Document Management Solutions for Accountancy Practices

IRIS Accountancy Practice Solutions Whitepaper
Document Management
Solutions for Accountancy Practices
Key Questions Answered
www.iris.co.uk/opendocs
Introduction
This report, from IRIS Accountancy Practice Solutions and Invu, discusses how a document management
system (DMS) can help accountancy practices by streamlining business processes, shrinking operating
costs, improving customer service and creating a more efficient and profitable business.
All accountants are challenged by the non-stop avalanche of
documents and paperwork that pours in and out of their business
every day. Correspondence, emails, reports and files create an
enormous administrative burden in terms of filing, duplication and
document retrieval. Even if you are already using a centralised
server, documents are often misfiled, not filed at all, or lost, whilst
retrieval can be slow and frustrating.
A document management system can solve all of these problems
by turning paper documents and files into electronic data which can
be indexed, filed, stored securely and retrieved quickly, cheaply,
and efficiently. A document management system centralises all
your paperwork, reduces the amount of time your practice spends
on administration, creates a document audit trail, gives you instant
and accurate customer information, and is environmentally friendly.
But is document management for you? Will it bring you dramatic
business benefits that show up in your bottom line? And exactly
how easy is it to install and use?
This report has been compiled to guide you through the decision
making process. It details seven key questions any accountancy
practice must consider before purchasing a solution and how to
identify the best available option for your business. It also contains
a valuable case study and testimonials from accountancy practices
already reaping business benefits by using a document management
system from Invu.
While document management systems have been on the market for
a number of years many were out of reach due to cost. But prices
have now come down to such a level that a sophisticated, easy to
use system can cost as little as £1 per user per day to run. This
means that document management is now within the reach of sole
practitioners and the smallest of firms, while larger practices will
find that a comprehensive system costs less than a filing clerk and is more efficient.
Modern document management systems look and behave just like
any other Windows application and are so simple to use that little
or no training is required. New users can be up and running within
a matter of minutes. Moreover, systems such as that from Invu,
seamlessly integrate with your existing practice management
and compliance software making your business processes
even more efficient.
www.iris.co.uk/opendocs
What does a Document Management System do?
A good document management system acts as an overarching, all-seeing and all-knowing
guardian of your data and information.
And because it is not human, it performs consistently, predictably and
without bias. The best document management systems encompass
comprehensive document, information and process management
platforms that allow information to be captured from multiple sources.
They streamline time-consuming business processes, reduce the time
spent searching for documents, reduce day-to-day admin and enable
you to improve client service. Below are some of the common areas
where document management can help your business.
Correspondence
Instead of printing a copy of correspondence for comments and
amendments by staff or partners, a draft can be reviewed electronically
on-screen enabling errors to be picked up before printing onto headed
paper. And remember, a copy doesn’t need to be printed for the
file as it has already been filed electronically. In addition if your
practice management software offers letter templates these can be
automatically populated with information such as a client address
from your centralised database, and the letter saved automatically
to the right location in the DMS.
Some staff will rely on tax return software to reproduce a tax return
(removing the need for a printed copy for the file). The covering
letter to the client will always be available in electronic format and
correspondence automatically saved into the document management
system directly from your compliance software.
Email correspondence from clients affords critical information that
is not always shared across the departments of the firm. Access to
email correspondence can be opened up by automatically storing
incoming and outgoing emails and filing them straight to the correct
client folders, with no additional change to your business processes.
Annual declarations
Fit and proper forms, independence etc are needed to comply with
ICAEW requirements. Instead of distributing paper copies to be signed
and returned they can be scanned and attached to each staff member
file, and accessed by the compliance software you use every day.
Incoming invoices, bank statements and payments
Invoices can be scanned on receipt into the administrator’s in-tray
so they can be entered into the accounting records (on the purchase
ledger). The originals can be shredded - there’s no longer any need
to store them in a cumbersome filing system. Your sales invoices
are automatically saved against the client, making it easy for you
to source if the client contacts you with a question.
Similarly, monthly bank statements can be scanned after reconciling
and filed electronically together with bank reconciliations. Electronic
banking can be used to make payments to suppliers, and remittance
advices can be sent by email rather than post. Think how much
office space could be saved immediately.
Monthly reports
Aged debtors and nominal ledger reports don’t need to be in printed
format. Why not convert them into portable document files (PDFs)
and distribute them electronically? Or, better still, capture all your
documentation automatically by intercepting the print and saving
information in pre-defined folders without manual intervention?
