What Is Software Documentation: How to Create, Best Practices & More

As someone who has worked with multiple software development teams over the years, I can confidently say that software documentation is one of the most critical, yet often overlooked, aspects of the development lifecycle. 

I’ve seen teams struggle with scattered, outdated, or incomplete documentation, which causes friction between developers, support teams, and end users. Whether dealing with lengthy manuals no one reads or constantly updating code snippets, the problem grows exponentially.

Creating software documentation helps streamline communication, reduces support queries, and ensures users can easily understand and use the software, improving efficiency and satisfaction.

In this in-depth guide, we’ll walk through the different types of software documentation, best practices, and practical examples to help you get started.

What Is Software Documentation?

For those new to the concept, software documentation is an extensive collection of information on software products and processes, meticulously crafted to guide users, developers, stakeholders, and maintenance teams through the complexities of software usage, development, and management. 

It acts as a roadmap, enabling a deeper understanding of the software’s functionality, architecture, and operational procedures. It serves various purposes, from instructing end-users on navigating and utilizing software features to providing developers with insights into the codebase, design decisions, and development practices. 

For example, the software documentation for a photo editing application would include a section on ‘Advanced Image Editing Techniques’ with step-by-step instructions for using tools like the Magic Wand for selective color changes, Layer Masks for complex image compositions, and the Clone Stamp for removing unwanted objects.

Let me show you a real-life example of how you can optimize your end-user documentation with software documentation creator software:

What Are the Best Practices for Creating Software Documentation?

Before exploring the steps to create software documentation that your customers and users love, here are software documentation best practices to ensure your documentation is comprehensive, easy to understand, and accessible:

1. Identify Your Audience

Tailor your content to your users’ technical skill level, roles, and tasks. For non-technical users, keep it simple; for developers, include more detailed, in-depth explanations.

2. Use Templates for Consistency

Implement software documentation templates to streamline the documentation process. 

A well-structured template should include an introduction, features, system requirements, installation instructions, and additional technical details.

3. Make Documentation Accessible

Ensure your content is accessible to all users, including those with disabilities. Provide documentation in multiple formats and use clear fonts and colors.

4. Incorporate Visuals

Use screenshots, diagrams, and videos to clarify complex concepts, enhance user engagement, and make documentation more intuitive.

5. Regularly Update & Review

Keep your documentation up-to-date with software changes. Regular reviews based on user feedback ensure accuracy and relevance.

6. Encourage Feedback & Test

Gather user feedback to identify gaps and areas for improvement. 

Additionally, test your documentation by having users unfamiliar with the product try to navigate it based on the content provided.

How to Create Software Documentation with a Software Documentation Tool

Creating software documentation may seem daunting, but it becomes much more manageable with the right tools and a clear approach. 

I use ProProfs Knowledge Base to create my software documentation, and here’s how you can do the same:

1. Start with a Template or From Scratch

The first step in creating effective software documentation is choosing how to organize it.

You can use pre-built templates that align with everyday needs, such as onboarding guides, troubleshooting FAQs, or user manuals. Here’s how:

• After logging in, click on Sites, and then select + Create New
• Choose a New Site, and pick a template that fits your needs. For instance, select the appropriate template if you need a user manual

If you prefer a custom setup, you can start from scratch and organize content into folders like Product Information, Troubleshooting, and Installation.

2. Customize Your Template

Once you’ve selected a template, it’s time to personalize it. 

You can modify the layout to reflect your brand by changing fonts, colors, and adding your logo. Here’s how:

• Click Edit Home to access the builder
• Start with the logo. Navigate to the highlighted icon in the top right and upload your logo.
• Add menu items to your header to help users navigate efficiently. You can customize these items by adding a URL, making it a button, and adding a background

You can further customize your homepage to make it completely yours.

3. Import Existing Documents & Content

Got old documentation in Word, PDFs, or slides? 

No need to rewrite everything. You can import existing files and convert them into the structured format of your help center. Here’s how:

• Click Settings in the header menu. From the dropdown menu, select the site where you wish to import the files
• Go to Import Sites > Import Files
• Check this help page if you want to prepare for the pre-import process.

No need to rewrite everything—just reuse, tweak, and go.

