Document flow rules in the organization

Introduction

Document management, in a broad sense, is the movement of documents in an organization from the moment they are created or received to their transfer to storage in the archive. This includes the processes of recording, storing, archiving, tracking and retrieving both electronic and paper documents. Electronic document management, accordingly, is a similar process, but with documents in electronic form. Various sources provide similar definitions, emphasizing the cyclical nature of document movement in an institution.

The effective work of any organization largely depends on the established document management, as it provides speed, transparency and control over all business processes reflected in documents. Optimizing document management allows companies to save time and money, increase employee productivity and minimize the risks of losing important information. Properly organized document management enhances the efficiency of the enterprise management system, accelerates the exchange of documents between counterparties and increases the efficiency of accounting. The functioning of the enterprise as a whole depends on how document management is organized.
The relationship between document flow and the enterprise management information system is fundamental. Document flow is the basis of the management information system, and its proper organization significantly increases the efficiency of the management apparatus. The speed of obtaining information necessary for making management decisions depends on the clarity and efficiency of the movement, processing of documents and their transfer for execution. An imperfect document management system inevitably leads to failures in all business processes.
It is important to distinguish between internal and external document flow. Internal document flow covers the movement of documents within the company, that is, the exchange of documents between different departments and employees of one organization. External document flow involves the movement of documents outside the company, including exchange with counterparties, customers, partners, government agencies and other external organizations. Both of these aspects are critically important for ensuring the effective operation of the enterprise.

Basic concepts and classification of document flow

Document management is defined as the movement of documents in an institution from the moment of their creation or receipt until the moment of their transfer to the archive for storage. This process covers the entire life cycle of a document, from its initial registration to the moment when it becomes part of the organization’s archival fund. The Unified State System of Records Management (USRSM) is a scientifically organized set of basic provisions, norms, rules and recommendations that regulate the processes of records management. The mention of the USRSM indicates the existence in Ukraine of standardized approaches to document management, which must be taken into account by organizations.
There are several main types of document management, each of which has its own characteristics. Internal document management, also known as corporate, includes the movement of documents within the company, between its divisions and employees. Examples of internal documents may be acts, orders, statements, cash orders, travel letters, internal labor regulations, job descriptions, regulations on wages, vacations, accounting and other aspects of activity, collective agreements, staff lists, labor contracts, instructions on electrical safety and labor protection, registration and accounting journals. A typical scheme of working with internal documents involves creating and filling out a document card, creating a resolution and its approval by the manager, as well as executing the resolution itself.
External document flow covers the movement of documents outside the company, that is, exchanging documents with counterparties, customers, partners, government agencies and other external organizations. External documents include supplier invoices, bank statements, contracts, agreements, estimates, receipts, time sheets, and powers of attorney. A collective agreement is also an important organizational document that regulates relations with employees and can be considered external to internal management processes.
Electronic document management is a set of processes for creating, processing, sending, transmitting, receiving, storing, using and destroying electronic documents. The advantages of electronic document management are increased efficiency, timeliness, accuracy, transparency and efficiency of business processes, as well as reduced time, labor and financial costs. At the same time, its implementation requires appropriate software.
Paper document management is a traditional method of working with documents on physical media. Although electronic document management is gaining popularity, paper is still used by many organizations. Mixed document management involves the parallel existence and mutual complementarity of paper and electronic document management. This approach can be useful in the transition to the full implementation of electronic systems, allowing you to reduce the cost of preparing internal documentation and maintain centralized control over important documents. However, it can be less effective and more expensive compared to fully electronic document management.
Organizational documents are classified according to various criteria, including name, origin, purpose, form, deadline, degree of publicity, stage of creation and storage period. By purpose, organizational, administrative, reference and informational, accounting and financial and personnel documents are distinguished. Organizational documents define the structure, functions and responsibilities in the organization, examples are regulations, charters, job descriptions and staff lists. Administrative documents are used for operational management and issuing directives, such as orders, orders, resolutions, decisions, instructions and resolutions. Reference and informational documents provide information and analysis, for example, acts, certificates, report notes and official letters. Accounting and financial documents record financial transactions and accounting data, including acts, orders, receipts, invoices and tables. Personnel documents relate to employees, for example, applications, autobiographies, resumes and orders on personnel issues.