Continued...
www.iris.co.uk/opendocs
Improve customer service
Staff handbooks and manuals
Another real bonus of document management comes in terms of
client service. Client information is instantly accessible so you can
answer any queries on the spot. Because there is a clear audit trail
of communications and transactions with a particular client, there is
no risk of error or confusion.
Staff do not need their own personal, printed copies of these. One
electronic copy can be available for all employees to access from a
shared folder. User access can be controlled so that only authorised
staff can amend or update the original. There is no longer a need for
hard copies to be kept.
And because you won’t have to ask the client to wait while you find
the relevant information and then call them back, you’re immediately
positioned in their mind as an efficient company that takes them
seriously, knows their history, their requirements and how the work
you are doing for them is progressing.
Document management in a nutshell
It goes without saying that speed of service and customer service is
critical in order to stay ahead of the competition. By working smarter
by using document management you will be several steps ahead
of your competitors that do not have a DMS. And in today’s tough
economic climate this is important: everyone knows that retaining
existing clients is far cheaper than finding new business. So a
small investment can reap great rewards.
No more pressurised official audits
Document management systems also keep industry bodies and
regulators (ICAEW, HMRC, Companies House etc) happy. By law
many accounting records need to be kept on file for years. Having
instant access to records immediately removes the pressure of
official audits. Moreover, keeping records electronically means
there is no risk of loss, fire or flood damage.
• Centralises your information pool
• Integrates easily with your compliance software, with automated
filing enabling you to have all your client information at your
fingertips, boosting client service and satisfaction
• Enables anyone with security clearance to access the system
to retrieve a document in under two seconds, regardless of
the format of the original information
• Allows you to set user access privileges to control who can view
or edit particular documents, thus avoiding the risk of tampering
or intrusion by unauthorised third parties or hackers
• Creates a watertight audit trail for each document so you can
instantly see where a document has gone, when it was edited,
by whom, and who received it. Lets you compare different versions
of a document without having to wade through unwieldy archives
• Saves on valuable storage space - no more bulky, expensive
filing cabinets
• Pulls up information on any of your company’s computers
resulting in a powerful cross-reference tool
• Automates business processes such as purchase invoices: once
they are in the system the information is instantly passed to the
correct people in the chain. No more walking up and down stairs
and leaving files on desks
• Gives you complete electronic off site back up of all your
files for instant disaster recovery should the worst happen
• Is environmentally friendly
www.iris.co.uk/opendocs
How does a Document Management System work?
If document management conjures up visions of an unwieldy system that takes armies
of secretaries to operate, think again.
Scanning
Search and Retrieve
In the best systems, documents can be effortlessly scanned to any
user’s electronic in-tray. Document templates and barcodes can be set
up to deliver documents to pre-determined locations and automatically
indexed to the document management system. This means there is
no chance of paperwork being inaccurately filed, and documents and
correspondence can be quickly routed to the appropriate person
without human intervention or delay.
One critical feature you should look into is the search and retrieval
of documents. This might be broken into four areas within the
search page.
In-tray
The electronic in-tray works in a similar way to an in-tray on a desk,
but with more functionality. The in-tray is a central viewing and filing
area for scanned documents and electronic files such as emails,
web pages, faxes, and even video and audio files.
Functionality within the in-tray allows you to view documents,
add post-it notes and route them to other in-trays on the network.
The system automatically attaches a cover note to the document,
giving a full audit trail.
Look for a supplier with experience of the accountancy sector and
it will be able to set up an in-tray that delivers mail to an electronic
Post Room. This allows users to access their post even remotely
over the Internet or VPN.
Indexing/filing
For example:
• Primary Search allows the user to select from a drop-down list
of indexed words and cross reference queries, such as client
name, document type, date
• Quick Search allows any key word to be entered and searched
across all indexes or even notes attached to documents
• Text Search allows you to search the content of any document
and scanned images. The latest solutions include a powerful OCR
engine that strips out all text and indexes automatically. This is
especially valuable for lengthy documents that, in the old days,
would have taken ages to wade through to find the relevant section
• Highly effective document management systems such as Invu allow
you to add document management functionality to your existing
application with no extra programming. With the Invu link there is
no need to open up multiple applications; you can scan, index and
save documents simply by using your own familiar user interface
without needing to learn a new program
Continued...
