8 Powerful Benefits of a Document Management System

Last Updated: 

March 21, 2024

Every business generates documentation such as invoices, correspondence and employee data. Some businesses, such as those in the legal sector, produce particularly high volumes of paperwork that must be stored long-term.

Processes such as document retrieval are very time-consuming with employees spending up to 20% of their working day simply searching for documents. However, if a install a Document Management System (DMS) your business could become increasingly efficient. Let's look at eight benefits of it.

Key Takeaways on the Benefits of Document Management Systems:

  • Reliable Software Solution: A Document Management System (DMS) organises and stores documents electronically, making it easy to locate and manage documents, even those several years old. This enhances efficiency and productivity.
  • Convenient Storage: DMS reduces the need for physical storage space, as it allows for electronic storage and easy access to documents. This declutters office space and can lead to greater productivity.
  • Safe and Secure: Cloud storage within a DMS offers a secure way to store documents, protecting against loss due to disasters and unauthorised access. It includes features like two-step authentication and encryption for added security.
  • Streamlined Collaboration: A DMS facilitates efficient collaboration by allowing instant access and distribution of documents among team members, reducing delays and increasing productivity.
  • Reducing Paper and Expenditure: Implementing a DMS cuts down on paper usage and related costs, such as printers and ink, contributing to environmental sustainability and cost savings.
  • Document History Simplified: DMS tracks the history of documents, including all versions and amendments, simplifying the process of finding the most current or relevant document.
  • Efficient Administration and Compliance: A DMS aids in legal compliance by efficiently organising and retrieving necessary documents, such as those related to tax, employee welfare, and safety.
  • Increased Productivity and Profit: By streamlining document access and retrieval, a DMS improves workflow efficiency, leading to increased productivity and potentially greater profit.

These benefits highlight how a Document Management System can significantly improve a business's operational efficiency, security, collaboration, and compliance, while also reducing costs and environmental impact.

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1. Reliable Software Solution

A DMS uses electronic data discovery software to organise every aspect of documentation within your business. It duplicates paper files and electronically stores them. The system is a powerful tool that can successfully locate a specific document in seconds. Managing documents that could date back several years becomes very straightforward.

Amendments, codicils and removal of certain pieces of text can be implemented almost immediately. The system can quickly locate, retrieve and share particular documents that may be required for an unexpected conference call meeting. A DMS enables your business to achieve the highest level of efficiency and productivity.

2. Convenient Storage

Storing physical files takes up large volumes of office space. Cabinets, shelving and secure boxes must be installed to contain them. Compact business premises can quickly become overwhelmed by paper storage.

According to Harvard Business Review, an uncluttered, well-organised office space encourages greater productivity.

Use offline cloud storage for immediate access, and place physical documentation in an inexpensive, but secure, off-site warehouse. It can save your business money as your premises won't need to be extended to store such vast quantities of paper.

3. Safe and Secure

Storage of paper documentation brings particular risks for your business. It can result in the complete loss of files in the event of a flood or fire. There is also the problem of intruders stealing or destroying specific documents.

However, cloud storage keeps your documentation safe and always accessible. It's a reliable method of creating backups for all your paperwork and data.

A DMS has the increased advantage of online security. Systems usually include security features such as authorised key holders and two-step authentication. It ensures only authorised personnel can access sensitive documentation. Users can be added or barred from the system in seconds. Encryption prevents hackers or cyber criminals from infiltrating your stored documents.

4. Streamlined Collaboration

A Harvard Business Review discovered that up to 75% of departmental teams are dysfunctional, particularly with projects that require shared documentation. Delays are often caused by colleagues taking excessive amounts of time locating specific paper documents and then printing duplicates.

Teams can become streamlined with a DMS as documents can be almost instantly located and distributed. A DMS helps streamline businesses, encouraging project development and increasing productivity.

5. Reducing Paper and Expenditure

Installing a DMS immediately reduces your expenditure regarding paper consumption. Paper is an expensive commodity that impacts the environment. Wood pulp requires vast amounts of energy and water to be processed into paper.

Research indicates that up to 50% of the paper an average business uses every day is destined to be wasted. By using DMS software, online files can be shared between colleagues instead of photocopying duplicates, reducing the need for equipment such as printers and ink.

6. Document History Simplified

In some instances, a business may have multiple copies of a specific document that have been produced at different times. Each one may contain amended information. With physical documentation, many hours can be lost trying to locate the exact copy that's required.

One of the greatest difficulties is being unaware of exactly how many versions or amendments have been made.

When you install a DMS, it uses codes to identify and organize original documents and subsequent copies. You can convert Word to PDF online with such a tool and still be able to track any changes to stay on top of any security matters of your documents. With a DMS, one simplified search highlights a document's entire history. It clearly shows individual copies and details of any alterations.

7. Efficient Administration and Compliance

Whatever industry your business is in, there will be a set of legal requirements at the state and federal levels that it must adhere to. A DMS helps your business comply with issues such as tax, employee welfare and safety by efficiently locating appropriate documentation. When disputes arise with clients or customers regarding payments or incorrect order details, receipts and forms can be located quickly and easily. A DMS should help bring issues to a conclusion by finding accurate documentation without any unnecessary delays.

8. Increased Productivity and Profit

An uninterrupted workflow helps a business increase its efficiency. By using DMS software as part of your administrative structure, it provides instant, streamlined access to documentation. Through DMS technology in the workplace, fast, accurate document retrieval helps improve the way your business operates.

It provides convenient, centralised storage and access. It allows colleagues in different departments, or even separate locations, to collaborate successfully. They no longer have to waste time searching through duplicated or irrelevant documents. DMS software helps increase productivity and should lead to greater profit.


Document Management Systems are being introduced in all types of businesses. Even a small business owner can benefit from the increased efficiency of document organisation and retrieval. DMS software provides safe, secure storage of documents, reducing the need for excessive office space for storing paper. It also ensures only authorised personnel can access certain categories of documentation.

The way the system reduces the hours lost in document retrieval helps streamline your business. It's particularly effective when different departments are working on a joint project. Installing DMS software should increase the efficiency and productivity of your business through the organisation and storage of documents.

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