5 most common uses for virtual data rooms

It comes as no surprise that businesses are steadily moved away from physical data storage and fully embracing digital solutions. Virtual data rooms are a huge reason for this shift.

That’s because virtual data networks help businesses protect their files online in a safe environment, unlike email or other cloud-based options. Data rooms are especially helpful to companies with a large amount of content that needs to be organized, accessible, and edited by numerous people.

Not sure what makes data rooms special? Keep reading for the most common uses for virtual data rooms – you might decide you need to switch to these secure networks for future file sharing.

1. Share secure documents

Virtual data rooms are ideal for storing sensitive information since they are secure platforms and control who is allowed to access certain information. However, there are several other common reasons why data hosts are enjoying popularity.

This comes in handy when a company is taking on new employees. You will need a way for your new employees to share documents that contain details like bank information and social security numbers, which should only be accessible to those in the data room.

2. Facilitate strategic partnerships

Companies often collaborate with other companies or independent contractors to enhance their services or processes through data rooms. Much like an audit, a virtual data room provides an easy way for a company to share necessary procedural or onboarding documents without compromising other sensitive company details.

Clients are also much more likely to trust your business if you’re willing to share files through hosts like Firmex’s Virtual Data Room. It shows that you care about their cyber-security.

3. Fundraise with partners

As a general rule, fundraising involves a large amount of document sharing. With a virtual data room, both established businesses and startups can benefit from keeping sensitive fundraising details in virtual rooms. These secure platforms facilitate the exchange of donor and payment information.

4. Make audits from agencies easier

An external agency, including accountants or legal councils, will often need access to a company’s financial records. Virtual data rooms provide a secure way for a business to provide an external agency with the specific information they need without other sensitive company information being compromised.

5. Communicate with board members

Your board members might want to be as involved with a business and their leadership team as possible. This involves providing updates on operations, projects, and confidential information that isn’t ready to be shared with the public.

It’s also true that board members aren’t often located in the same area, so providing a digital source to share information is a great way to build communication with everyone involved.

This is also a great way to update things like contact information or security documents. For example, instead of sending an individual email to board members requesting they update their contact information, you could instead direct them to a form located in their shared virtual data room.

Final thoughts

When you start thinking about ways a company can utilize a virtual data room, the benefits are endless. Every part of a company can benefit from human resources to hiring committees.

Keeping company documents and communications safe, secure, and accessible is one of the most important things to ensure a company’s success. Having an organized, central online hub for content sharing takes away the stress of organizing all of these documents in-person. Your team can focus on making your company the best it can be, not scrambling to store paperwork!