An employee searching a rack of documents just to find a page from a file or an employee entering a keyword or file name in their computer and getting the file in two or maybe three seconds — who do you think is doing it, right? Obviously the second one, and this is what technology brings to the table.

Luckily, data management has been revolutionized thanks to high-end software like virtual data rooms. Time is money, and you cannot waste it on finding a document from your office table drawer.

Let’s help you explore how the data room software can help your business document management.

Contents

What Is Data Room Software?

A cloud-based data storage platform and a secure online workspace, a virtual data room helps businesses safely store their confidential and routine work documents in a centralized place.

As data rooms are remotely accessible, employees, professionals, corporate teams, investors, and stakeholders can access business data from anywhere, anytime.

What’s more, virtual data rooms are integrable with multiple operating systems, including iOS and Android. That means data room users can access it through their smartphones.

In addition to that, the data room allows users to share files, communicate privately, and start group discussions. In short, an electronic data room is also a virtual workspace.

Effective Data Management With Virtual Data Rooms

1. Centralized Data Storage

If your business still follows a paper documentation system, you would know that every department maintains its own independent database.

Accounting departments maintain separate records while HR keeps its documentation apiece. What if these departments have to collaborate?

What if they need access to each other’s data repository? These are legitimate concerns, and these types of transactions occur regularly in organizations.

Data room services can provide a solution for these issues. As data rooms are cloud-based, centralized data repositories, you can store every single business document in one place.

Financial statements, contracts, agreements, tax records, shareholder lists, or any other business document can be stored in the virtual data room. The best part? You can store data in the document, audio, and video form.

2. Data Organization

A virtual data room allows you to organize your business data according to your needs. You can create folders, subfolders, and folders in subfolders, at your ease.

For instance, you can store all financial statements of a specific year in one folder. Also, you can segregate types of financial statements and store them in different folders (a folder for the last 10 years’ profit and loss statements).

You might think that accessing a file from subfolders will still take time, but what if you forget where you stored a specific file?

Dataroom software’s advanced search options can help you locate any file by entering a phrase, keyword, or file name.

3. Seamless Data Sharing

Dataroom software has made data sharing easier, faster, and safer. Depending on your data room subscription plan, you can add hundreds of users to the data room.

That means they won’t have to share confidential data through emails.

Users in the data room can share or edit any document (depending on their permission settings). They can leave notes or add comments and work on shared documents.

The remote accessibility feature and ability to share or edit documents in real-time is beneficial for investors or stakeholders.

It is impossible for them to visit business premises regularly but getting updates about business is also essential.

With virtual data rooms, investors can access permitted documents whenever they want, annotate files, and communicate with anyone in the data room.

4. Data Security

Alright, you have stored all your business data in one place, but what if you don’t want a user or a group to access a folder or a file? What if you don’t want someone to edit or alter a document? Can you do that in dataroom software?

Yes, a secure data room protects your business documents from external and internal threats. The data room administration can set customized user roles according to its needs.

The administration can restrict any user or group from accessing, altering, downloading, or printing a document (or a part of it). As a matter of fact, you can restrict anyone from taking photos or screenshots of the data room’s screen.

5. Transparency

One of the best things about a virtual data room is that you can monitor every data room activity. The data room administration can monitor who accessed a file, viewed, or edited it.

The audit trails can give you second-by-second detail of everything happening in the data room. In fact, modern data rooms have a screen recording feature that can be used to keep a video record of any important activity in the data room.

Summing It Up

Virtual data rooms are not only useful for storing business data; they help you organize it according to your needs and make data sharing and management effortless.

Most importantly, the data stored in VDRs is safe from external and internal threats.

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