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Advice for Choosing a Small Business Document Management System
Learn how to choose the best document management software for your small business.
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Organization is a key element of managing a successful business. Every company has unique organizational needs. However, the way you store, manage and track your internal documents can greatly impact the efficiency of your operations. To help you choose the best document management system (DMS), we spoke with small business owners about what benefits and features can best aid your office.
What is a DMS?
A DMS is an integral part of your filing system. It is comprehensive software that helps you convert your office into a paperless operation. This is better not only for the environment but also for your business — a single point of access for all your documents can streamline workflow and increase productivity.
Document management platforms often include scanning capabilities to convert your physical documents into digital files. This saves time that you might otherwise spend manually inputting all your information into a computer. The best software even has formatting capabilities to quickly convert your scanned documents into preferred or industry-specific templates.
In addition to scanning documents, most DMSs let you import your current digital files into one unified system. These documents can be word processing files, spreadsheets, PDFs, images and more. After you have successfully imported a physical or digital document into your management system, anyone with the appropriate permissions can access it. Most document management software allows you to set permissions and restrictions for access and editing. This allows your team to track and collaborate on documents. [Learn about the file management practices every small business should follow.]
How to choose a DMS
With a wide variety of DMSs on the market, here’s how to find the best options for your company.
Determine your document management needs.
Before you invest in a DMS, assess current issues within your business and determine what is needed to solve them. In the process, include employees who will use the system in the future to ensure the DMS solutions will benefit them. Additionally, consider the future growth of your business and whether the DMS can support you along the way. [Learn how to build a Microsoft document management system.]
Identify reliable vendors.
After you have identified your current business needs, conduct thorough research on vendors and their offerings. Avoid vendors that have a cheap one-size-fits-all approach. Rather, search for vendors with experience in the industry who prioritize security, provide customer support, and offer products that integrate well with your current systems and applications. Consider features, prices and solutions for each vendor before settling on one. It also might benefit you to talk with the vendors directly.
Prioritize security.
No matter how many documents are stored in your DMS, it is still a huge loss if they are lost or stolen in a data breach. Security should be a high priority when searching for a DMS. Vendors that offer strong security features for their products are worth considering. Make sure to speak with vendors about how often security features are updated and when you’ll know about upcoming updates. [Read related: What Is a Document Repository?]
Additionally, consider the access control options available with each vendor. To avoid unwanted access, choose a DMS that allows admins to set permissions, such as read-only, open access or limited access. Admins can manage controls through each employee’s profile.
Verify support options.
With any technology, there is always the chance of user error, updates that mess with operations or users who need assistance. Tech and product support are essential to consider before choosing a DMS vendor. Look for a vendor that offers multiple channels of support, such as phone, online messaging and email.
Additionally, consider the hours of support offered and whether or not that fits the schedule of your daily operations. You wouldn’t want to go with a vendor whose support hours fall before or after your hours of operation if there’s an issue. Find out how long it will take to answer a support request and if there are any additional fees.
What to look for in a DMS
Before choosing a DMS for your business, you should assess your document management needs. Not every document management program will fit your business, so identifying which features you need will help you narrow down your options.
Scalability and advanced features.
In addition to your current needs, be sure to list which advanced features you will want to implement later as your business expands. It is essential to choose document management software that can grow with your business, or you will eventually have to switch your software.
Security and disaster recovery.
The No.1 feature to look for in a DMS is security. The last thing you want is to digitally file all your documents and then suffer a data breach. Look for software that places a high emphasis on protecting your information.
“Find a solution with a security plan that is established, yet flexible when needed,” said Jared Weitz, CEO and founder of United Capital Source. “If you are [in] a heavily regulated industry such as finance or medical, you need security as a top priority. This looks like having the option to extend access to certain employees or groups.”
Usability.
In addition to security, Jim Collins, principal at Datamation Imaging Services, listed ease of use and uptime as key DMS features. You should be able to easily access, manage and navigate your files as needed. Be realistic about the resources you can dedicate to manage your DMS. If you don’t have a lot of resources, Collins recommends researching web-based DMSs instead of using an in-house management solution.
Collaboration and integration.
