Benefits of Document Management Technology
As opposed to storing files on a server, storing files using document management software can automatically categorize documents so they are easily located and accessible. Most of the programs can also search a document’s text, including PDF files, for specific phrases and words.
These programs also allow users to have multiple backups of electronic documents, helping to eliminate the risk of loss and destruction of any files. Users can also set restrictions on who may view certain files and monitor the time and date of any viewings.
Some financial planners hesitate at the idea of going completely paperless because they claim clients what hard copies of documents. However, the prevalence of secure USB drives, personal scanners, and mobile devices indicate that many clients are now going paperless themselves.
Additionally, many believe that the cost of document management systems seems a small price when compared to the time and resources wasted locating, filing, printing, faxing, and copying hard copies of files. Once a user adopts a document management program, almost all the programs allow the export of repository metadata information which allows a user to easily switch from using one file management program to another.
Few will argue that the new tools and devices of the digital age have opened up new ways of collaborating and doing business, and by overcoming common objections to document management systems, both planners and clients stand to benefit from the use of this innovative technology.
Bill Winterberg, Five Misconceptions About Document Management, Journal of Financial Planning, May 2011.
Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.