Indexing and filing can be done directly from the in-tray or from within
Microsoft Office, Internet Explorer, Microsoft Outlook or your own
business application if the system has the right functionality, via a
simple ‘Export to the DM system’ tool bar. A selection of drop-down
index fields to attach to the document makes filing simple and easy.
This reduces the element of misfiling due to human error. Some
systems allow client names and codes to be imported directly into
a drop-down index field from within your current CRM database.
Where compliance software is being used, filing takes place
automatically and needs no input from the user.
www.iris.co.uk/opendocs
Integration with your existing systems
Customisable
The document management system simply sits alongside your existing
systems. Most are so fast and easy to operate that anyone can master
them. Look for a simple ‘point and click’ Windows style interface which
is designed to integrate seamlessly with your existing IT network.
Anyone that can use a computer and a simple scanner can learn
to use a DMS in minutes.
Because no two accountancy practices are the same, a good system
can be tailored to suit your individual organisation. For example,
workflow procedures can be set to automate authorisation tasks
according to the unique procedures of your particular firm.
The latest scanners are lightning-fast too - much like state-of-the-art
photocopiers - and multi-functional devices will seamlessly link with any
quality DMS. And of course, any information that comes into your office
electronically can be instantly filed in one centralised, secure and easily
accessible place.
No risk of error
Document management systems work alongside practice software
packages like IRIS, and with any Windows-based accounting software
such as Sage, Pegasus and IRIS Exchequer, plus integrate fully with
back office systems.
In today’s competitive business environment, the accountancy
practice that demonstrates it is in control of its communications
and client services is the business that will prosper.
Those that just ‘get by’ will fall by the wayside. Time-consuming
administration used to be par-for-the-course when everyone was
doing paper-based filing. But more and more accountants now
recognise the business benefits of document management.
For any forward-thinking business to overlook this innovation especially when it costs so little to run - could be disastrous.
The result is that output from multiple sources can be electronically
filed within the one system. Version control ensures that documents are
always up to date and there is no risk of error or confusion over which
version is correct. And because there is always an audit trail, you know
instantly who has been working on a particular document, and when
and what changes were made.
Confidential and password protected
Professional document management systems also carry security
benefits. Confidential documents are filed securely and can only be
accessed by those with user rights and passwords. There is no risk
of tampering or intrusion by unauthorised third parties or hackers.
And, as mentioned before, all your data can be backed up and stored
remotely in case of disaster - an invaluable way of ensuring that the
critical information and knowledge that make up the intangible assets
of your company are protected.
A small number of document management providers also offer a
back up service to complement their product. Choose an online
service, as this is easier, more robust, and more cost-effective than
manual back up to tape or disc. This is an indispensable service for
any practice that relies on the continued safety and security of its data.
Efficient remote working
With more staff working from home, or on site during audits, efficient
remote access to critical information is essential. While you may
have had access to information stored on your server, documents
that were stored conventionally would have been inaccessible.
A document management system, integrated with your compliance
software, is a powerful tool that lets authorised users access all
information securely from anywhere in the world, at any time. This is
invaluable if you want to lay your hands on a vital piece of information,
but don’t want to waste valuable time travelling back to base to do so.
www.iris.co.uk/opendocs
Why can’t staff scan and save documents on a server?
No doubt numerous folders and client files used on a daily basis already exist on your company’s
server. But, despite having a central repository, information is also stored all over the place: on
desks, in filing cabinets, in racks and lever arch files, in applications, on computers as PDFs and
attachments, in personal inboxes, Microsoft Outlook folders, Microsoft Word and Microsoft Excel
files, in C drive folders within folders.
Documents stored in what is a logical and obvious location to one
person are often hard to find or completely invisible to other
colleagues.
While many accountancy firms have now started to scan their incoming
post and actively encourage their staff to file documents logically, it
does not take long before they start to lose track of the masses of
daily information received. Documents are indexed or filed incorrectly,
returned to the wrong location, not returned to the server, or left
without trace on a local hard drive.
Retrieval of documents is also fast and easy with documents being
located by a search on relevant key words, similar to searching on
Google. The best systems come with sophisticated search tools which
find the document and place it on your desktop - instantly. No more
hit and miss searches, no more waiting and no more doubts about
whether you have the right document or not. The system shows
you a thumbnail image and where linked to a practice management
system allows you to access all of a client’s documents, so you can
quickly see that you have sourced the right one.