Since multiple departments across your company will likely be using your DMS, digital marketer Erica Gilliand said the system you choose should have collaboration and integration capabilities. Look for features like real-time live editing, file-sharing tools, integrations with other plugins, and the ability to add or restrict user access to certain documents.
Version control.
Gilliand also listed version control as a key aspect of document management. You should always have the latest versions of a document on file — whether you are viewing or editing it.
“Having the ability to download documents in other formats and going back to older versions in ‘history’ is super important for small businesses, because oftentimes someone will delete something, and going back to revert to the old version can save time and headaches,” said Gilliand.
Weitz added that small business owners should be sure there are check-in and check-out files to track who last viewed or edited the content. This can reduce the potential of business errors.
“The last thing you want is an old copy of [an] engineering drawing to be shared with a supplier and built off of by mistake,” Weitz said.
Document management tips from business experts
Although many DMS features are necessary for businesses of any size or industry, experts recommend small businesses pay special attention to the following details:
Strong customer support and scalability.
As a small business, you probably don’t have a full IT team ready to troubleshoot and support your DMS. Find a DMS that has a comprehensive support team to accommodate your support needs.
Weitz said you will need software that can quickly upload all your information and support your expected growth.
“Manually typing in all the files that you currently have would be a nightmare, so it is best to find a solution that offers scanning capabilities or an easy way to update what you have now with what you are moving toward,” Weitz said. “Be sure that what you invest in today will support you as you reach your goals. I have seen many businesses invest in a small option only to outgrow it immediately.”
Security and recovery features.
Mistakes happen — your business needs to prepare for them. Since a poor reputation can destroy a small business, it is essential to find a secure DMS that has good security and disaster recovery features.
“A DMS can provide a cost-effective disaster recovery system for critical information and data so you can be back on your feet faster than your competition,” said Collins.
Ease of use.
“There are many misconceptions about DMS, and the main misconception is that they’re complicated. This is simply not true,” said Collins. “A good DMS is very simple and easy to use. It is a tool to help employees find important content or documents when needed. If you’re using a cloud system, it’s a great way for employees to access content from anywhere — whether they’re remote or traveling.”
Do your research to find the best DMS for your small business. Weitz recommends making a request for a proposal (RFP) for the top vendors you are considering.
“Once you have this information, schedule a demo with each one so that you can be very clear on how the software functions from a usability perspective,” he said. “Everything might sound great on paper, but the system may not be intuitive or easy to navigate.”
How much does a DMS cost?
The pricing for document management software depends on the type of hosting you need and how many people require access. Small businesses can choose between cloud-hosted and on-premise software. Each option has its advantages and disadvantages.
- Cloud-based: Cloud-based document management software is typically more flexible and charged by monthly subscription, which typically runs between $5 and $27+ per user per month. The best cloud-based plans include technical support and updates. Small businesses often benefit the most from cloud-hosted document management software.
- On-premise: On-premise document management solutions typically require an initial one-time fee, plus an annual subscription for technical support and software updates. These systems average about $1,000 per user, plus an annual subscription fee.
The benefits of a DMS for small businesses
DMSs are beneficial for small businesses in many ways:
- Streamlines operations: Having a single storage space for documents makes it easier to keep things organized and share files with coworkers. By simplifying workflows, employees can focus their time on higher-priority projects.
- Reduces errors: Mistakes can occur when a document’s version history and previous edits haven’t been properly cited. A DMS provides accurate data and timestamps for all of the changes made to your stored documents.
- Improves security and disaster recovery backup: Storing vital documents in a cloud provides peace of mind in the event of a natural disaster, data loss, cyberattack or other unforeseen circumstances. Doing so also adds additional security measures through designated restrictions and documented updates. According to Collins, better security and backup for disaster recovery are some of the primary benefits of a DMS.
- Reduces costs: The expenses of printing documents and storing them in filing cabinets adds up quickly. Keeping track of statements, reports, and other documents with a DMS will save on paper costs and printer expenses, boost productivity, and declutter office space.
- Makes it easier to scale: With the ability to store ongoing and incoming data, a good DMS can expand as your company grows. “Your business will grow in time, and having proper documentation established will make this growth more fluid,” said Weitz. Converting to a paperless office early on will simplify your process later on down the line.
Sean Peek contributed to this article. Source interviews were conducted for a previous version of this article.
