Paper-based workflows might have worked in the past, but they’re quickly becoming a liability for small businesses. Lost invoices, misplaced contracts, and cluttered filing cabinets don’t just waste time—they cost money.
An Electronic Document Management System (EDMS) changes the game by digitizing documents, making them searchable, secure, and accessible from anywhere. Whether you're drowning in paperwork or just looking for a smarter way to handle files, switching to an EDMS can streamline operations, cut costs, and boost productivity.
But here’s the big question: How do you actually go paperless?
This guide breaks it down step by step, so you can transition smoothly—without disrupting your business.
Choosing the Right EDMS for Your Needs
Not all Electronic Document Management Systems are built the same. The right choice depends on your business size, workflow, and budget. You don’t want to overpay for features you’ll never use, but you also don’t want to end up with a system that feels outdated in a year.
Here’s what to look for when picking the best EDMS for your small business:
1. Ease of Use Matters
If a system is complicated, your team won’t use it. Look for a platform with:
Simple, intuitive interface – No one wants to spend hours figuring out how to upload a file.
Quick search functionality – Find documents in seconds using keywords, tags, or metadata.
Drag-and-drop file uploads – The fewer steps, the better.
2. Security & Compliance Features
Protecting business data isn’t optional. Make sure the EDMS includes:
Encryption – Keeps sensitive information safe from hackers.
Role-Based Access Control – Restricts who can view or edit specific files.
Compliance Support – If you deal with legal, medical, or financial documents, check for features that help with HIPAA, GDPR, or industry regulations.
3. Cloud-Based vs. On-Premise: Which One Fits Your Business?
- Cloud-Based EDMS: Ideal for businesses that need remote access, automatic updates, and lower upfront costs. No need for expensive hardware or IT maintenance.
- On-Premise EDMS: Better for businesses handling sensitive data that require full control over security and compliance. However, setup and maintenance can be costly.
For most small businesses, cloud-based systems make the most sense. They’re flexible, scalable, and don’t require an in-house IT team.
4. Integration with Your Existing Tools
An EDMS should work with the apps you already use. Whether it’s QuickBooks, Google Workspace, Dropbox, or Microsoft 365, seamless integration saves time and prevents headaches.
5. Scalability for Future Growth
Your business will grow—your EDMS should, too. Pick a system that allows you to add more storage, users, and features as your needs evolve.
Final Tip: Test Before You Commit
Most EDMS providers offer free trials or demo versions. Try before you buy to make sure it fits your workflow. A bad choice can slow down your business, but the right one will keep things running smoothly for years.
Migrating Your Paper Files to Digital (Tools and Best Practices)
Going paperless isn’t just about buying an Electronic Document Management System (EDMS)—you need a strategy to digitize your existing files without causing chaos. A rushed transition can lead to lost documents, poor organization, and frustrated employees.
Follow these steps to convert paper records into a well-structured digital archive.
1. Prioritize What Needs to Be Digitized
Not every paper document needs to make the move. Digitizing everything wastes time. Focus on what you actually need. Start by sorting files into three categories:
Essential – Legal contracts, invoices, tax records, employee files. These must be digitized.
Occasionally Used – Reference materials, old client records. Scan and archive, but don’t clutter your active system.
Obsolete – Outdated paperwork with no legal or business value. Shred it and move on.
2. Choose the Right Scanning Tools
Your scanner determines the quality and speed of the process. Options include:
- Basic Office Scanners – Fine for small volumes but slow for bulk scanning.
- High-Speed Document Scanners – Ideal for businesses with stacks of paperwork. Look for automatic feeders and OCR (Optical Character Recognition) to convert scanned images into searchable text.
- Mobile Scanning Apps (CamScanner, Adobe Scan, Microsoft Lens) – Great for digitizing small amounts of paperwork on the go.
3. Organize Files with a Clear Naming System
A digital mess is just as bad as a physical one. Before you upload files, create a standardized naming and folder structure. A good structure makes future searches effortless.
