What is the best document management system for small business?

What is a document management system for small business?

Getting a document management system for your small business may not be a step you’ve considered.

You probably already conduct much of your business digitally. That could be emailing customers and suppliers. Many tradespeople do their quoting and invoicing electronically as well. Of course, most banking is digital.

A document management system is simply a way of pulling all your business records together in one place. A giant digital filing cabinet, where everything should be easy to find and use.

Checkatrade members can our free quoting and invoicing tool which is a great first step towards an electronic filing system.

Work more efficiently

Online filing can be much more than that. Generally, they’re great in helping you work more efficiently and keep your customers more satisfied.

Electronic or online filing systems for small business are a big step forward for many tradespeople.

Nowadays, most of the latest online systems are likely to be cloud-based document management systems for small business. Cloud computing simply means paying a subscription to a provider who looks after your documents remotely and securely ‘in the cloud’.

That’s how most electronic and online filing systems work. It’s not that expensive, so is attractive to small business.

Pros and cons of online v paper filing system

There is a lot to consider with any form of small business file management you use. Whether you prefer a more traditional method or something newer, you need to think about the pros and cons of each.

Pros

Electronic filing system for small business:

• Keep more accurate records
• Store records and information digitally
• Retrieve records quickly and easily
• Share documents with colleagues, customers and suppliers
• Cross-reference and index records automatically
• Generate reports, for examples, on sales and purchases
• Allow only authorised users to access your files
• Generate tax and VAT records automatically and submit them online to HMRC
• Keep track of expensive assets like vans and equipment more accurately

Paper filing system:

• Writing things down is easier
• You won’t forget to record information as soon as you need to
• You know where everything is – in your notebooks, forms and files
• You don’t need to be tech savvy
• Your customers and suppliers prefer paper document management

Cons

Electronic filing system for small business:

• You have to pay for the service
• You need a computer, laptop or smart device
• You need an internet connection
• You need to remember password and other security requirements
• You need to know how to use the document management system to get the most out of it
• You might need to train employees to use it
• You could misfile documents

Paper filing system:

• You could record information incorrectly, such as dates and prices
• You might accidentally duplicate records if you use different pads for quotes or invoices
• You need to store your records, probably in filing cabinets that take up space
• You might need to store old and archived records for a long time
• Your records might not be safe from theft or unauthorised access
• You could lose or accidentally destroy records
• Your accountant might prefer an online document management system and charge you more for handling paper records
• You’ll have to fill and and submit certain tax documents manually
• You might not keep records up to date often enough

It doesn’t have to be an either/or decision with a document management system for small business. Your first step could take you halfway there:

• Go fully online with a cloud-based filing system

OR

• Rely on a mix of paper-based records and gradually move them online

Benefits of small business file management

If you’re worried about making the move online, you needn’t be.

Small business file management can help you in many ways, so it’s worth the effort to switch from paper-based.

You can keep a better check on your cash flow. Other advantages of a document management system for small business include:

Frees you to earn more revenue

All those hours spent filing paperwork, retrieving and storing it can be put to better use.

What’s more, you’ll be able to concentrate on winning more work and providing customers with a better service.

Reduces your paperwork

Your business will be a lot greener with a document management system. Using fewer paper records will also save you money.

If you use other online document management systems, like tools for quoting jobs, then you can probably link them.

Convenient way to run your business

Grab easy-to-access documents instantly, so you have everything you need at your fingertips. You’ll be in better control of even the most complicated jobs that involve lots of paperwork.

Easy access

It’s easy to take your electronic filing system for small business with you on jobs. Just use your mobile phone or smart device to access your files. You can share them digitally or download and print them whenever you need.

Saves on storage costs

If your business generates lots of paper records that have to be kept, then storing them could be a problem. You don’t want to have to pay to use storage facilities because your office is no longer big enough to hold them all.

Less hassle

Use standardised templates so all the information you need in a document is easy to find and use.

