for everyone, in addition to facilitating the monitoring of processes. See our article on the importance of improving workflows in your company to understand how document management can impact this aspect of your business.

Why invest in document management?

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Poor document management can lead to lost time, make procedures more complex and increase the corporation’s indirect cost – factors that significantly compromise the results of the enterprise.

Document management why to do it

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In addition, the constant advancement of technology has changed the way organizations manage their information. In other words, it is necessary to be able to meet the needs of the increasingly technological market. Without intelligent management of its documentation, the institution is unable to optimize its operations and its organizational processes, in addition to not having an efficient structure to support its decision-making.

How can document management be a strategic tool?

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Document management has been used as a safe, fast and efficient way for companies to achieve results and stand out from the competition. This is because it ensures that the information produced is well managed, ensuring its traceability and confidentiality, in addition to promoting operational efficiency in the development of routines and in the control of documents – from its production to its destination.

What are the benefits of document management?

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With the growing volume of data produced, document management is a tool that brings numerous benefits to the entity, such as improved productivity and the quality of the decision-making process.

However, the advantages are not limited to this. We can still quote the following.

Saving physical space for archiving

Even with the increased presence of digital storage, some documents need to be physically printed and accessible to teams. Naturally, this causes your business to start accumulating a lot of paper, which generates resource costs and, mainly, space. An important part of your document management strategy here is to know which documents need physical copies and which can be archived digitally. This will help to optimize the space inside the office.

Reduction of operating costs

Cutting unnecessary expenses is the norm in any company, without exception. Letting those small costs accumulate soon will start to disrupt your business. This also applies to strategic document management. Scanned documents alone eliminate both the cost of space and the cost of printing, which involves ink and paper. And the costs of maintaining a server or connecting to the cloud are very close to the energy cost that would be spent on hundreds of impressions.

Security and confidentiality of information

Data protection is a vital part of your document management strategy. Ensuring the confidentiality of the information of its customers, partners and employees is one of the greatest responsibilities of every company today. With good planning, you should have no trouble maintaining an adequate level of security. Firewalls, threat detection software, staff training, among other things, save many resources in the long run.

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Time optimization of activities and processes

The execution time of each task within the company depends on several factors. Ideally, this time will be short. Good document management software is a great ally that can also impact your people management.

Better management of financial resources

Financial management and document management always go hand in hand. To monitor the cash flow of a business, it is important to have a series of records, such as purchase and sale receipts, balance sheets, among others. Therefore, knowing how to better manage these documents directly implies the ability to perform good financial management.

If you follow a well-developed document management strategy, you will soon see the positive effects of these practices on your daily life. As we already mentioned, your employees can find the data they need, the company can grow in a more orderly way and the data of its customers will be more secure.

Finally, document management can help you better manage your business. Using technology to optimize business documentation is a smart and strategic way to enjoy all the benefits it can offer. Therefore, carefully analyze your document management and consider the need to make good use of the features of this tool, assessing the best alternatives for electronic document management for your company.