by Morgan O'Mara
| Updated November 8, 2016 | Document Management
| 3 min read
Document management is how your organization stores, manages, and tracks its electronic documents.
Often referred to as a Document Management System (DMS), it is the use of computer software to store, manage and track electronic documents and images captured though the use of a document scanner.
If you are wondering why your business should switch to document scanning, here is a list of the many advantages of a document management system:
Advantages of a Document Management System
- Relief of paperwork burdens through improved process efficiency
- Minimization of the possibility of lost information and liability
- Sharing of information among many users simultaneously
- Improvement of service and response to customers
How does it work?
Document management systems turn paper into digital images such as PDF or TIFF files that can be stored electronically and, with software help, searched or edited. Here are several things to look at when considering DMS Software:
- Will it allow you to create PDFs and convert the images to searchable files?
- Will it scan documents like receipts and invoices, pull off key information and then make it portable to applications such as Quicken and Microsoft Excel and Outlook?
Keep in mind that you’ll also have to maintain paper files and weed through them at the end of each year, although the amount of these files should be much smaller than before. These documents include notarized documents and materials you need to prepare for tax season.
While you may be tempted to scan your receipts and toss the paper originals, don’t do it. You may need them as proof for a tax audit.
Keep all bills, invoices, receipts and canceled checks related to deductible expenses for three years after filing tax forms. At that point, shred them to prevent identify theft.