Best Document Management Software and Systems of 2024

Creating, editing, archiving and retrieving documents securely and reliably is essential for any modern business. However, it can be difficult to keep all the documents your team creates organized and to ensure everyone who needs access to them has it. This problem is further compounded as businesses grapple with potentially upwards of terabytes of data. Document management software allows teams to collaborate with varying levels of access and permission based on their role within the company. The best document control software provides an auditable record of changes over time, as well, including versioning control that enables permitted users to revert to a previous version of a document at any time.

Document management software empowers organizations by making it easy to securely track and manage large numbers of files and organizational data. In the image above, a user reviews the audit trail of all actions taken within a specific folder. (Source: Revver)

Document management software is an important tool for any business that can help save time, boost security, ensure regulatory compliance and improve team collaboration. To help you find the best document management software for your business, we assessed various document management services on the market. Whether you’re in need of a simple digital filing cabinet or you need more advanced features like collaboration tools and version control, there’s a document management software out there for you. See our list of the best document management systems for small businesses.

Document management software can vary widely in pricing and cost structure. The first and perhaps most important factor in the cost of your document management system is whether you select a cloud-based or on-premises version.

Cloud-based document management software takes the infrastructure maintenance and burden of security off your business and places it with a third-party company. While this reduces the expense and challenge of managing it in-house, you’ll just have to trust that the company is handling your data properly. Cloud-based software is typically paid for on a subscription basis. For most document management software, this could range from $15 to $200 per month per user, depending on the complexity of the solution you choose.

On-premises versions of document management software require your own servers and, generally, a dedicated information technology staff for maintenance. Your business is wholly responsible for the security of your data, but this also means you have full control over your own data. With on-premises solutions, you generally have to purchase a license for each user. Each license can cost $1,000 or more, but it is a one-time fee. However, on-premises solutions typically charge an additional fee for technical support and software updates after the first year, which is usually about 20 percent of the initial licensing cost.

For small businesses looking for software that is easy to manage and not a large overhead expense, we recommend a cloud-based solution. However, make sure your provider adheres to the best cybersecurity practices to protect your data.

The actual price for document management software varies by company. Systems with more complex features tend to cost more while costs for basic document management software without extra features (such as task management tools and workflow automation functions) can be pretty low. Also, the more users you add to a cloud-based system, the higher the monthly subscription price will be.

While all document management systems digitize and organize documents, making them easy to retrieve and revise for users with permission, many other features might be built into your document management software. Here’s a look at some of the tools and aspects you might want to consider when choosing a document management system.

Usability

One of the most important elements of any software is usability. It could offer all the features in the world, but they won’t do you any good if the system isn’t user-friendly. Many document management systems offer free trials that allow you to test them before buying. If possible, allow your team to try out the software during the free trial period and offer their feedback on what they like and dislike about it. Since everyone has to use the system, be sure all stakeholders get the opportunity to test it out and provide insight about their experience before buying.

Document Sharing and Collaboration

While the primary function of a document management system is to digitize and organize files, most modern software also allows users to share files and collaborate on editing them. Some document management software allows users to edit a document simultaneously while others rely on a check-in/checkout feature that guarantees only one user can work on a document at a time. Others offer both options. Determine which is best for your team’s workflow and the types of documents you collaborate on together.

Document management software should make it easy to upload, download, and export data. Here, a DocuWare user configures and exports data to their desired location. (Source: DocuWare)

Version Control

Version control, sometimes referred to as “versioning,” is a critical feature of document management software that lets you keep track of changes to a document. The best document management software even maintains an archive of old versions, letting you see how documents have changed over time and revert to an old version if needed. This is especially important when collaborating to edit documents as human error could result in important information being altered or deleted. With version control, you can revert to an old version of the document and recover any lost information easily.

Version control helps organizations track changes to a document, as well as when the change was made and by whom. In this example, a series of changes can be seen to a test document in M-Files. (Source: M-Files)

Image Scanning and OCR

Image scanning and OCR are useful features for businesses that have a lot of paper records they would like to digitize. Scanning is the first step in turning a paper record into a digital file that can be imported into the software. OCR is a more advanced feature, but it’s a necessity for streamlining large digitization projects. OCR reads the text of an image and makes the content of the image searchable. The best document management systems use OCR to fill out metadata automatically and make it even easier to search for the document later.