Stages of document flow in an organization

Document flow in an organization goes through a number of sequential stages, starting with the creation or receipt of documentation. The first step is the initial processing of received documents, which may include studying and sorting. The next important stage is the registration of documents, which records the fact of receipt or creation of a document. After registration, the documents are transferred to the appropriate officials for consideration. The manager reviews the document and sends it to the executor for execution. The stage of document execution involves taking the necessary measures specified in the document. Control over execution is an important element of document flow, ensuring timely and high-quality execution of tasks.
Separately, the stages of processing and sending of outgoing documents should be distinguished, which include drafting a document, its approval, checking the design, signing, registration and sending to the addressee with subsequent filing of a copy in the file. The final stage of document flow is the formation of files and their transfer to the archive for storage. In addition, during the life cycle, the document can be used and subsequently destroyed in accordance with the established storage periods.
For effective organization of document flow at the enterprise, a Document Flow Schedule is developed and approved by the manager. This schedule regulates the movement of documents from the moment of their creation to their transfer to storage. The fact of receipt of a document at the enterprise is necessarily recorded by registration, after which the document is considered to be included in the documentation fund. The persons specified in the administrative document or management resolution are responsible for the execution of the document. There are three main flows of documentation: incoming, outgoing and internal documents. Processing outgoing documents involves a number of stages, including drawing up, agreeing, checking the registration, signing, registering and sending. Preparing files for the archive includes an examination of the value of documents and their registration.

Rules for document processing in Ukraine

In Ukraine, there are clear rules for document preparation, which are standardized standards of current legislation. All official documents of the enterprise must be legally drawn up, reliable, objective, concise, structured, written in a competent language in a business style, transparent and understandable, comply with state regulations and not violate ethical norms. The office management branch is responsible for managing the entire document flow process. Failure to comply with office management standards may lead to the documents being declared invalid.
The main standard regulating the procedure for preparing organizational and administrative documents is DSTU 4163:2020 “Unified system of organizational and administrative documentation. Requirements for document preparation”. This standard is mandatory for all legal entities in Ukraine and applies to organizational, administrative and informational and analytical documents regardless of the information medium (paper or electronic). It determines the composition and content of permanent information of document details.
The mandatory details of documents created by legal entities include: the name of the legal entity, the name of the document type (except for letters), the date of the document, the registration index of the document, the title of the document text, the text of the document and the signature (for electronic documents – an electronic signature or seal). The name of the legal entity must correspond to the full name specified in the regulation (charter), and be printed in capital letters. The date of the document is affixed on all official stamps. The registration index can be presented in the form of a barcode or QR code in automated systems. The title of the text must be short, grammatically consistent with the title of the document and reflect its content. The text of the document is presented concisely, competently, clearly and objectively in the state language. The signature includes the title of the position of the person signing the document, personal signature, proper name and surname in capital letters. The addressee is indicated in accordance with the established rules, including the name and surname in the dative case and the mailing address (if necessary). The document is also marked with marks of familiarization, receipt and execution.
There are rules for the execution of accounting and financial documents, established by the Regulation on Documentary Support of Accounting Records. Primary documents can be in paper or electronic form and must contain mandatory details, such as the name of the document, date of compilation, name of the enterprise, content and volume of the business transaction, unit of measurement, positions of responsible persons and personal signature. The document flow schedule is important for the timely receipt of primary documents for accounting. Corrections in accounting documents must be made according to special rules, and in some documents (cash, banking, securities transactions) corrections are not allowed. All accounting documentation must be drawn up in Ukrainian.

Organization of document flow at the enterprise

Effective organization of document flow in an enterprise is based on a number of principles, including efficiency, minimizing time and labor costs, direct movement of documents to the executor, one-time consideration of documents by the responsible employee, minimizing returns of documents to previous stages, sending documents to executors in accordance with their responsibilities to avoid duplication, rhythmic movement of documents for even distribution of the load, one-time registration, continuity of movement, creation of a single base for centralized storage, effectively organized document search system and compliance with regulatory requirements.
There are various approaches to organizing document flow, including centralized, decentralized and mixed. Centralized document flow involves the concentration of all document flow functions in one unit. The advantages of such an approach are enhanced control, standardization of procedures, better resource management and increased information security. The disadvantages may be potential bottlenecks, slower processing for remote units and less direct contact of the central unit with operational activities.
Decentralized document management involves distributing document management functions among different departments. The advantages are faster processing within departments, better responsiveness to local needs, and closer connection to operational activities. The disadvantages can be the difficulty in maintaining overall control and standardization, potential inconsistencies, and problems with document retrieval and storage.
Mixed document management combines elements of centralized and decentralized approaches. It allows you to centralize control over critical documents while distributing other document management functions. This approach can be a transitional stage to the full implementation of electronic document management. The advantages are flexibility, potential savings on internal documentation costs, and maintaining control over important documents. The disadvantages can be less efficiency and higher cost compared to fully electronic document management.
Organization of document management in private enterprises involves the mandatory maintenance of a number of personnel documents, such as information on the accrual and payment of wages, order registration journals, time sheets, vacation schedules, and job descriptions. For individual entrepreneurs with employees, the Office Management Instruction is not mandatory, but for legal entities, it is. The requirements for personnel office management are uniform regardless of the form of ownership. In state institutions, the head of the institution is responsible for organizing office management and archives. The office management service is responsible for registration, accounting, organization of document management, and storage of documents. The Office Management Instruction is mandatory and regulates both paper and electronic document management.

