How You Can Benefit from Document Management

How You Can Benefit from Document Management

Written by Jane Travis on 7 May 2021

How You Can Benefit from a Document Management System

Along with the growing volume of mandatory electronic reporting to regulatory authorities, an increasing number of files and paper documentation acquire a mandatory electronic form every day. Now a significant number of counterparties want to exchange legally important information only through electronic document streams. To remain a competitive and promising market participant and not lose critical advantages for stable and long-term development, a modern company needs to respond timely to environmental demands.

Therefore, it is not surprising that electronic reports and document management have become crucial digital business elements. Internal document flows are needed to manage the reporting and improve the quality of governance; an external document exchange is necessary for the prompt guaranteed exchange of legally significant information with counterparties and regulatory document management.

Pros of electronic document management

The main benefit is time: a worker spends less time on report management and more to increase efficiency, just like a student can buy an essay and use some hours on personal issues. Other advantages include the points below:

• Increased speed of calculations (this is especially important in medicine when using medical devices);
• Reduced time spent on processing files;
• The ability to quickly prepare a pool of necessary files for a tax audit or any other event;
• All invoices are available upon their formation;
• Convenient storage and retrieval of files;
• Reducing tax risks: instant, confirmed sending of files on tax obligations excludes fines and penalties;
• Acceleration of settlements and payments;
• Improving performance discipline - providing paper files on time, approval, etc.;
• Loss of files are excluded;
• No printed documentation;
• Significant reduction in storage and processing costs.

A successful project for the transition to electronic document management software will give the company undeniable advantages: an employee saves up to 30% of the time spent on approving and searching for information and digital files, the cost of consumables is three times reduced, labor productivity is increased up to 25%, and the cost of storage is reduced up to 80%.

The concept of electronic document management

An electronic document is data presented in electronic form, at the same time suitable for human perception using a PC or management software, for exchange via telecommunication channels and processing on electronic devices. They are applicable in various industries. For example, there are medical devices for the fast transmission of information.

An electronic document management software is an automated (based on a program or service) multi-user system that supports the organization’s management process. It is assumed that the management process is accompanied by human-readable files, which are instructions for the organization’s employees.

Electronic signature - the requisite of an electronic document to protect it from counterfeiting and endorsement. All types of signatures can be used:

• Simple - for letters and specifications (developed using codes and passwords);
• Reinforced unqualified - for files with identification of the signer (developed using cryptographic data transformation using an electronic signature key);
• Reinforced qualified by certification centers with special accreditation in crypto protection tools (certified to approve invoices and report to regulatory authorities and funds). This type is not mandatory for internal EDM, for example, for the exchange of digital files with subsidiaries, branches, and structural divisions.

An electronic document is equated to an analog file on paper with a handwritten signature.

Pros and cons of intercorporate electronic document management systems

To organize an external electronic document circulation, you first need to create and launch an internal one using modern electronic document management systems. When preparing to implement it, it is necessary to carefully assess all the possible risks, pros, and cons of a project.

The main disadvantage in the implementation of the system remains the human factor. Employees must view the new management systems’ advantages to avoid internal sabotage using the software. Further, they will receive qualified training to work in the system, which can also cause adverse reactions.

Working in document management systems will require creating a competent support and maintenance service capable of promptly answering all user questions, quickly eliminating problems in working with the system, and keeping up-to-date operational documentation - regulations, instructions, memos. This means that the company will have to carry out converting existing paper files into electronic forms.

Implementation of electronic document management software within the organization

To mitigate any adverse reactions described above. It is necessary to plan the implementation properly, prepare and train the project team, involve professional analysts and methodologists of electronic paper-based systems, and provide an efficient and resilient IT landscape and communication channels.

Only a well-planned project can be successful. Otherwise, there will be unreasonably high costs for correcting the mistakes made, management systems will not work, and will become a source of constant problems and internal conflicts.

Advantages of HR electronic paper documentation

HR workflow is an integral, very voluminous, and legally regulated part of any organization’s internal workflow. In these electronic paper documentation or their processing, errors can lead to heavy fines and penalties from the regulatory authorities. So, what other benefits of document management have an HR department? Electronic HR workflow will minimize the main risks in this area, ensure the required level of confidentiality, and, at the same time, the availability of the necessary information.

With the help of HR workflow, you can:

• Maintain personal cards of employees;
• Document all staff movements;
• Maintain an archive of records of dismissed employees;
• Organize a personnel reserve;
• Maintain the forms of the staffing table and the reference book of positions;
• Easily print any report forms.

Stages of creating an external EDM system

Building an electronic document management system within any given organization begins with changes in the accounting policy and a corresponding order’s issuance.

Next, you should conclude agreements with each counterparty with whom you plan to establish an exchange. The agreement must contain the rules for creating, transferring, and storing paper files and a complete list of digital files for exchange.

After the conclusion of contracts with counterparties and the operator, the system is ready for work: you form, sign and send a file via secure communication channels, the operator transmits the file (possibly through roaming), the counterparty receives it, verifies, and posts the document.

Bio Jane Travis: Jane has been working as a content writer in an IT company’s marketing department for five years. At the age of 27, she received her second degree in journalism. Jane often writes on various topics and shares her knowledge and working experience to train future professionals in different fields.