4. Create & Enhance Content with AI Writer

Use the AI Writer to generate content drafts, refine instructions, or make complex paragraphs more digestible. Here’s how:

• Click +New, choose Page, and select Article as the template
• Click on the AI icon, select Generate with AI, and let it create a solid first draft
• You can also prompt the AI for specific tasks, like: “Generate a step-by-step guide for resetting a password for users with no technical knowledge.”

Here’s an example of a sample prompt I used to create software documentation content with AI. You can tweak this prompt depending on your topic and other requirements:

Here’s what the result looks like:

5. Add User Roles & Permissions Documentation

Clearly define the different user roles and permissions within the software. 

This is particularly important for complex systems with multiple access levels, as it ensures users understand what they can and can’t do within the platform.

• Detail role-based access control (RBAC) settings and specific user privileges
• Provide step-by-step instructions on configuring user roles and permissions in the system.

6. Organize & Make Content Searchable

Organization is key to a user-friendly documentation experience. Organize articles into categories and tags. Follow these steps to add a Merge Tag:

• In the article editor, select the location where you want to add dynamic content, such as links to related articles or categories
• Click on the Merge Tags icon in the toolbar and choose the tag you need (e.g., article links, categories, or related content).
• Insert the tag into the article, and it will automatically pull the relevant content.

Now, to add a TOC, follow these steps:

• In the Article Settings, enable the Table of Contents option by toggling it on
• The system automatically scans your article for headings and subheadings, creating a TOC with clickable links. You can customize the TOC by adjusting the headings you want to include (H1, H2, etc.) and their order.

7. Publish & Keep Content Updated

Once your documentation is ready, preview it to check for any formatting errors or broken links. Here’s how to publish:

• Click the Edit icon on the home page
• Before publishing your user manual, you can use the Preview function to see how it will look to your audience
• This lets you catch any formatting errors, inconsistencies, or broken links. Once satisfied, click Save & Done, and your manual will automatically publish

You can also share the manual URL, export it as a PDF, extract page details in JSON/XML/CSV, or create a backup in HTML.

What to Include in Your Software Documentation?

When creating software documentation, including key information that helps users understand and effectively use your software is essential. 

This should be clear, structured, and relevant to the intended audience.

1. Introduction & Overview

Provide a brief summary of the software’s purpose and core features.

Example: “This software helps users manage tasks, track progress, and collaborate in real time to improve project management efficiency.”

2. Installation Instructions

Guide users through the installation process with step-by-step instructions.

Example: “To install, download the installer from the website, double-click the file, and follow the prompts to complete installation.”

3. System Requirements

List the necessary hardware and software to run the application.

Example: “Requires Windows 10 or macOS 10.14, with at least 4GB RAM and 500MB of available disk space.”

3. Features & Functions

Detail the main functions of the software and how to use them.

Example: “Click on ‘Add Task’ to create a new task. Set deadlines, add priorities, and assign team members.”

4. Troubleshooting & FAQs

Address common issues and provide solutions or workarounds.

Example: “If the app crashes, try restarting the system or reinstalling the software. Refer to the FAQ section for detailed troubleshooting steps.”

5. API Documentation (if applicable)

Provide details for developers who want to integrate or use your software programmatically.

Example: “Use the POST method to create a new task. Here’s the endpoint: /api/tasks/create.”

6. User Roles & Permissions

Define different user types and their access levels.

Example: “Admins can manage user accounts and settings, while regular users can only edit their tasks.”

7. Visual Aids & Examples

Use screenshots, diagrams, or videos to explain complex concepts.

Example: “Here’s a screenshot of the dashboard with key features highlighted for easy reference.”

8. Security & Privacy Guidelines

Explain how user data is protected and any privacy policies that apply.

Example: “All data is encrypted and stored on secure servers with SSL protocols to ensure confidentiality.”

How to Measure the Success of Software Documentation: Metrics

Now that your software documentation is ready and doing its work, here are the key pointers for measuring the success of software documentation:

1. Tracking Reduction in Support Tickets

Track the number of support tickets before and after the implementation of documentation. 

Use a help desk software or CRM tools to analyze ticket volume trends, especially those related to topics covered in the documentation.

2. Are You Engaging Enough Users?

Monitor metrics like page views, click-through rates, session durations, and unique visitors using website analytics tools (e.g., Google Analytics). 

High engagement indicates users are finding value in your content. Watch this insightful video to learn more:

3. What’s the User Feedback?

After using the documentation, collect feedback through ratings, surveys, or user comments. 

