Moving from paper-based processes to digital workflows costs time and money, but it’s a worthwhile investment. Why? Digital technologies such as document management systems can help businesses increase efficiency, deliver convenient customer experiences, and improve security and compliance.

 

What is a document management system?

A document management system is a tool that enables companies to create, manage, track, share, and store documents digitally. The best document management systems have built-in security features such as encryption and access control to protect business records from unauthorized access.

 

What are the benefits of document management systems?

Document management solutions benefit companies across all industries by automating document-based processes and ensuring that compliance and security requirements are met.

Some of the main advantages that document management systems provide are:

Higher efficiency

With document management software, companies can automate time-consuming tasks such as capturing and routing documents, chasing signatures, and sharing information between various systems.

You can also say goodbye to all the hours spent trying to find documents in filing cabinets. Document management systems allow you to find and access the documents you need with the help of search functions.

By reducing manual work, document management systems help your employees free up time to focus on high-value tasks. This, in turn, increases efficiency and positively impacts the bottom line.

Increased security & compliance

Managing and storing paper documents leads to increased security and compliance risks. Paper-based processes make it easier for unauthorized people to access the documents, read their contents, and manipulate them.

It is also much more challenging to meet the legal requirements regarding data retention when dealing with physical documents. Data retention issues vary, from losing or misplacing documents that you are legally required to keep for a certain amount of time to storing documents longer than necessary.

Document management systems employ access control and multi-factor authentication to ensure that only the right people can access the data. They also create audit trails that record all actions performed on the documents, so you’ll always know if someone edited them.

When it comes to data retention, document management systems allow you to schedule automatic deletion based on the requirements that apply to each type of document. For example, in Denmark, KYC documentation should be automatically deleted after 5 years from the end of the business relationship to ensure both AML and GDPR compliance.

With the help of encryption, backups, and other cybersecurity controls, document management systems protect your files against cyber threats and ensure business continuity.

Better accessibility

Remote work is here to stay. Therefore, companies must provide their staff with the tools they need to be productive when working from home.

By relying on cloud-based document management systems, you facilitate your employees’ access to documents. They can use the system from anywhere and on any device, as long as they have an Internet connection.

As an added benefit, you will cut down all the costs associated with physical document storage.

Improved collaboration

When multiple people have to work on the same documents, things can quickly get messy. Document management systems simplify collaboration by allowing employees to share folders and documents, synchronize changes, and see all the different file versions. They also allow you to roll back contracts, agreements, and other files to previous versions if needed.

Audit trails give you a complete overview of the document lifecycle, including who performed actions on the documents, what they did, and when.

 

What are the 5 best document management software?

Some of the most popular document management systems are:

1. eFileCabinet

eFileCabinet is a cloud-based document management system that allows you to automate document management across all departments of your organization.

With eFileCabinet, companies can:

  • use automation rules to route documents to their correct locations
  • create approval workflows
  • apply retention rules to meet legal obligations
  • share, request, and import documents
  • make notes on the documents

2. FileCenter

FileCenter is an affordable document management platform that provides a wide range of features such as:

  • file management
  • built-in PDF editor
  • document scanning & OCR
  • integrations with cloud-based apps (SharePoint, Dropbox, Google Drive, etc.)
  • automatic document routing

With FileCenter, companies can manage and organize their documents in a simple and efficient way.

3. Open KM

Open KM helps businesses manage and track documents throughout their entire lifecycles. The solution streamlines document management by allowing users to:

  • set automation rules based on various events
  • track and verify document transactions with the help of audit trails
  • restore documents to previous versions
  • digitize paper documents via OCR technology
  • integrate the software with the tools they use

4. M-Files

M-files is a metadata‑driven document management platform that enables companies to work more productively by automating document-centric workflows.

Notable features of M-Files include:

  • automatic metadata tagging
  • access control
  • digitization of documents with OCR
  • automated workflows
  • version control

With M-Files, companies can meet compliance requirements and optimize document-heavy processes.

5. Penneo Sign

Penneo Sign goes beyond a document management system. It is a powerful solution that takes care of all your document-based processes — from signing and tracking to secure storage and management.

Designed for businesses working in highly regulated industries, Penneo Sign places a strong focus on security and compliance. The platform boasts the following features:

  • audit trails to document compliance
  • encryption of stored data
  • digital signatures to ensure the integrity and authenticity of signed documents
  • regular backups to protect against data loss
  • automatic reminders to make sure that business documents get signed on time
  • automation rules for document routing
  • access control to make sure that only authorized people can access the documents
  • complete overview of your documents’ statuses (sent, opened, pending signatures, etc.)

Penneo Sign was built from the ground up to meet the needs of document-intensive businesses. User-friendly and automatic, Penneo Sign reduces the manual work involved in document processes so you can free up time to focus on delivering a superior customer experience.

 

 

If you're looking to learn more, we have a few suggestions for you

Danish businesses struggle to comply with the Money Laundering Act

The Danish Business Authority found Danish businesses struggle to comply with the Money Laundering Act

E-sign documents with Swedish BankID

E-sign documents with Swedish BankID

5 Skills Every Successful HR Professional Should Have

5 Skills Every Successful HR Professional Should Have