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With a Paper based document management system you are in a place where you manage your document process in your records life cycle in paper form. If you have to file your company’s annual returns, you have to pile up your year’s transactions of paper receipts,invoices, local purchase orders and others for an audit to be done before refiling.
This would require one dedicated person to handle this process of sorting the documents in files and returning them to their rightful place.
In a paper based document management system all your documents are created in digital but converted into paper format for reuse, approval and storage.
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Sign upWhat is an electronic based document management system?
In an electronic based document management system all your documents are managed in a digital format using an electronic document management software. This assists in searching, sharing and organizing your information in a systematic manner easing work. This also minimizes diversion from productive work to manage documents if they are in paper format.
Electronic document management system improves collaboration. In the case of filing annual returns the auditor is enabled to access the accounting records by having a user licence with specification to his needs. He can access the required documents in real time. This is without the need of extra help in document search. Errors would also be minimized and losing documents eliminated completely.
The infographic below will help you understand in details the difference in the two document management systems
Without even thinking about it you spend hours or even days searching for paper documents in the paper based document management system. Meanwhile you would have an option of searching for a document by just a click which would save you on time and cost implications. This is what defines one of the differences between using a paper based document management system and an electronic based document management system.
With a paper based document management system, you have to create space for storing your paper documents in the form of filing cabinets and even having a whole room dedicated to storing these documents with an illusion that they are safe in a separate room. What if that room was used for other productive activities and have those documents in an electronic based document management system or even on cloud?
Don’t you think if you have an electronic document management system you would be able to manage your costs? The budget for buying cartridges, toners, paper, file and filing cabinets would be eliminated all together. Contracting a technician to maintain your printer or copier would also be eliminated. You would only budget for a cloud storage or an electronic document management system subscription which is much lower. This is different if you have a paper based document management system.
With a paper based document management system, how safe are your documents? Are they inaccessible to unauthorized personnel? How often have you realized that either you have misplaced a document when you really need it or lost it all together. It could even be lying on someone’s desk. This is different from an electronic document management system whereby only authorized personnel are able to access their required documents using a user licence.
With the paper based document management system which is managed completely by humans is prone to errors while with an electronic based document management system the process is flawless through automation and artificial intelligence.
Wasted resources in the form of repeated duplication of paper based document management systems is a frequent occurrence. This can incur a lot of costs with detriment to the company’s budget. Whereby with an electronic document management system no printing, no duplication minimal resource wastage
Conclusion
Apart from the above infographic there are many more factors that would favour an electronic document management system to a paper based document management systems which include time factor, document damage because of overuse, costly document mobility because you either have to deliver the document through courier for speedier delivery or the postal delivery. It is still less faster than just transmitting the document within the electronic system. With these factors being considered which document management system would you prefer?