Track the number of “Helpful” votes or positive survey responses. Low ratings or negative comments can help pinpoint areas for improvement.

4. Are Users Finding What They Need?

Analyze internal search data to see what terms users search for in your knowledge base. If searches consistently lead to helpful results, the documentation is on track. 

If users frequently search without finding relevant content, it signals gaps in your documentation.

5. Are You Resolving Issues “ASAP”?

Track how long it takes users to resolve issues after referring to the documentation. 

If issues are resolved faster, the documentation should be clear and effective. Watch this video to learn more:

6. Track Documentation Updates & Quality

Monitor the frequency of updates and how often users return to specific articles. 

An increase in updates or new content shows the documentation is being actively maintained, while returning users indicate that the content is valuable.

What Are the Types of Software Documentation?

Software documentation can be broadly divided into two main types: user documentation and technical documentation. 

Each serves different purposes and targets different audiences within the software lifecycle, from development to end-user support. Let’s discuss these types:

1. User Documentation

User documentation is designed to assist end-users in navigating and effectively utilizing software products. It usually includes product documentation and manuals:

2. User Manuals

These extensive guides provide detailed instructions on software features, usage scenarios, and step-by-step procedures for performing specific tasks. They are designed to be accessible to users with varying levels of technical expertise.

3. Quick Start Guides

These simplified, concise documents aim to get a new user started with the software. 

They highlight the basic features and steps to use the software effectively, focusing on the most common tasks a user might want to accomplish.

4. FAQs (Frequently Asked Questions)

These are a collection of answers to users’ most common questions about the software: FAQs address typical issues, concerns, or confusion, providing quick and accessible solutions.

5. Troubleshooting Guides

These documents help users identify and resolve common problems they might encounter while using the software. 

These guides offer solutions to known issues, diagnostic steps, and workaround strategies.

6. Technical Documentation

Technical documentation caters to developers, maintainers, and other technical stakeholders. It focuses on the software tool’s internal workings, architecture, and development guidelines. This category includes:

7. API Documentation

These are detailed descriptions of the software’s application programming interfaces (APIs), including endpoints, request/response formats, and example code. 

This API documentation is essential for developers integrating the software with other systems or building applications.

8. Architecture Diagrams & Design Documents

This consists of visual and textual descriptions of the software architecture and design choices. 

These documents outline the system’s structure, components, data flow, and interactions, providing a high-level overview of how the software is constructed.

9. Technical Specifications

These are detailed technical specification documents describing the software’s functional and non-functional requirements, performance benchmarks, and system constraints. 

They serve as a guideline for development and testing to ensure the software meets its intended design goals.

10. Code Documentation

It consists of inline comments and external documents that explain the source code’s logic, algorithms, functions, and classes.

Writing this type of code documentation aids developers in understanding and maintaining the codebase.

11. Development Guidelines

These consist of standards and practices for coding, testing, version control, and creating project documentation for management within the software project. 

These guidelines help maintain consistency and quality in the development process.

12. Installation Manuals

These are instructions for deploying and configuring the software in a development, test, or production environment. 

These manuals cover system requirements, installation steps, and initial setup procedures.

13. Release Notes

These consist of documentation accompanying software releases that detail new features, improvements, bug fixes, and any known issues with the latest version. 

Release notes communicate changes to users and developers, helping them understand what has been updated.

What Are Some Examples of Software Documentation?

Software documentation covers a wide range of documents, each serving different purposes throughout the software development lifecycle and beyond, into the hands of end-users. Here are some examples of software documentation:

ManageEngine by Zoho

Manage Engine’s software documentation details the anomaly detection feature of its  Applications Manager, including how it works, setting up anomaly profiles based on baseline values or custom expressions, and using the anomaly dashboard for monitoring. 

It’s structured with clear headings for easy navigation and includes steps and examples for configuring anomaly detection. The attached graphic helps to deliver the instructions better. The writing style is informative and instructional, aimed at helping users understand and implement the feature effectively.

RMS

RMS’ software documentation on “Void an Expense Charge” at the RMS Help Centre outlines removing an incorrectly placed expense charge in a cash account. 

It is structured into concise steps for easy understanding, accompanied by visual guides illustrating each process step. 

