Physical documents are gradually being phased out as time goes on. Small to large-scale companies have shifted to digital documents or electronics.
The advantages of using digital documents nowadays are numerous, starting from easy storage to an effective analysis process.
But before we get any further into the benefits, we must first define what a digital document is.
Definition of a digital document
Most people assume that a digital document is the same as an electronic document.
In literal terms, it’s true, a digital document is an electronic file or digital record that contains information.
The information contained within can be in a variety of formats, including text, images, sound recordings, or a combination of formats, such as video.
A digital document can be read, shown, and edited using a computer device or another electronic device such as a cell phone or tablet. This is what distinguishes physical documents consisting of paper or other physical materials.
Digital documents have numerous advantages, ranging from ease of sharing and editing to easy storage that does not require as much space as physical documents.
Advantages of Using Digital Documents
Using digital documents in daily activities or business has numerous advantages compared to physical documents. What are they?
1. Easy to access
The first advantage that can be felt is ease of access. A digital document can be accessed from anywhere with an electronic device such as a computer,smartphone, or tablet. This allows for faster and easier access than searching for physical documents that may be scattered in various places.
2. Save storage space
Digital documents do not require physical storage space. In addition, we do not need to rent or allocate space for document storage, which means this can help save business operational costs.
The process of archiving documents is also easier, all we have to do is create folders on electronic devices and then archive documents according to category. So it’s more organized, right?
3. The document is not easily broken
Physical documents are at high risk of damage, for example, if exposed to water, caught fire, or experienced ink fading due to being stored for too long. That risk may not be found in a digital document because all data is saved electronically.
4. Easy to send or share
A digital document can be easily shared via email or another online platform. This allows the owner to collaborate with others more easily, especially if they are in different locations.
5. There are numerous formats
A digital document can be in a variety of formats, including text, image, video, or a combination of all three. This enables us to store numerous formats based on our needs and requirements.
6. Easy to analyze
The use of documents is not only as a medium for storing information but also for analysis as needed. Unfortunately, analyzing physical documents is very time-consuming because we have to open page after page to summarize them.
Meanwhile, with digital documents, the analysis process can be carried out easily with the help of computer devices and can even be automated.
7. Easy to modify
In certain conditions, changes to the data in the document may be required. In a digital document, changes can be made quickly and easily because we do not need to reprint them.
8. Help in environmental protection
The use of digital documents can help reduce paper use. We all know that paper is created from trees that have been felled in vast numbers. If we switch to digital documents, we contribute to environmental preservation.
Data privacy and security are the drawbacks of digital documents
While there are numerous benefits to using digital documents, it cannot be denied that there are some drawbacks that need attention, including those related to data security and privacy.
Digital documents are extremely vulnerable to hackers and cyberattacks. If a good security system is not employed, information in documents can be stolen, misused, and spread without permission.
An example of a digital document
Here are some examples of digital documents that we frequently encounter:
- An electronic identity card
- An electronic contract document
- Invoice purchase via email
- Online certificate
- Digital memo
- Digital form
- PDF file
- Digital documents in the form of MP3 audio files
- Video documents
Leverage OCR technology to quickly analyze digitized documents.
That is a short information of the advantages of using digital documents, one of them is easy to analyze. However, it is important to highlight that digital document data analysis requires the use of software such as Optical Character Recognition (OCR). OCR allows us to convert physical documents into digital and then analyze them automatically, making work more efficient and effective.
One of the best OCR programs currently available is OCR+ from Fintelite. Our OCR+ utilizes AI technology to quickly store data in both physical and digital documents with up to 99% accuracy.
The data that has been stored in the Fintelite dashboard can then be analyzed automatically by relying on machine algorithms. The advantages of this software are that it is very suitable for financial management in medium- to large-sized industrial companies.