Good Example: Invoices_2025_ClientName.pdf
Bad Example: Scan_001.pdf
Use consistent categories, such as:
- Client Files → ClientName_Contract_2025.pdf
- Financial Records → Taxes_2024_Quarter1.pdf
- Employee Documents → JohnDoe_PerformanceReview_2025.pdf
4. Backup Everything Before Disposing of Paper Copies
Before shredding anything, make sure your files are:
Uploaded to your EDMS and accessible
Backed up in at least two locations (cloud and external storage)
Verified for accuracy (no missing pages or errors)
Final Tip: Migrate in Phases, Not All at Once
Trying to digitize everything overnight can overwhelm your team and slow down operations. Instead, migrate in batches—starting with high-priority documents.
Once your core files are digitized, maintaining a paperless workflow becomes much easier.
Training Employees and Implementing New Workflows
A new Electronic Document Management System (EDMS) is only as good as the people using it. If your team doesn’t understand the system, they’ll resist the change—and before you know it, you’ll have employees printing files “just in case.” The key to a smooth transition is proper training and a clear workflow that makes digital processes faster and easier than old paper-based habits. Communicate the benefits of using EDMS for the business and also highlight the ease it brings to their workflows.
1. Get Employees On Board Early
People don’t like change when it feels forced. Instead of dropping a new system on your team without explanation, involve them in the process. Communicate the benefits clearly:
Less time wasted searching for documents
Faster approvals and collaboration
Remote access to important files
Increased security and fewer lost documents
When employees see how an EDMS makes their work easier, they’ll embrace it instead of fighting it.
2. Provide Hands-On Training
A one-time email with instructions won’t cut it. Your team needs practical training so they feel comfortable using the system. Here’s how to do it effectively:
- Live Demonstrations – Walk through common tasks like uploading, searching, and sharing documents.
- Small Group Training – Different departments have different needs, so tailor training sessions accordingly.
- Video Tutorials & Guides – Create short how-to videos that employees can reference when needed.
- Q&A Sessions – Address concerns and challenges early to prevent frustration later.
Make training interactive—let employees test the system with real files so they can get comfortable with it.
3. Define Clear Workflows
Switching to digital isn’t just about scanning documents—it’s about changing the way work gets done. Create workflows that make sense for your business, such as:
Invoice Processing – Instead of printing and passing invoices for approval, use an automated workflow where documents are routed digitally.
Client Agreements & Contracts – Use e-signatures instead of printing and mailing contracts.
HR & Employee Records – Store everything in one secure place instead of digging through filing cabinets.
Standardizing these workflows ensures consistency and prevents employees from falling back on old habits.
4. Assign Document Management Roles
Not every employee needs access to every file. Set role-based permissions to control who can view, edit, and delete documents. Typical roles include:
Admins – Manage system settings and user access.
Managers – Approve documents and oversee workflows.
Employees – Upload, edit, and retrieve files as needed.
Restricting access minimizes security risks and ensures files are handled correctly.
5. Monitor Usage and Provide Ongoing Support
The first few months after implementation are critical. Regularly check:
Are employees using the system correctly?
Are they running into issues?
Do workflows need adjustments?
Schedule follow-up training and encourage feedback. A designated EDMS support person can help troubleshoot problems and reinforce good habits.
Final Tip: Make Paperless the Default, Not an Option
To truly go digital, make it easier to use the EDMS than to fall back on paper. Remove physical filing cabinets, disable unnecessary printing, and reinforce digital-first habits in team meetings.
With the right training and workflows, your business can fully transition to a paper-free, efficient system that saves time and money.
Conclusion
Running a small business is hard enough—you don’t need paperwork slowing you down. An Electronic Document Management System (EDMS) isn’t just a convenience but a sweet game-changer that puts you ahead of the competition. While others waste hours digging through stacks of paper, losing critical documents, and scrambling to stay organized, you’ll have every file at your fingertips—secure, searchable, and accessible from anywhere.
This isn’t the future of business. This is how smart businesses operate today. The choice is simple: Stick with outdated, time-consuming processes—or upgrade to an EDMS and move your business forward.
The best time to go paperless? Yesterday. The second-best time? Right now.
Why Small Businesses Need to Ditch Paper for Digital