The point of this article is to review the problems and specifications of the Electronic Document Management System (EDMS) in the private sector. Author introduces the basics of EDMS, classifies it and analyses the problems to point out the role and aspects of EDMS. EDMS is designed to manage and maintain the flow of electronic documents. EDMS can fully replace the time-consuming paper document preparation, submission and coordination, thereby reducing the time required to do these tasks. These system implementation will minimize the costs of administrative expenses. Today, a variety of EDMS are available: there are systems, which specializes exclusively in electronic document management and systems that are components of multi-systems. EDMS has three basic electronic document functions: registration, relation and the search options. The author has used her own experience that she has gained from development and maintaining of the EDMS systems. Author has had at least 6 years of work experience in IT sphere. She also used and examined actual information that is available on the Internet and is related to the topic of this article. Overall, this article mentions only a part of the existing problems. Author thinks that the problems that occur during development and maintenance of the system could be solved by sorting out all of the legal issues first. Furthermore, the innovative service - cloud computing, should be made more popular than it is now in Latvia. Using this service, Latvian entrepreneurs will be able to reduce their expenses and redirect them to other purposes to focus on their profit. Author recommends small and medium-sized businesses to use this service. This article reviews the pros and cons of cloud computing. The author thinks that Latvia is not ready to use this service due to the lack of the infrastructure - Latvian Internet services appear optical Internet that is fast, but this service is available only in capital of Latvia. Although, the service holds a great deal of potential for the future use - it is a great opportunity that small and medium-sized businesses would benefit from, being unable to afford the large scale information systems infrastructures or development and maintenance.