Best Practices for Document Management in Small Businesses

Every company produces paperwork as a necessary component of doing business and the quantity of forms, reports, documents, and spreadsheets can quickly increase with organizational expansion. Even small businesses produce a considerable amount of documentation that must be archived for internal use, client reference, or regulatory compliance. In the past, every workplace had filing cabinets lining the walls but all that has changed with technology. Document management solutions can help small businesses manage their records more efficiently, allowing them to find and retrieve paperwork quickly and easily.

However, it is crucial to follow document management best practices to harness the full potential of technology that can help small businesses make efficient use of resources even if resources and budgets are limited. Knowing how to create and maintain a digital archive correctly is essential to keeping your records safe, available, and flexible enough to meet the demands of your business.

1. Establishing ownership and accountability

Assigning ownership of the document management program makes a specific individual or team responsible for its success. This can help ensure that the program is properly implemented, and that someone is held accountable if the program is not executed correctly. Clear ownership ensures that there is a defined decision-making process and allows for timely decisions to be made and for issues to be resolved more quickly. Furthermore, assigning ownership of the document management solution can help ensure that the program is implemented consistently across the organization. This ensures that everyone is following the same policies and procedures, which can help reduce confusion and improve efficiency. The individual or team responsible for the program can monitor its effectiveness, identify areas for improvement, and implement changes to improve the program over time.

2. Get user feedback on documentation procedures

When users are involved in the development of document-related processes, they are more likely to buy into the new processes and use them effectively. This can help reduce resistance to change and promote a positive attitude towards the new processes. Additionally, users are the ones who use these processes on a daily basis and are therefore best placed to identify areas for improvement. Getting user input can help identify process inefficiencies and bottlenecks, which can then be addressed and improved upon. User input also helps to identify the specific needs of different departments or teams within an organization. This can help ensure that the document-related processes are tailored to the needs of the users, making them more effective and easier to use.

3. Prioritize security

Your document management system likely contains sensitive and confidential information, such as financial records, customer data, and proprietary information. Ensuring that your system is secure is essential to protecting this information from unauthorized access or theft. Depending on your industry, you may be subject to regulations that require you to protect sensitive information. Ensuring that your document management system is secure can help you comply with these regulations and avoid costly fines or legal issues. Cyberattacks and data breaches are becoming increasingly common and can have devastating consequences for businesses regardless of size. Ensuring that your document management system is secure can help protect you from these threats and avoid the negative consequences associated with a breach. It is important to implement appropriate security measures, such as access controls, encryption, and regular backups, to ensure that your system is secure.

4. Define consistent folder structures and file naming conventions

Consistent folder structures and naming conventions make it easier to organize and find documents within a document system. Users can quickly locate documents by following a consistent and logical structure, which saves time and improves productivity. It also helps standardize the way documents are named and organized. This promotes consistency and reduces the risk of errors or inconsistencies in naming and organization. Consistent folder structures and naming conventions facilitate collaboration between different teams or departments within an organization. When everyone follows the same structure and naming conventions, it is easier to share documents and work together on projects. A well-designed structure can accommodate an increasing volume of documents and users without becoming disorganized or difficult to navigate.

5. Implement document retention policies

Document retention policies are essential for any organization to ensure that they retain the necessary documents for legal, financial, and operational purposes while also disposing of documents that are no longer needed. Identify the types of documents your organization creates and uses. This could include financial records, contracts, personnel files, emails, and other correspondence. Determine the legal and regulatory requirements for document retention in your industry as certain types of documents may have specific retention requirements, such as tax records or healthcare records. Define retention periods for different types of documents. Consider factors such as the importance of the information, the likelihood of future need, and legal or regulatory requirements. Regularly review and update the policy to ensure that it remains current with changes in regulations or organizational needs.

Taking Action

KRIS Document Management System (DMS) is easily accessible to authorized users, allowing them to find and access the documents they need quickly and efficiently. The secure system has appropriate access controls and safeguards to protect sensitive information from unauthorized access or theft. If you haven’t already done so, now is the time to review your organization’s document management practices and implement a comprehensive document retention policy. By taking a proactive approach to managing your company’s records, you can reduce the risk of legal and regulatory compliance issues, improve operational efficiency, and ensure that your organization has access to valuable information assets when they are needed.