Document management for small business: Systems and software for organized operations

You can take your small business from clutter to clarity with an efficient document management system (DMS). Though it may feel overwhelming to organize your files, choosing the right DMS could save you time, add organized efficiency and help you deliver better customer service.

This guide will help you set up document management that delivers for your small business.

Jump ahead to learn more about:

• Document management system benefits for small businesses
• How to choose the right DMS for your small business
• 5 steps to add document management to your small business
• How NEXT helps small businesses stay organized

Document management system benefits for small businesses

Time is a big investment when you adopt a document management strategy, but better organization has advantages. Here’s what you can look forward to when you get your small business digitally organized:

• Easier indexing and sorting of documents
• More secure documents that are less likely to be lost or ruined
• Improved compliance and audit-ready documentation
• Scalability – your document storage system can grow with your business
• Better collaboration features across teams or offices
• Integration with other software tools, such as accounting software, payroll tools, etc.
• Access to your business documentation on the go
• Faster referencing for improved customer support

How to choose the right DMS for your small business

Many options exist for document management systems, but these are a few of the simplest for a small business:

1. Google Drive is a cloud-based document storage system (meaning you can access the files from any internet-enabled desktop, laptop or phone), which makes it especially helpful for collaboration. It works well for most small business needs, but its storage is limited. While secure, there are more secure systems available.
2. Dropbox is a file-sharing platform that allows users to access files without an account. This is perfect if you send documents to clients. But, like Google Drive, you may need to investigate a more robust system for industries with strict compliance and security guidelines.
3. Microsoft OneDrive syncs well with Microsoft computers, and its features are comparable to Google Drive. This could be a good choice if your office runs on MS-enabled PCs.

Look for the software features that will most benefit your small business

Invest in a document storage system that will grow with your business. Here are a few features to consider:

• Cloud vs. local access: Most small businesses can benefit from a cloud-based document storage system’s access from anywhere. Cloud-based systems are also more common and cheaper. However, a local document storage system gives you more control over document security. Really consider which would be a better fit for your business.
• Storage capacity: Pick the right amount of storage to fit your business. Google, Dropbox, and OneDrive all offer different tiers of storage space — some of which are free. Start small and pay to upgrade as your needs scale up.
• Number of users: Think about how many users will need to access your documents and files, and make sure your software licensing will allow for them all.
• E-signature capability: If your business needs to be able to send and sign contracts, make sure you choose a tool that includes e-signature capability. This can make your document management much more efficient.
• Cost: Look at immediate costs, and keep an eye on future costs if your storage or access needs scale.

5 steps to add document management to your small business

Ditch the wall of dusty filing cabinets in your office. These strategies can help you get your DMS up and running:

1. Delegate an owner of the process

Someone should take ownership of help, support and feedback before, during and after implementation. Their tasks could include:

• Creating a taxonomy and naming convention for all documents. Consistency in naming files and folders means everyone can easily find what they’re looking for.
• Creating processes and procedures and capturing how-to tasks with clear, accessible instructions.
• Training and educating all DMS users on creating and storing files and folders. If it applies to your industry, training users on security and document regulations, such as HIPPA privacy compliance in healthcare.

A leader can also evaluate the document management system in real time. They can coordinate team feedback to help decide what is and isn’t working, and help to refine systems as you use them.

2. Digitize your documents

If you’re starting with paper documents, sort them, estimate how many you have and commit to how many you can digitize each week to get them into your system.

Scanning software like the Adobe Scanner app (or similar) is very simple. Your phone camera is enough to help you quickly snap pictures of a document and convert it to a PDF. Tools like this are also great for ongoing maintenance.

Some industry documents may require more care, such as legal contracts or other regulated documentation. If more high-quality digitization is required, you can hire companies to scan large volumes of documentation more accurately. This higher-end technology uses optical character recognition (OCR), also known as text recognition, to index the document’s contents for better searchability.

3. Create an organized labeling and folder system

To keep your DMS organized, use folders, subfolders and consistent labeling.

First, decide what type of organization makes sense for your business. Should folders be based on clients, vendors, projects or business functions? It all depends on how your team will search for data.

From there, create subfolders. Again, how will your team look for information? By region, alphabetically, by business vertical? Folders should not have hundreds of documents that are difficult to sort through.

Stick with a naming convention that works for you. Give documents accurate and descriptive titles, and include dates to help determine document versions as well. Many DMS tools will allow you to get more descriptive and add meta descriptions to your documents, making them easier to search in the future.

4. Make your DMS more secure

To help lock down the security of your new document management system, follow these best practices:

• Organize your data files both on your local computers and in the cloud.
• Consolidate software to use the fewest amount of tools possible.
• Schedule consistent and regular backups.
• Have all members of your organization change their passwords regularly.
• Manage access to documents by removing old clients and employees as needed.
• Delete unnecessary documents regularly; include this as part of your end-of-the-year tasks for your small business.

5. Don’t forget to manage your email, too

Email is an extension of your DMS. Clean out your inbox regularly, and create a folder system to categorize emails. Have email policies in place for staff as well.

Many corporate email accounts have less space than their document management system. Move large files over to the DMS. Encourage employees to collaborate over a document rather than an email.

How NEXT helps small businesses stay organized

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