How are you handling your document management software? Here are the biggest mistakes companies make with their document management software.

By Matt Peterson
President & CEO of eFileCabinet

At this point most businesses are aware that making the shift to paperless is necessary, but many are going about it all wrong. When not executed correctly, businesses are missing out on major productivity and money-saving benefits. More importantly, the mistakes businesses are making are opening them and their clients up to having personally identifiable information (PII) leaked or stolen.


Document Management Software Mistakes

The biggest mistakes most companies make when it comes to using document management software (DMS) are:

  • A Disorganized Transition: Business constraints and imperatives often drive the pursuit of paperless operations, but expecting to complete the move to a paperless office in an unrealistic time frame can really throw off administrative and operational processes. Successfully implementing a paperless office solution includes a planned, structured transition with realistic timelines.
  • Lack of OCR: One of the most common mistakes of going paperless is the digitization of documents into unreadable or unsearchable formats. A robust document management solution needs to include a scanner, or optional software, with Optical Character Recognition (OCR) capabilities to truly leverage the power of paperless operations. Without OCR, the contents of documents, tables, spreadsheets, and presentations cannot be 100% recognized as searchable content and, therefore, cannot be found or copied.
  • Non-Existent or Inadequate Data Backup: An organization’s data backup process is a vital component of its overall disaster recovery plan. While document management services do digitize and help an office manage paperwork more efficiently, these electronic documents also need to be backed up as part of a business continuity plan. A nonexistent or inadequate data backup plan could have an adverse fiscal and reputational impact on a company.
  • Restriction to a Desktop Computer: In a world that relies on the increased mobility and portability of data, the paperless office needs to extend beyond the boundaries of the office building. Another common mistake organizations make when they go paper-free is using a document management solution that does not offer secure, Cloud-based access or the ability to access documents through a mobile app. Nowadays, 256-bit encryption at rest and in transit is almost a minimum level of security.
  • Non-Compliant Storage and Sharing: Governance standards, international law, and global financial regulatory requirements under several acts (i.e. HIPAA, SEC, FINRA) require an organization to provide verifiable and timely access to digital records. The proper establishment of role-based security, audit trails, versioning control, and other means of controlling access to documents containing sensitive information is a necessary step for security purposes.


About the Author

Matt Peterson is the CEO of Lehi, Utah-based eFileCabinet, Inc. Founded in 2001, eFileCabinet, Inc., began as a cutting-edge tool to digitally store records in accounting firms. As it grew in popularity, eFileCabinet developed into a full-fledged electronic document management solution designed to help organizations capture, manage, and protect their data.

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