What is File Management?
The file management process involves naming, organizing, and storing files within a program or system that allows them to be easily located. File management is a common practice in most companies, although some still prefer to use physical files. Digitally organizing files is beneficial because most systems will manage them for you.
This makes it much easier to find and store documents. The digital file management system is helpful because it allows you to access your files from any location or device. This is particularly helpful for remote workers.
Most companies organize their documents in a hierarchy, using secondary folders or subfolders to manage further. You may have several subfolders within your main folder that house different types of documents. You might have a folder for tax information and subfolders that contain specific forms and taxes for a particular year.
What is a File Management System?
To organize, find, track, and manage documents, businesses employ file management systems, also known as file managers. Digital files include text documents, images, movies, animated GIFs, and contracts.
Like digital asset management (DAM) systems, files are arranged in subdirectories. The naming conventions are entirely under the users' hands, and they can choose how the files should be organized.
Online file management systems are more user-friendly and secure than physical or paper filing systems. File management systems are used to maintain (or manage) files. This is software used to collect data files on a computer.
File management systems are limited in their capabilities. They can only manage files or groups of files, such as office records and documents. The method may show report information such as owner, creation date, status, and other valuable features in an office setting.
File Management Systems Are Also Called File Managers
Every computer has a hierarchical system of files that consists of subdirectories. These directories store files, which usually follow a predetermined hierarchical structure determined by the program instructions.
Nevertheless, the individual user organizes other files, such as videos, pictures, and documents. The software that moves, collects, and manipulates these files ultimately makes up a file management system. File management systems are concerned with how files are organized, not just where they're stored.
The tracking feature of a file management system is essential to its creation and administration. Documents in various processing stages are constantly shared and exchanged. The interface is simple and displays all the files. The user can browse through, sort, and move files according to various criteria, such as the date created, last modified, or type/format of the file.
It may include features such as:
- Assigning queued document numbers for processing.
- Map the owner and processes to keep track of various processing stages.
- Report generation.
- Notes.
- Status.
- File operations include: create, modify, move, copy, delete.
- Basic metadata can be added or edited.
Windows Explorer is the standard file manager in Microsoft Windows. This role belongs instead to a Mac tool named Finder. These file management systems are basic, but they usually suffice for most users.
Some businesses may want to use more sophisticated tools, which can sort files according to content or understand differences in formats. Additional functionalities may be available with more sophisticated file management software. For instance, they can assist with document organization. Files are categorized or assigned labels based on their attributes to build an indexable database. File management systems should not be mistaken for a system that manages data files and all other types of information in the operating system.
What Is The Importance Of File Management?
Many reasons exist why it is essential to have a file management system in place within a business, such as:
Better Organization
No matter how big or small a business is, it has a lot of data to keep, such as employee, product and inventory information, financial, etc. The management of files can be used to store, retrieve and exchange information in an organization. A company, for example, can keep many files together in one folder. This reduces clutter on a digital storage system.
Centralized Document Location
The retrieval of documents can be simplified by centralizing all documents. An employee does not have to search through hundreds of papers but can use a folder's name to find the document they are looking for. It is easier to organize documents this way than storing them in different locations such as on computers, flash drives, or email threads.
Efficiency Increases
The efficiency and time management of an organization largely determines productivity. The time it takes employees to locate documents is reduced by file management. File management also helps reduce employees' time recreating documents if they can't find an original.
Although retyping documents may take only a few moments in some instances, this time wasted can be problematic when repeated several times during a working day. The management of files allows employees to remain productive by avoiding repetitive tasks.
Communication Enhanced
Many file management software programs offer helpful communication tools, such as chat rooms, tag systems, and commenting on documents. It is crucial because it allows employees to ask each other questions or make comments about a particular document. These tools allow employees to edit documents together and understand the reasoning behind a change made by a team member.
Reducing Filing Errors
The management of files can help reduce filing mistakes in your organization. To avoid losing documents, a physical filing system must be used by a business. Digitally misplacing files is also possible, particularly if employees incorrectly name or organize their files by providing clarity and direction. An efficient file management system helps lessen mistakes made when looking for papers.
Access Control
All employees must have access to the documents they need to complete their duties. Information access helps businesses control who has the right to see confidential information. Some digital file management software has controls or locks that only allow access to certain employees. They can request their manager to give them access to the document they need.
Document Management: What Are the Benefits?