Electronic Signatures

Document management software is often home to files that require a manager’s signature, such as purchase orders (POs). Many document management systems integrate with an e-signature tool, such as DocuSign, to allow electronic signatures. You can often send a document to a recipient with a request for their signature through the software. This can improve efficiency when it comes to getting clients to sign important documents or when onboarding new employees to the company, helping you to sign and store files in one central location.

Workflow Automation

Workflow automation features move tasks along automatically. Take a PO workflow as an example: You could set up workflow automation so that once a PO is generated, it goes to the appropriate manager automatically for their signature. The manager will receive a notification, and when the task is complete, the next relevant team member, such as someone in the accounting department or the manager’s supervisor, will be notified. If more action is necessary, you might be able to build that into the automated workflow as well. The best document management systems allow you to customize workflows to suit the way your teams work together.

Templates and automation are key features of a customizable and scalable system. In this example, a user uses FileHold to configure templates for auto-filing certain types of documents, as well as automating push email notifications for certain actions within the system. (Source: FileHold)

User Permissions

An essential element of document management software is the ability for administrators to set individual user permissions. Permissions allow certain users to view or edit files while others can be prevented from even seeing those documents in the system. Not only is this useful for efficiency purposes, but it is also an important security measure. The best document management software allows administrators to set permissions by specific groups, as well as to change permissions on the fly if you need to make an exception while keeping the default permissions settings the same.

Mobile Functionality

Many document management systems have a dedicated mobile app. Others rely on web browsers or online portals. Make sure the mobile version of any document management software you are considering is truly mobile-friendly. Even if you personally don’t use it on mobile devices, it is likely other members of your team will.

Not every document management system checks all these boxes while others offer all of them and more. When choosing your document management software, consider which tools and features would be most useful to your business. It is important to strike a balance between comprehensiveness and usability. Some systems can do it all but are a challenge to navigate (not to mention more expensive than simpler software).

Data Security

Data security is a vital part of any document management system. As an increasing number of businesses go digital, more customers are entrusting sensitive personal information to the companies they do business with. Your organization is responsible for ensuring sensitive information is safe and protected from a data breach.

1. Conduct market research

Researching the document management market will help you understand the most common and important features of document management software. Understand the most basic document management software elements like centralized document storage, built-in collaboration and task management, mobile functionality and data security. Identify market leaders and vet your options before selecting the right software for your organization.

2. Assess your needs

Understand your unique document management needs as a business. For instance, maybe you’re seeking a digital archive that can be updated periodically, or perhaps you’d prefer software that enables the daily creation and editing of new documents. Weigh the benefits of a locally hosted, on-premises solution in relation to a cloud-based solution managed by your vendor partner or a third party. Get specific with what you require in a system before searching.

A good document management system is also easy to implement and scale. The complexity of the software should be based on your team’s technical know-how, allowing them to store and locate documents easily as needed. Your team should be able to share documents and collaborate within the platform, even when they are using mobile devices.

Although every document management system should have security protocols, access controls and file versioning, these features are especially important for those operating within heavily regulated industries. Other features that lend to a document management system’s usability are metadata and tagging options, keyword searching, document editing history and restoration, automatic document retention and deletion, image scanning, optical character recognition and customizable workflows. The best software can also integrate with your other business platforms.

3. Vet your options and read customer reviews

Once you understand what you need from document management software, ask the following questions to software providers:

• What operating systems support this software?
• Is document imaging and digitization included?
• Are there any collaboration tools, workflow automation or project management tools?
• How many file types does the software support?
• Is there a versioning feature for tracking changes to documents?
• How many users can access a document at once?
• What third-party software does the system integrate with?
• What level of technical support can I expect to receive?

Additionally, read through customer reviews to get a more grounded understanding of each service’s pros and cons. This is where you’ll get the most authentic and holistic view of a particular software and its offerings.

4. Put everything in writing

Once you choose document management software and are ready to sign a contract, closely read any legal documents and ensure everything you’ve discussed is in writing, including which features you are getting for your money. Additionally, ensure there is a fair exit strategy included in your contract that does not threaten you with outrageous fees.

5. Reassess performance

Once you start using your document management software, regularly test your performance with it to optimize your workflow. Do this by inputting and storing documents, granting access to your team to make edits or updates to documents and testing document security to ensure your data is safe. Should you run into any issues, address your concerns with the software provider. If they are unable or unwilling to resolve these issues, consider terminating your contract.