Greater accuracy

Create a clear way to name and store files to avoid duplicate versions. That way, you’ll cut down on how many documents you generate. Small business file management can help with your bookkeeping.

Fewer errors or delays on jobs

By managing and storing documents better you’ll spot problems, issues and errors sooner. You can sort them out quicker to really keep on top of jobs.

Expands as your business grows

Choose a document management system that can expand with your business. Rather than having a bulging filing cabinet in your office, your filing system grows with our business.

Improves efficiency

Another great thing about a document management system is everyone who needs to can access it easily. You’ll work better when you share the latest versions of documents with colleagues and customers.

With everyone working from the latest documents, you should be more productive and profitable.

With an online filing system, digital signatures – or e-signatures – are available for customers to sign important documents. That can speed up your workflow on jobs.

Looks more professional

Being able to share important information easily and quickly with customers makes you look more professional. You’ll be confident that they have the latest version for things like quotes and invoices.

Your documents will also look more professional. It’s easy to tailor document templates with your business details and logo.

Store records securely

The great thing about an online document management system is you don’t have to worry about losing your records. Also, you can store them safely and securely.

Additionally, you can restrict access to documents by controlling who is an authorised user. Archiving records is easy – so you won’t have to get rid of them to make room for newer items.

Things to look out for

When considering a document management system for small business you need to weigh up the benefits against:

• Cost – choose a system and provider that suits your budget and is flexible as your business grows
• Time – check how long it might take you and any colleagues to get up and running on the system
• Complexity – choose a system that’s right for your business, not so big that you’ll never use half of its functions or so difficult to use that you can’t run it easily

Write a business plan for your document management system

Before you head down the document management system route, think of the bigger picture. How you organise your filing system has to fit with how you want to grow your business.

Our free business development plan template can get you started.

How to move to an online filing system

If you think you’re ready to migrate your filing to a document management system, these steps might help.

Review your current filing system

How much is still on paper and how much is already online? This will help you see what’s required to switch to an electronic filing system.

Identify paperwork you don’t need and can get rid of

There’s no point putting stuff online that your business doesn’t need.

Think about how you’ll use an electronic system

For example, creating, sharing, updating and downloading documents.

Plan ahead

Decide what kind of system your business will need as it grows in size and creates more documents.

Consider training

The more you know about your online filing system, the more you can get it to do for you.

Decide on your document management rules

This helps you avoid misfiling, duplicating or even losing documents.

Look at the costs

Weigh up the costs with all the savings you can make by working more efficiently. Thinking about how much time you’ll save by using one will help you see if it’s worth the investment.

Choosing the best document management system

You need to know what to look for to find a document management system for small business that’s best for you.

What to look for in a document management system

Whatever system you choose to use, whether digital or traditional, you’ll need to consider the following:

• Easy to set up
• Easy to use
• Easy to add, edit, store and delete records
• Easy to add users
• Easy to ‘sync’ your document management system with your computers, smart devices and mobile phones
• How big a system you need
• What types of online files it creates
• What support is available in case you need help
• Discounts and other benefits available to users

Some of the key document management systems for small business

• Microsoft SharePoint

Offers simple sharing and easy collaboration; helps you improve how you run your business

• Google Drive

Lots of storage capacity; uses Google AI (artificial intelligence) to help you find records quickly by recognising important content

• Monday

Allows as many people as you want to view (but not edit) documents; puts a priority on customer support; offers handy onscreen ‘dashboards’ to see your information and data

• DocuWare

Lots of features if you have a mobile workforce for secure information flow and to automate work processes

Key takeaways

• A document management system for small business saves time and hassle
• Choose a filing system for small business that suits how you work and can expand as your business grows
• A cloud-based electronic filing system for small business helps you work more efficiently and look more professional
• Before choosing the best filing system for your small business think about the cost, keeping it simple and if you and other users might need any training to get the most out of it
• There are plenty of online filing systems for small business available – most are available on a monthly subscription