Automated Work Using a Document Management System

A document management system - short DMS - is used in companies to support internal processes. The electronic document management is based on a database. In this database, all documents can be organized and processed from the inbox to the filing system. If the documents are needed again at a later point in time - e.g. for a tax audit by the tax office - the administrator of the document management system can easily access them. By using DMS, a company is transformed into a paperless office. With the help of standardized processes, savings and optimization potentials can be achieved.

Automated Work Using a Document Management System

An appropriate document management software ensures the optimal use of DMS. This is user-friendly and supports the user in managing his documents.

Support in the Operational Organization

Legal foundations of the electronic document management system

Depending on the type of document - this can be an invoice, a bank statement, a balance sheet or any other document - the German legislator imposes various legal requirements on a document management system.

The specifications for legally compliant storage must also be met by an electronic DMS. The regulations of the German Commercial Code (HGB) and the German Fiscal Code (AO) must be implemented for the storage of accounting and balance sheet documents. Tax-relevant data must be archived also digitally properly. Subsequent changes to the document should be excluded.

A document management software supports the revision security. When data is stored electronically with a DMS system, each individual processing step is recorded on the document. If the document is stamped with the incoming mail stamp or an invoice is released for payment, these steps can be traced later in the system. In this way, any kind of manipulation is prevented. This plays a decisive role, especially for tax-relevant documents, since these may no longer be prevented after the documentation.

Original supporting documents must be kept for six or ten years depending on the type of document. If these documents have been recorded electronically, the originals may be destroyed. However, this does not apply, for example, to a balance sheet or a profit and loss account. A good document management system ensures that they are not destroyed before the retention period expires.

Reasons for DMS

Legal regulations must be observed in the management and storage of business documents. In practice, high demands are made on this, which is influenced by the respective corporate structure. The DMS software supports the user in organizing and provides more legal security through a legally compliant filing system.

It must be possible to trace operational processes seamlessly even at a later date. If a tax audit is imminent or an invoice from the previous year is to be retrieved from the archive at a later date, there is always the possibility that the document has been lost and cannot be retrieved.

A document management software prevents this scenario. The electronic recording and processing of documents ensures that all business documents for a year are managed without interruption. This also means that the documents can be found quickly.

Confidential documents must not be accessible to all persons. Business figures on turnover and costs should only be known to the company owner or the management. If a document with this information is filed in the wrong file or left open on the desk, it can quickly fall into the wrong hands. 

A document management software offers the user the possibility to protect confidential information from access by unauthorized persons. A document management system offers the possibility to install an authorization concept that also guarantees compliance with data protection.

Document lifecycle

The administration with a document management system is aligned with the life cycle of a document. The life of a document can be divided into the following four phases:

  • Document preparation
  • Release and publication of the document
  • Use of the document
  • Filing the document

The creation of an electronic document is done with the help of a scanner. The paper document is scanned and entered into the in-house document management system with the support of an internally defined keyword. The captured documents are accessible to every employee who has access to the documents.

During the release and publication phase, the documents can be edited in the document management system. This is done, for example, by stamping the document with an incoming mail stamp. The document is then used. For example, an invoice is sent to the customer. In a final step, the electronic document is stored in the in-house document management system in a legally compliant and read-only manner.

DMS in use

The DMS software supports internal company processes, e.g. in the following areas of application:

Example: Tax consultancy

If a tax consultancy receives a client's tax assessment from the tax office, the period for objection must be observed. For this case a DMS software provides optimal solutions. After the tax assessment has been recorded in the document management system, it is marked with an urgency note. The processor knows that the document must be processed by this date at the latest. At the same time, the document can also be monitored by his boss. If the employee has sent the objection to the tax office, the document is given a completion note. The boss is hereby informed that the matter is settled.

Example: Medical practice

A document management system can also support the work of the doctor and receptionists in a medical practice. Medical records and important patient information are recorded in the DMS software and can be accessed immediately if required.

The document management software makes the old filing systems - such as suspension file folders, card index boxes or resubmission folders - superfluous.

Advantages of a DMS Software

The following advantages are connected with the use of a document management system:

  • The DMS software enables central storage of the data.
  • The document management system ensures that important documents are ready to hand in the shortest possible time.
  • The document management system helps to reduce search times and keep e-mail boxes small.
  • Archive rooms can be saved by using the DMS software.
  • Version control provides users with more revision security.
  • The use of the document management system reduces paper costs.


A document management system brings the advantage to the user to transform his enterprise into a paperless office. The processing of a document is organized from the receipt of the document to the filing.

The use of a document management system is supported by a DMS software. The document management software ensures that the documents are properly filed in accordance with the legal storage regulations.

A document management system can meet the individual requirements of any office. It is used in a tax consultant's office as well as in a medical practice or in warehouse management.

Users benefit from legally compliant data storage and less strained internal processes.