A document management system can improve efficiency for you and your staff by organizing all of your files and making them easy for anyone in the organization to find. A good document management software is more than just a file cabinet, but an interactive depository for all the files your organization needs.

Time savings

If you are currently using a manual system, you are costing yourself hours that could otherwise be spent on other, more pressing business matters. A document management system automates many aspects of document management, taking that responsibility off your hands.

Easy scaling

A document management system is more flexible than a traditional paper filing system. It accommodates your business’s growth easily, and your indexing system can be adjusted with a few clicks. For growing businesses, most document management software providers offer multiple pricing tiers, so you can increase your storage capacity as the size of your organization increases.

Enhanced document security

Ensuring that your information is secure is critical, from customer payment information to company trade secrets. Document management systems come with built-in security and access controls so you determine who can access certain documents. In addition, you can see all activity on any given document. In the event of a disaster, like a fire or flood, your files are stored safely in the cloud, away from physical harm.

Quick and easy document retrieval

Searching for the right document can be difficult and time-consuming; it can even cost you money. With the right indexing system, finding a document can take mere seconds, and employees can access the documents they need remotely. The best systems apply appropriate metadata and tagging automatically to make finding documents even easier, without much need to classify them on the front end.

Better regulatory compliance

Compliance requirements for many business documents can be complex and demanding, but a document management system can help you avoid fines, revoked licenses or even criminal liability by automating key documents within the requirements. For example, HIPAA and the Sarbanes-Oxley anti-fraud law have strict security and policy regulations regarding documents and records. The best document management systems automatically follow those guidelines, so you can rest easy knowing your business is compliant and has an auditable trail of required documents.

Improved collaboration

A document management system makes sharing information and collaboration easy, allowing documents from different sources to be accessed from multiple locations. Users can also share documents, monitor workflows, grant or deny access to certain documents.

In recent years, document management software has been increasingly moving into the cloud, a model that’s more affordable and easier to maintain than the on-premises model. We expect this trend to continue, particularly as more teams adopt remote and hybrid work as a permanent arrangement.

The document management software business industry is expected to grow steadily in 2024 and beyond. Market research from Fortune Business Insights suggests the industry will reach a year-over-year growth of 17.2 percent by 2030, increasing from $6.23 billion in 2023 to $18.97 billion in 2030.

This increase in value can be attributed in part to the growth of AI-powered solutions. Document management platforms are leveraging AI to automate workflows, improve search capabilities, analyze data, bolster security and ensure legal compliance. As technology continues to evolve, we expect further adoption and capabilities of AI in document management.

At Business News Daily, our team of small business technology experts have been researching and testing document management software for years, comparing some of the leading solutions across more than 30 key metrics. We considered 72 document management systems and closely reviewed and tested 10 of them before selecting our five best picks above.

Below are the factors we considered when determining our best picks. Each is weighted according to how much the criteria typically influences business owners’ buying decisions.

• Pricing (30%): We considered not just the base cost of the software but also the number of pricing plans, per user fees, contract requirements and add-on costs to determine which provide the most value per dollar.
  
• Features (25%): We particularly evaluated the dashboard and tested tools for creating, sharing, and editing documents. We also examined user permissions settings, versioning controls, storage capacity and workflow automation capabilities. Finally, we considered third-party integrations with other popular business software.
  
• Usability (20%): We paid close attention to the ease with which the software could be set up, how intuitive we found the navigation and use of key features, and the training and informational resources available to new users. We also considered whether the software offered a responsive mobile app or mobile browser.
• Customer Support (15%): We examined the ease with which customers can contact the team in need of help. We reviewed customer feedback to determine how well the customer service team meets the needs of existing customers.
• Expert Insight (10%): Our product reviews are conducted by software and industry experts who are deeply familiar with document management solutions. Given their institutional knowledge of different platforms and firsthand experiences using these programs, we take their judgment into account when determining our best picks.

In addition to scoring each document management software we reviewed based on this criteria, we also determined the best use case scenarios for each. No two businesses are exactly alike, so we put ourselves in the shoes of different types of small business owners and identify the best document management software for a variety of needs.

To learn more about how we review and test products and services for small businesses, read about our editorial process here. 

Jeremy Bender contributed to this article.