7 Document Management Methods Help Your Accounting Team Plan Ahead

Document management is an inevitable aspect of every business, however, when starting from box one, the task of implementing the document management system is arduous - Even more if the company moves from a fully paper-based system, the appropriate document management system allows the business to store and retrieve documents, cooperate effectively as a team, organize digital and physical materials securely, and ensure timely archiving or disposal of records. This system should be able to expand with the company and adapt to its constantly changing needs, how is that? Read on.

What is document management?

Document management is a system or process used to capture, track and store electronic documents such as PDF files, text processing files and digital images of paper content Document management can provide you time and money, providing document security, access control, central storage, audit pathways, search and simplified retrieval In order to manage their digital documents, take advantage of additional security, access control, central storage and streamlined search and retrieval options, many companies benefit from document management tools and systems.

What are the benefits of the document management system?

The document management system enables the automation of enterprise document management processes, saving you and your employees valuable time, through effective document management can:

Retrieve appropriately structured and tagged documents more easily - which also saves time and also reduces frustration among your employees and customers.
Improve collaboration and teamwork as document management systems ensure that team members always have access to the latest version of the document.
Capture identifying data through automated processes as well and help validate and verify your documents, classify them, improve employees' workflows and enhance collaboration capabilities.
Track the document record from creation to editing and downloads, and this information is essential for industry compliance practices and audited companies.
View, share and edit documents, through security features included in the setting of access rules and permissions.
Back up paper files previously, as well as digital files such as emails, so as not to get lost.
Improving productivity as the use of document management system means that employees do not waste time searching for files in many cloud-based computers, applications or platforms.

Document management also helps maintain:

Confidentiality with teams, customers and partners
Efficient workflow and systems
Compliance with industry standards and regulatory authorities

Ways to manage documents successfully

One of the core objectives of the document management system is (return on investment). For this to happen, the company will need a document management system with a strong methodology that supports it. Below are 7 document management methods that help your accounting team plan ahead:

1. Specification of document type

Word document management describes the process of capturing, storing and retrieving previously electronic versions of paper documents through PDF files, text processing files and digital images. Hence the first step of document management is to identify the different types of documents the company needs to manage, as this can include legal agreements (such as service level agreements), HR documents, financial offers and more.

2. Access Management

When you implement a new document management system or update your current system First, you need to plan how the process is going, you need to be clear about how to add, organize, store, retrieve and manage access to information. by determining who should have access to each type of document and its roles and responsibilities, This document management step helps ensure that only authorized individuals have access to sensitive information.

3. Storage & Retrieval

You must be aware of how documents are stored and retrieved when needed. This can include a combination of physical storage and electronic systems. When documents are properly stored, retrieving documents using a basic word search is relatively easy. Searching by name, address, seller, any keyword or other simple phrase provides a list of documents containing that word or phrase.

4. Enable automated retention schedules

The use of the document management system allows easy access to information such as storage date, invoice and use of such data to start an automated business. From there, the rules of work determined by how long you need to keep different types of documents such as invoices and financial statements.

The document management system automatically scans documents that your organization does not have to keep, and the document management system provides workflow tools to enable retention and destruction at predetermined times to keep your business compliant and protect it from litigation.

5. Audits

Using the document management system your accounting department is better prepared because the documents can be immediately retrieved through the search standards you set This allows your team to respond quickly to the auditor's requests and maintain greater control over document information, Each pick-up, release and caption of the document is recorded for full tracking and each step of the process is recorded for the transparency of the process.

6. Document Management Policies

Clear document management policies, including guidelines for the creation, storage, access and disposal of documents, must be developed and implemented. For example, instead of switching between file cabinets, office drawers, email boxes and other places where documents may be stored, The document management system will provide you with fast and secure access to documents in one central location while the preparation time for the audit is essentially eliminated when picking up your documents and converting them into searchable PDF files and storing them in a digital document repository.

7. Disposal of documents

It's time to get rid of the mess and those files that take up only space and are likely to cause liability risks, and therefore your team has to start identifying all the unnecessary documents discovered during the inventory and potentially dispose of them, and will eventually transfer this task to their respective groups.

Conclusion:

The way you store your documents, especially accounting documents, has a significant impact on your ability to plan for the future. When it is difficult to retrieve documents - Or lose it - This may create serious problems during your next audit and limit your ability to produce detailed cost analyses and budget planning. Document management must be effective to meet legal and regulatory requirements as a core priority for each section, especially with regard to accounting document management.