In early ages Maintaining the file system needs physical involvement, which leaves heavy loads and stress to their staff. As in previous times, people used to keep records in files different shelves which are very complicated and time taking process more over the security of these files or document is always at risk, like the threat of being stolen paper are completely damaged not able to read things. And the most important thing when you need any document on the urgent basis, but from this file system, it takes the time to find that particular file which is ultimately affecting your work. Many companies or employee still uses this old system because they find difficult to use document management system because either they are not familiar with computer or them unable to understand the software features.
Document management system (DMS) is a file system that helps to store data in an easy and systematic format so that it easily recovered and security of the document is not compromised. It works like a helpline in between file and application so that it can be stored safely in the system. It helps to delete those bulk filing shelves which acquire office and storage space and which demand extra workforce to maintain that record which is time-consuming and loss of productivity of the work. DMS is an application which helps the user to work and save documents in the same platform and it allows all the users and groups to access the file at the same time if they want this one platform where all the user can share, store and edit the file as per their needs.
Benefits of Document Management in Accounting
Document management works like a helpline between the file system and application. There are some benefits of it in accounting as follows:
Easy to implement and manage: DMS is easy to implement this is just a software that you need to install and then you can use it to store data and the best part is if you get any paper document you can scan that and can save that in electronic form which can see later in the same system without any loss of data.
Increased productivity: This will help you to reduce time in searching files you just need to enter the filename in the search tab and in second file will be up on your screen. And then that you have saved in searching files from the previous method you can utilize that time in some other productive work.
Eliminates human error: You can’t avoid mistakes when dealing with huge amount of paper. More paper increases confusion and more confusion lead to loss of valuable document. Document management system Reduce the risk of human error such as duplicate document payment error and much more which can be a loss to the company.
Reduces costs: There are many reasons that reduce cost like cost, reduce storage space because the accounts department needs more space to store invoice or many valuable documents but by DMS this cost is saved. This helps to reduce the cost of paper as less paper is used less cost incurred. Helps to reduce the staff because maintaining the storage you need extra staff, but by DMS as you are storing in the application you don’t need extra staff for storage or maintenance.
Increases security through audit trails: With the help of document management system all the records, all properly arranged by date, time and related information which helps the auditor to easily find details. And this helps to know that business is following the proper guideline of their work.
Easily integrates with existing systems: This doesn’t require any external training this can be integrated with any system.
Eco-Friendly: Because it allows the user to transfer the file digitally which save paper and if the paper is saved you’re saving trees because around 35% of the trees is cut to make paper and if you are saving paper you are saving nature too.