Legislative regulation of document flow in Ukraine

The legislation of Ukraine provides comprehensive regulation of document flow. The key regulatory act in the field of electronic document flow is the Law of Ukraine “On Electronic Documents and Electronic Document Flow”, which defines the basic principles of using electronic documents and their legal force. The Law of Ukraine “On Electronic Identification and Electronic Trust Services” regulates the issues of electronic signatures and trust services necessary to ensure the legal significance of electronic documents. The Law of Ukraine “On Accounting and Financial Reporting in Ukraine” establishes requirements for accounting documentation. The Civil Code of Ukraine contains provisions on electronic transactions. The Commercial Procedure Code of Ukraine and the Civil Procedure Code of Ukraine determine the status of electronic documents as evidence in legal proceedings. An important regulatory act is the Regulation on Documentary Support of Accounting Records, which establishes the rules for maintaining accounting documentation. General rules for organizing document flow are determined by the Rules for organizing office work and archival storage of documents in state bodies, local self-government bodies, enterprises, institutions and organizations. Standards for the preparation of organizational and administrative documents are established by DSTU 4163:2020 “Unified system of organizational and administrative documentation. Requirements for the preparation of documents”. The list of standard documents with an indication of their storage periods is determined by the relevant regulatory act.
The specially authorized central executive body in the field of archival affairs and office work is responsible for issuing regulatory legal acts in the field of office work and establishing requirements for the forms of organizational and administrative documents. State archival institutions and archival departments of city councils manage the organization of office work and monitor compliance with the relevant instructions and nomenclatures of cases.

Document workflow optimization and error prevention

Document flow optimization in an organization is an important task aimed at increasing efficiency and reducing costs. One of the key areas of optimization is the implementation of electronic document flow (EDM) systems that allow you to automate processes, reduce costs and increase the efficiency of working with documents. Developing clear internal document flow instructions (Document Management Instructions) is also an important step in streamlining work with documentation. Minimizing the number of approvals and instances through which a document passes helps to speed up document flow. A clear definition of responsibility for each stage of document flow is the key to coordinated work. Using standard forms and document templates allows you to unify processes and reduce the number of errors. Implementing a reliable document storage and retrieval system ensures their accessibility and preservation. Regular review and optimization of document flow processes allows you to identify and eliminate shortcomings. Automation of data processing and archiving also helps to increase efficiency. Ensuring information security and data protection is critically important, especially when using electronic document flow. Training staff in the rules of document management and the use of appropriate systems is a prerequisite for successful optimization.
When organizing document management, typical mistakes should be avoided, such as the lack of a clear plan for the implementation of electronic document management, insufficient training of personnel, the wrong choice of electronic document management system, lack of testing before launching a new system, ignoring legislative requirements, underestimating the role of cybersecurity, unrealistic expectations about the benefits of automation, errors in document processing, loss or damage to documents, delays in processing and approving documents, lack of control over the movement of documents, and improper organization of document storage.

Conclusion

Document management rules in an organization are a set of norms, principles and procedures aimed at ensuring the effective and legally significant movement of documents. Ukraine has a developed legislative framework regulating this area, including laws, regulations and state standards, such as DSTU 4163:2020. The organization of document management requires careful attention to the classification of documents, the stages of their processing, the rules for registration and the choice of the optimal document management system (centralized, decentralized or mixed). To achieve high efficiency and prevent errors, organizations should pay special attention to optimizing document management, in particular by implementing electronic systems, developing internal regulations, training personnel and ensuring information security. Compliance with legislative requirements and taking into account best practices in the field of document management is the key to the successful operation of any Ukrainian organization.