File it away

Is your office is awash in papers and records that often need to be retrieved by your staff? If so, think about getting an electronic document management system instead of buying your next set of file cabinets.

Simply put, document management systems allow you to store and retrieve digital copies of your papers online. To do so, papers first need to be scanned into the system. This requires a regular scanner that is typically outfitted with an automatic document feeder. These files are then indexed, which means that a person adds the appropriate information to each file so that it can be called up in the future. When a person needs to retrieve a file, they just enter what they are looking for and the set of files that match will appear.

There are several advantages of virtual document management over relying on files stored in file cabinets. First, electronic files cannot mysteriously disappear or get misplaced the way paper files can. Firms can also save money because they no longer have to expand office space to accommodate ever-increasing onsite storage needs. More file cabinets no longer need to be purchased either.

Most importantly, using a document management system can be vastly more efficient. People no longer need to walk over to a centrally located file cabinet, open the file drawer, pull out the appropriate records and return to their desk. With a document management system, you turn to a computer, enter what you are looking for, and display the file that you want on your monitor. With such a system, all your files become true resources for you.

When evaluating systems, it is critical that you have a clear understanding of how it will be used at your office. This will help you quickly whittle down your options. In particular, think about how your staff would want to retrieve the scanned records. Document management systems vary greatly in their file retrieval options from allowing index-based searches only to supporting searches of all the text. Look for a system that mimics the way your staff currently retrieves files to ensure an easier transition from paper to computer.

System costs have become reasonable. A small office can pay a few thousand dollars to obtain a starter document management system. This would include a mid-level scanner ($300-$500), a computer system to store the files and application ($1200), and the necessary software ( $1000-$1200).

Prices increase when you buy multiple licenses to allow more people to access the system and as you invest in more robust hardware. Licenses typically cost a few hundred dollars per computer that you want to outfit with the capability to use the system. In addition, you may want a consultant to help implement your system. To avoid any budgetary surprises, learn if such help is required to set up your system.

It has been said that once a company learns about the virtues of a virtual document management system, it is impossible to go back to paper. Consider yourself warned.

Quick tips

Web-able. If remote and customer access is important to you, look for a document management system that can publish stored records to the Internet. Backup your files. Make sure to back up your storage system regularly to minimize the consequences of hard drive failure. Think it through. Invest the upfront time to come up with an organizational system that can work for the long-term.