Using a document management tool can provide many advantages to your business. Knowing these benefits is essential to choosing the best system. Some of the notable file management system benefits include:
Less Storage Space
The cost of keeping paper records can pile up quickly. Boxes, filing cabinets, and other storage containers must be purchased, and space must be made for them. One study found that physical document storage takes up roughly 15% of workplace space. The average price per square foot for office space in the US is $285. A costly budget for document storage, to be sure. Using a document management system, you can save all necessary hardcopies in a more affordable setting, like a warehouse.
Offers Document Recovery and Backup
Storing physical documents is not only expensive but also risky. Fire, floods, earthquakes, and other disasters can destroy valuable data stored for years. This could have a devastating effect on your company.
40-60% of small businesses will never open their doors again after a catastrophe. It's unfortunate but not surprising that retrieving important files when disaster strikes is almost impossible. You can avoid the problem by storing documents electronically in an off-site document management system.
Improved Workflow
A recent survey found that 49 percent of respondents had difficulty finding documents. Forty-three percent reported having problems sharing documents, and 33 percent experienced issues with document versions. This is a tremendous amount of waste.
Document management systems can streamline workflows, saving your team time and money. The system is a central repository that's easy to use. Employees can quickly find the documents they need, share them easily, and tell at a glance when the document was created. This simplifies their work and allows them to spend more time on essential tasks.
Better Version Control and Organization
It can be challenging to tell if the version you are looking at has been updated, even if it's digital. According to research, 33 percent struggle with versioning. This can cause confusion and disorganization.
Good document management software can prevent these headaches by tracking changes and providing an audit trail. You can then see the entire history of changes and have the most recent version at your fingertips.
Easy Regulatory Compliance
It isn't easy to comply with the different requirements of every industry. One recent study found that up to 56 percent of healthcare professionals may not adhere to the right of access. Non-compliance can lead to legal problems and hefty penalties but also damages your reputation.
Document management systems can help you comply with federal and state regulations like HIPAA and tax laws. It will be easy to store and organize files according to rules.
The Document Accessibility Grant
The biggest problem with paper documents is that they are only in one location at a time. Making copies can be difficult and not always secure. You can invest in an efficient system for managing these documents so that everyone can access the document they need without waiting on another person to complete it.
These forms can be accessed from various devices, including desktops, laptops, and mobile phones. Document management systems ensure that all users can access the documents they need.
Provides Better Security
It's important to note that having a lot of access doesn't mean it is always good. Forty-one percent of businesses have over 1,000 files containing sensitive data (credit card numbers and health records). Unprotected files are available to all employees. Security issues are a significant problem as they can have severe implications and put your business out of commission. Document management systems are invaluable in resolving these problems. Access can be restricted as needed, and you can often see who has modified or viewed a document.
Savings On Time and Money
Paper files are time-consuming to manage and costly. Document management systems can help employees save money and time by allowing them to quickly search for documents using words, phrases, and full texts. All documents can be accessed via the cloud. This allows your staff to achieve their goals at a fraction of the time and cost.
Integrates with Vital Legacy Systems
So many apps and software programs are available today that you cannot count them all. On average, businesses use around 130 apps and tools. Many of these tools, especially those critical to the company, are expensive and hard to replace.
An intelligent document management system may smoothly connect with existing systems and prevent disturbance. Documents may be easily accessed and sent by any department, including Marketing, Logistics, and Accounts Payable. They will be able to automate many of their tasks.
It Makes Document Retrieval Easy
According to a survey, workers spend 19% of their time searching for information, whether in digital form or not. Document management systems simplify retrieval by allowing employees to find what they are looking for from anywhere using a search. Depending on which method you select, you can also tag and add meta-data to documents to help with retrieval.
Collaboration Increases
A 2023 study found that 75 percent of cross-functional groups are dysfunctional. The problem may stem from a lack of collaboration. A document management system allows employees in different departments to collaborate and share documents with little effort. A colleague in accounting can receive an invoice via email from a marketing employee. Accounting employees can pay and mark invoices as paid so everyone knows their status.
File Management: the Essentials
To increase the organization of a business, file management is a must. But employees need to be aware of what makes up an efficient system. Effective file management can include the following components:
Consistency
It's crucial to keep your document locations consistent when you create or organize your file management system. It is essential to create a uniform design and adhere to it when creating or managing your file management program. If you name a file "finances" for the company finances but then create another folder with the label "budget," this could cause confusion among employees.
The Number Of Folders
Understanding the number of folders your business and you require is an essential part of managing files. Your employees may have to go through many files if you don't have enough folders. Your employees may have to search multiple folders if you have too many. It's, therefore, important that your file-management system has enough folders for all your documents and subfolders marked to guide employees trying to locate a particular file.
