To keep your business running cleanly and smoothly, you need to keep a clear structure and organization. However, it can be very difficult to do this because business involves a huge volume of documents, and if it’s also in paper form, it becomes several times harder to work with them. Using a data room can make your task much easier, make your document space more organized, and not take up too much of your time. In this article, we’ll look at how to create a quality data room folder structure.
What is indexing and why use it when organizing documents
Document indexing is an index that helps users better navigate among files. It is also a data room table of contents that lists the list of documents provided to certain invited users.
This is a very useful tool that will help you more than once during due diligence. Since a company accumulates a large amount of data during due diligence, indexing helps you to pare down all of these files and make them easier to find, which saves you a lot of time, especially because indexing is automatic.
Indexing renders documents available for retrieval, using smart search you can type in a key number or document title and it will find it in seconds.
How to build a data room organization structure
A virtual data room is a place where many processes take place simultaneously since many users can perform different actions within it and make use of different documents.
A quality VDR gives administrators the ability to organize and control as well as monitor documents throughout the merger and acquisition process.
These functions may include:
- Security level controls on documents -set different levels of permissions to documents, you can do this either role-based or manually. You can also prohibit copying, editing, forwarding, and uploading the document
- Keep track of what goes on inside the document, who goes there, at what time, and what they do there
- Functional renaming of folders and files
- Create your request statuses
- Setting and editing the index
By competently using all these functions and VDR’s unlimited folders and files you can create your unique structure of documents which will be convenient both for your employees and your potential customers.
How should you organize your data room folder structure?
Below we’ve included some tips on how best to organize the folder structure in your VDR for maximum efficiency:
- Create folders so that you can identify business transaction steps by their name, start with the main topic
- Separate information intelligently with several key folders that will contain specific categories of documents. The name of the folders should vaguely identify these categories
- Crease the number of top-level folders to make scanning easier while still maintaining a neat, structured look
- When you go to subfolders, be a little more specific. Select nested folders that will go into each of the top-level folders
- These nested folders will keep the topic better arranged
- Inside each nested folder there can be multiple subtopics with the same names and data holding patterns
If you follow the above tips, no matter how many documents are in your virtual space, they will all be in their place and create a coherent structure that is easy to understand and adapt to. Due to the features of VDRs, namely their excessive security, you can upload absolutely any level of privacy into the space.