SharePoint vs. Document Management Software: Which is Right for Compliance?

Balancing Compliance, Efficiency, and Security: SharePoint vs. Dedicated Document Management Software

As a business, you must adhere to regulatory requirements while maintaining efficiency and security.

SharePoint and dedicated document management software offer tools to handle documents, but their capabilities, focus, and effectiveness in compliance-related workflows differ.

What are the main differences between SharePoint and Document Management System?

1. Document Storage vs. Process Optimisation: SharePoint is primarily designed for team collaboration and document sharing. While it includes features for versioning and basic workflows, it focuses on file storage and team communication. Conversely, a document management system goes further; think document capture, classification, and automated workflows tailored to compliance heavy processes. 
   
   For instance, with document management software such as DocuWare, you can automatically extract key metadata, archive documents securely, and integrate with other systems for smooth data exchange.
2. Workflow and Automation: SharePoint workflows can handle basic tasks but often require extensive customisation, which can be time-consuming and reliant on IT resources.
   Document management software configures workflow templates to automate tasks like invoice approvals or contract reviews. This is crucial in compliance management, where deadlines and accuracy are critical.
3. Security and Compliance: While SharePoint provides security controls like access permissions and encryption, a document management system offers advanced features tailored for compliance. 
4. Integration and Usability: SharePoint integrates well with Microsoft Office tools, making it a familiar choice for teams already invested in the system. However, software from DocuWare, for example, supports broader integration capabilities and connects with other third-party tools. This flexibility allows for streamlined compliance workflows across diverse organisational systems.
   

Take Control of Compliance with Document Management Software

• Audit Readiness: Clear, chronological records make it easy to track document changes, locate specific files, and demonstrate compliance during audits.
• Regulatory Checks: Many industries require document retention policies, so proper indexing ensures that documents are preserved and disposed of according to regulations.
• Transparency: A documented history of changes aids in maintaining accountability and trust.

• Accuracy in Compliance Documentation: Mistakes in records, such as invoices, contracts, or reports, can result in penalties for non-compliance.
• Real-Time Updates: Synchronising documents ensures all stakeholders work with the latest documents, reducing the risk of using outdated or non-compliant versions.

3. Automation of Time-Intensive Tasks for Strategic Focus
Tasks such as invoice matching, regulatory reporting, or compliance checks can be automated.

• Regulatory Reporting: Many compliance frameworks require periodic reporting. Automating this ensures consistent and timely submissions, reducing risk.
• Error Reduction: Automating repetitive processes will reduce manual intervention and improve accuracy in regulatory tasks such as data submissions.
• Focus on Compliance Strategy: By saving time, teams can dedicate resources to proactively identifying and mitigating compliance risks.

4. Secure and Compliant Remote Access
Cloud-based document management systems allow for secure, compliant document access, even in remote or hybrid work environments.

• Adherence to Data Protection Laws: Cloud solutions often offer encryption and audit trails, aligning with frameworks like GDPR, ISO 27001, for example.
• Secure Access: This ensures that compliance-critical documents remain available and protected during disruptions.
• Global Compliance: Cloud storage can support geolocation-based compliance, ensuring businesses acknowledge data and local regulations. 

The Missing Tools in SharePoint: Why Document Management Software is Essential

While SharePoint can handle basic document needs, a dedicated document management software system is better for compliance managers. It offers tools for secure archiving, workflow automation, and compliance reporting that SharePoint often lacks. Document management software can mitigate risks, improve efficiency, and ensure the company is always audit-ready.

Using a Document Management System might mean some compromises in the navigation, look, or user experience. But it's usually easier to adjust these to fit your business needs than to build and maintain a solution in SharePoint.

You can dig deeper into the solution here, or take a tour of the platform.