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A guide to document management

Whether you’re a small business or a large enterprise, document management is a must to avoid important files and data from getting lost.
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Why document management systems matter

A document management system (DMS) helps you store, organize, track, and manage digital documents. It’s a cornerstone of business and affects everything from productivity to compliance.

Key takeaways

  • Document management is the process of storing, organizing, tracking, and managing both paper and digital documents.
  • A document management system (DMS) lets you find the latest version of a file, share documents securely, control who can view or edit, and maintain audit trails.
  • DMS solutions like Microsoft 365’s SharePoint and OneDrive can help workflows become more efficient, provide better security for sensitive docs, and improve regulatory compliance.

What’s document management?

Document management is the process of storing, organizing, tracking, and managing both paper and digital documents to avoid lost files, implement version control, and more.

Document management is a core part of enterprise content management (ECM) as companies scale up the amount of documents they create.

What’s a document management system (DMS)?

A document management system (DMS) is a centralized, searchable, and secure solution for organizing, tracking, and updating documents.

You can search by keyword, tag files with metadata, and control who sees what. Many DMS solutions also integrate with digital asset management (DAM) tools to organize images, videos, and other multimedia content.

For businesses, it helps operational efficiency and regulatory compliance by keeping documents secure and updated.

What are the key features of a document management system?

A document management system has these features:
 
  • Document capture: Upload files directly onto the DMS including scanned paper documents.
  • Storage and organization: Organize docs in a centralized repository using metadata tagging, indexing, and consistent naming.
  • Document retrieval: Search files by keyword, tag, author, or content.
  • Security and access control: Keep track of access, set permissions, and use encryption to protect data. 
  • Version control: Keep things updated with the latest changes and make sure everyone’s working on the same file.
  • Workflow automation: Set up rules to automatically send documents for review, approval, or archiving.
  • Collaboration: Let teams co-edit documents in real time, leave comments, and share feedback.
Microsoft 365 solutions

Secure and efficient DMS solutions at scale

Microsoft 365 gives you everything you need to handle the full document lifecycle. 

SharePoint

Makes it easy to share, manage, and find documents across your organization. You can set up team sites, organize files with metadata, and collaborate in real time.
Learn more

OneDrive

Access and collaborate on documents from anywhere. It’s great for individuals or small teams who need flexibility and secure sharing.
Learn more

 Microsoft 365 Archive

Store inactive content in a way that’s compliant and easy to manage while keeping historical data accessible.
Learn more

What are the benefits of using a document management system?

Tools like SharePoint and OneDrive streamline document management while keeping everything secure and compliant.

Higher efficiency
A DMS cuts down the time spent searching for files and chasing approvals. With Microsoft 365, teams can automate workflows, tag documents with metadata, and access everything from one place.

Enhanced collaboration
Teams can co-edit documents, leave comments, and track changes in real time—reducing errors and keeping projects on track.

Better security
Sensitive files stay protected with built-in security. Microsoft 365 includes sensitivity labels and conditional access.

Improved regulatory compliance
A DMS helps maintain audit logs, retention policies, and secure storage. Microsoft 365 supports content backup and governance to keep your data compliant and accessible.
Process

The document management process in 6 steps

How organizations handle documents from creation to disposal.

Document creation and capture

Documents are created digitally or captured from physical sources through scanning.

Organization and retrieval

Files are organized using metadata tags and consistent naming conventions. Search tools and filters make it easy to find what you need.

Storage and security

Documents are stored in a centralized repository, protected by encryption and access controls. Audit logs track who accessed or edited each file.

Access, distribution, and collaboration

Files are shared securely with authorized users. Teams can co-edit, comment, and track changes in real time.

Version control and approval

Changes are tracked automatically, so you always have access to the latest version. Documents can be routed for review and approval automatically.

Retention, archiving, and disposition

Documents are held for the required time based on legal or business policies. After that, they’re either archived for long-term access or deleted securely.

Bringing it together

A document management system keeps your documents updated and secure. And if you're already using Microsoft tools like SharePoint, OneDrive, or Teams, you’ve got everything you need to manage content at scale.
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Microsoft SharePoint

Safely collaborate and share documents across your business.
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Solution

Manage content with Microsoft 365

Create, manage, and secure content and data with AI-powered content management services across Microsoft 365.
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Solution

Scan and save with OneDrive

Skip the bulky scanner and turn your documents, receipts, whiteboards, and even ID cards into PDFs.
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Product

Get peace of mind with Microsoft 365 Backup

Go beyond backup—keep your business running with fast recovery.
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Blog

Read about document editors

Discover what a document editor is and find out how to choose the right editor for your specific needs.
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Frequently asked questions

  • An electronic document management system (DMS) is software that helps you store, organize, and manage digital files like Word docs, PDFs, and spreadsheets. It keeps everything in one place, makes documents easy to find, and adds features like version control, access permissions, and audit trails.
  • Microsoft 365. It includes tools like SharePoint and OneDrive that help organizations store, organize, share, and secure digital documents.
  • Document management focuses on organizing, storing, and accessing files efficiently across teams and systems. Document control ensures that only approved, up-to-date versions of documents are used by enforcing strict permissions and version tracking.  
  • Microsoft 365. It includes SharePoint and OneDrive, which help teams store, organize, and collaborate on documents securely.
  • Start by identifying your team’s needs—like secure storage, version control, or collaboration. Look for a solution that integrates with your existing tools, supports compliance requirements, and scales with your business. 

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