The writing style is direct and instructional, aiming to provide clear instructions. The page also consists of a visual guide to enhance readability and understandability. 

Riscure

Riscure’s user manual is an excellent example of simplicity and functionality. The page on ‘How to use Riscure’s Spider’ covers the basics of the function and then explains the subject in depth using the embedded video. 

Using multimedia, especially videos, helps explain complex concepts more clearly and makes the documentation more engaging for the reader.

What Are the Possible Challenges in Creating Software Documentation?

Creating effective software documentation comes with its own set of challenges. Here are some common issues teams face:

1. Keeping Documentation Up-to-Date: Regularly updating documentation to reflect software changes or new features.

How to Solve: Implement version control systems and schedule regular reviews to ensure the documentation reflects the latest software changes.

2. Inconsistent Quality: Ensuring the documentation maintains high clarity, accuracy, and consistency across different topics.

How to Solve: Establish clear guidelines and standards for documentation. Regularly review and edit to ensure tone, style, and accuracy consistency.

3. User Adoption: Getting users to engage with and use the documentation actively.

How to Solve: To make documentation accessible and user-friendly, include a search function, clear navigation, and visual aids. Provide users with easy-to-follow tutorials and examples.

4. Cross-Team Collaboration: Cross-team collaboration, for example, between development, design, and support teams, to ensure comprehensive documentation.

How to Solve: Use collaborative platforms where all teams (development, support, etc.) can contribute and update documentation in real time. Regular communication and feedback loops are key.

5. Dealing with Complex Content: Explaining highly technical details in a simple and understandable manner.

How to Solve: Break down complex topics into smaller, digestible pieces. Use examples, diagrams, and videos to simplify technical details for non-technical users.

6. Time & Resource Constraints: Balancing documentation with ongoing development work, often with limited time and resources.

How to Solve: Leverage automated tools and templates to streamline the process. Prioritize the most frequently asked questions and high-impact topics for documentation.

The Evolution of Software Documentation

With the rise of agile methodologies and a shift toward more interactive, user-centric documentation, the way we approach and create software documentation has continuously improved. 

This evolution helps meet both development needs and user expectations.

1. Traditional Waterfall Model

Previously, software documentation was heavily tied to the waterfall development model.

Documentation was created upfront, often in comprehensive, static manuals, and updated only at significant development milestones. 

This method led to documentation becoming quickly outdated, as the software evolved.

2. Rise of Agile & Continuous Integration

With the introduction of agile development and continuous integration practices, software documentation became more dynamic. 

Agile emphasizes working software and customer collaboration, which means documentation needs to be adaptive and regularly updated. 

This shift led to shorter, more iterative documentation processes, often produced alongside the development.

3. Self-Service & Interactive Documentation

As user expectations evolved, there was a growing demand for user-friendly and interactive documentation. 

Online knowledge bases, FAQs, video tutorials, and in-app guides replaced the traditional static user manuals. 

This shift allowed users to easily access information, reducing the need for support tickets and empowering users to troubleshoot issues themselves.

4. The Integration of AI & Automation

More recently, the evolution of AI and machine learning has influenced how documentation is created and maintained. 

AI tools are now used to generate content, suggest improvements, and even help users find solutions through automated chatbots. 

This has made it possible to produce more accurate and tailored documentation at scale.

5. Emphasis on User-Centered Design

Today, software documentation focuses heavily on user experience (UX). 

Instead of purely technical language, documentation is now designed to cater to diverse user bases, offering step-by-step guides, visual aids, and simplified explanations for non-technical users. 

Usability is prioritized, ensuring that users can find answers quickly without confusion.

Improve Product Usage & Self-Service with Software Documentation

Software documentation provides users with the necessary information to understand, utilize, and troubleshoot software effectively. By investing time and effort in creating comprehensive, accurate, and user-friendly documentation, you can significantly enhance the user experience and contribute to the success of your software product.

Remember to consider the different types of software documentation, such as API documentation, user manuals, and tutorials, and tailor your content to the specific needs of your audience. Follow best practices for creating documentation, including using clear language, incorporating visuals, and ensuring accessibility.

If you’re looking for a comprehensive platform to create and manage your software documentation, ProProfs Knowledge Base offers a robust solution. Its intuitive interface, powerful features like AI-powered search, customizable templates, and an AI text writer to create help articles and documentation quickly.