The ultimate guide to choosing a document management system

Business

In an era where digital transformation is no longer optional, understanding how intelligent document processing works—especially through the lens of AI and ML—is essential for businesses.

This guide unpacks the nuts and bolts of intelligent document processing (IDP) while helping you select the right tool for your organization. Use this guide as your north star when evaluating tools, and don’t forget to check out The Ultimate Guide to Choosing Document Management System for deeper insight.

What is a document management system?

A document management system (DMS) is software designed to store, manage, and track electronic documents. These systems serve as digital filing cabinets, streamlining workflows and enhancing accessibility, security, and compliance. Whether you’re dealing with invoices, contracts, or personnel files, document management system software can simplify operations significantly.

Types of document management systems

Depending on your organization’s size and needs, there are various document management systems to consider:

  1. Cloud-Based Document Management System: This system stores documents on the cloud, allowing users to access files from any device with an internet connection.
  2. Online Document Management System: Much like cloud-based options, an online document management system emphasizes real-time collaboration and accessibility.
  3. Enterprise Document Management System: Used by large organizations, this system offers scalable features like workflow automation, detailed permissions, and high-level security.
  4. Contract Document Management System: Designed specifically for legal, procurement, and sales departments, this helps manage the entire lifecycle of contracts.
  5. Legal Document Management System: Tailored for legal professionals, it organizes case files, legal templates, and confidential communications securely.

Essential features to look for

When choosing the best document management system, prioritize the following features:

  • Version Control: Maintains records of document changes and authorship.
  • Optical Character Recognition (OCR): Allows scanned documents to be searchable.
  • Access Control: Defines who can view, edit, or delete files.
  • Audit Trails: Tracks document activity for compliance.
  • Integration: Supports syncing with CRM, ERP, or project management tools.

To maximize these features, many organizations pair their DMS with professional scanning services, such as those offered by Pearl Scan, which help digitize paper records efficiently for seamless management.

Benefits of implementing a DMS system

A DMS system goes beyond simple storage. Here’s how it can transform your operations:

  • Improved Efficiency: Automates document routing and approvals.
  • Enhanced Security: Protects sensitive data through encryption, permissions, and device security.
  • Cost Savings: Reduces paper usage, printing costs, and manual labor.
  • Regulatory Compliance: Helps meet legal and industry-specific requirements.
  • Disaster Recovery: Ensures your documents are safe even during IT disruptions.

Key factors to consider when choosing a DMS

When selecting a digital document management system, think long-term:

  • Scalability: Can the system grow with your business?
  • User Experience: Is the interface intuitive and easy to learn?