Digital Vs Electronic Documents - The Difference

The digitization of trade, especially since the COVID-19 pandemic, has taken an uphill turn. Organizations are starting to go paperless as much as possible, and with the official announcement of the Electronic Trade Documents bill in the UK Queen's Speech, the digital version of all types of documentation will also be given the same legal standing as that of their paper counterparts very soon.

Digitization helps improve an organization's workflow and streamline the management of their records, thereby giving them an opportunity for faster data retrieval, lesser overhead costs, and reduced overall costs. However, before transitioning from paper documents to digital ones, you need to understand the difference between digital and electronic documents.

The Definition - Digital & Electronic Documents

A digital document is a readable document that, in its original form, is paperless. One of the best examples of the same could be an invoice in its PDF form since both the sender and the receiver can interpret the data mentioned in the document with ease, making it feasible to enter the information into the organization's ERP. A digital document, even though similar to its paper counterparts, can solely be viewed on any electronic device. So, more often than not, when someone receives a digital document, they are printed for ease of internal transfer.

An electronic document, on the other hand, is pure data written in binary digits that only a computer will be able to interpret. This means that it will be challenging for anyone to understand, making it solely meant for transfer from one system to another, without any human intervention. As soon as it is received or sent, all data present in the electronic document is easy to access or modify, and you don't have to spend any extra resources or time on printing.