File And Folder Names That Are Accurate
Accurate file names and folders are essential to effective file management. Suppose your company plans to release the first press release document this year. In that case, you may want to name it "Press Release #1 2021" under the folder "Press releases." Labeling your documents clearly can help your workers be more productive and efficient.
File Management Systems in 2023: 8 Trends to Watch
Cloud Computing Is All The Rage
Cloud computing was gaining popularity, and people were reluctant to jump on board. How did the technology work? The cloud has been around for years. Cloud computing revolutionized software, and it has had an impact on the document management system. Cloud computing ensures documents can be accessed anywhere, anytime. Cloud computing allows you to access files securely without needing to be in front of a computer or network. All you need is an internet connection.
Scalability is another benefit of web-based document storage, which makes it an ideal solution for all businesses. Cloud computing is the most popular document management system because it provides easy access at a reduced cost.
Social Integration Is Essential
The social media revolution has changed how we communicate, shop, get news, and much more. Facebook, Instagram, and Twitter are popular platforms that have replaced email and telephone as the primary means of communication.
Social is no longer just about catching up on friends and family. It's now a part of the business world. Integrating social technology into the intranet and document management systems has been successful. You can directly interact with the content - like, comment, tag, and search easily for files. It is a simple and enjoyable way to store and organize files.
It Is Essential To Develop Mobile-Friendly Applications
You check your phone or tablet a lot throughout the day. These tools have simplified the working week. Today's professionals are always on the move and need access to their important documents and files. Mobile apps for intranets are usually used to make document management software accessible. However, accessibility alone is not enough. The experience also needs to be friendly. Mobile devices are becoming more popular, and so is the need for mobile-friendly software development.
The Future Of Customer Portals Is Now
Your customers and employees are equally crucial to the success of your company. Your bottom line is determined by customer happiness. Your business's technology can assist you in connecting with modern customers in the ways they prefer.
Project management is an excellent example of how document management software can be used. Customer portals allow project managers to share documentation with clients. A company intranet, which contains many knowledge management tools and a document-management system, can be used to create customer portals.
Social intranet software, unlike email, allows customers to log in, download documents, and join the conversation. The customer can upload documents, ask questions or comments, and download a copy. Usage of intranet software strengthens client relationships, improves transparency.
The Collaboration Is Growing
Some professionals claim to prefer working alone because they are more productive. Collaboration can benefit projects in general, and document management is no exception. Email is the most common way to collaborate on documents. Email collaboration is cumbersome, confusing, and complex, particularly when trying to keep track of changes or refer back to older versions.
These problems are eliminated when you collaborate in one social space. These software companies know how essential collaboration tools are. They have incorporated them into their document management and social intranet products.
The Picture Is Changing. Workflow Management And Project Planning Are Now Part Of It
There are several sorts of project management software. It has been used effectively by businesses in many other industries for years. A disadvantage of traditional project management is that they are often standalone systems. Users must log in to multiple software platforms once a project's status has changed. This includes document management. What if they could coexist in one space? They can do this with social intranet software.
Project managers can optimize their processes by combining scheduling, workflows, communication, and document management in one location. On this idea, social intranet software is based. Consider a different solution if your current document management system does not provide project management.
The Ability To Scale Is Essential
Can your document management system keep up with the growth of your company? Software platforms' ability to scale is what we call scalability. Scalability is a crucial feature of modern intranet software. It allows business owners to transition from one size organization to another easily.
The Cost Of Services Is Decreasing
Some reputable companies offer their clients more affordable software and services. Although software is a commodity, you do get what you paid for. Many "one-size-fits-all" solutions aren't worth the low prices.
Until recently, cutting-edge software for document management was so costly that some organizations avoided it. Vendors today know that their software must be accessible to all to gain widespread adoption. The cloud-based technology and technological advancements have allowed companies to buy benchmark intranet and document management software without breaking the bank.
Look to the Future
The file management system trends give us a glimpse of the future of document management. Businesses are moving away from outdated standalone apps in favor of user-friendly, integrated solutions.
Mobile devices, social technology, and cloud computing have all had a permanent impact on document management. This has made life easier for professionals across virtually every industry. Consider switching from an old document management software to Axero intranet software and keep up with the competition.
Conclusion
Inefficiently managing paper documents or digital files, even poorly organized, will cost you time and money. The best way to prevent these problems is by investing in a document management system that meets your needs. Finding that solution, however, is another matter.
Arion ERP solutions, which use the best-in-class optical character recognition technology (OCR), allow you to convert paper invoices into digital versions that are intuitive and easy to use. It will help you save money and time by creating a more efficient workflow, reducing errors in data entry, and much more. Please speak to our experts today and find out more!