Compliance and legal admissibility
Limitations of Windows Explorer
Even if staff are sufficiently disciplined to file and retrieve information
accurately, they are likely to be using Microsoft Windows Explorer
with its folder and sub-folder system of archiving to find documents.
However, this means multiple mouse clicks are needed to drill-down
to the right folder and file. Moreover the person creating the document
has to do a similar number of mouse clicks to store it in the first place.
While the Windows Search facility can be used to locate files this is
not the fastest tool and provides no automatic preview function
enabling you to see exactly which file you are retrieving.
One critical difference between DIY electronic filing, as opposed to
document management, concerns the ‘evidential weight’ of evidence
that may be used in legal disputes. BSI DISC PD0008 is the current
British Standard document relating to the ‘Legal Admissibility and
Evidential Weight of Information Stored Electronically’. (See also
HMRC Tax Bulletin 37). The key requirement is to ensure that
documents have a proven and clearly documented history (such
as when they were created, by whom, whether they have since
been edited, who has accessed the document, and when).
Another problem arises when several versions of the same document
or file exist on different machines on the network or in different
directories. Which is the most up to date version? And how much
disk space is being wasted by storing multiple versions?
A professional document management system will include automatic
creation of document audit trails, with an un-editable history of every
document that has been created and saved. There is no better way
to prove that your company’s records have been scanned, stored
and managed with ‘due care and diligence’.
Good document management: the critical difference
Still unsure? Ask these questions
In the same way that a program like Microsoft Word automates word
processing tasks, document management automates the routing and
filing of documents. It sits silently in the background behind other
software applications, but once it receives a document, never lets it
out of its sight.
• How much time does your business spend on filing? How much
space does it take up? Have you ever been faced with lost files?
Or confusion over different versions of the ‘same’ document?
Automated filing of reports and letters could help solve this
The system can automatically file every document in your business
that is generated via your compliance software, including company
secretarial documents, tax returns, and final accounts. It always
knows exactly where each item is and what has happened to it.
The documents are filed while they are being worked on,
removing the need for users to remember to do this.
• Have you ever had to call clients back because you could not find
a critical document or transaction? Have you ever been working
remotely and had to call into the office and wait while someone else
sourced a document for you? Using a DMS will mean you have all
your client information at your fingertips any time, anywhere: calls,
emails, workflow - and how much they owe you
• Do you have a system that files documents, letters, emails and
transactions with each client into one instantly accessible file?
Have you ever felt the pressure of gathering together data for
official audits or peer reviews? A DMS will keep all client documents
in one place, plus provide an audit trail of communication
www.iris.co.uk/opendocs
How much money will we save?
Hard copy filing is expensive in terms of time - statistics show that a single document can cost as
much as £15 to file*. When you consider how many documents get filed every day in each of your
offices, the cost soon mounts up.
Conventional filing is also expensive in terms of the space it takes
up. (A filing cabinet costs a company an average of £500 a year
in floor space rental costs alone*.) And even if you already store
information electronically, some documents are ‘not found on the
system’, corrupted, or no one can remember where they were filed.
Statistics show that, on average, staff spend 10% of their time looking
for information*. Unbelievably, that equates to nearly four hours a
week - half a day’s work wasted on hunting for information just to
allow people to do their jobs properly.
Consider if one of your employees, costing you £20 per hour, spends
five minutes on each paper document he or she handles in a day.
Even if they handle only 20 documents per day you would save 22
hours of their time per month, which would be available for other
income-producing work. Even if you are able to bill the time saved
at only, say, £50 per hour, you would have additional revenue of
£1,100 per month per employee.
The savings could mount into tens of thousands of pounds each
year. And remember, these savings are then available to invest
in your business to create even bigger profits.
Your reputation?
These days there are more official rules and regulations than ever.
Accountancy practices are not simply expected to comply with the
ethos of these official bodies, but also with the specifics of internal
procedures such as the handling of accounts records and audit
documentation.
At best, an official audit can result in days of additional administrative
work. At worst, you run the risk of being fined, losing your clients and
tarnishing your reputation as an organisation that takes its business
seriously.
All of this is stressful, costly and time-consuming, and it’s not what
you’re in business for.
How much is a DMS worth?
Here are some of the benefits that document management can
bring to your business:
• The latest generation of document management solutions are
easier to use and more cost-effective than ever before, with
full training available
* Source: www.gartner.com
• Installation and training are straightforward
Client value?
• Payback is typically six to 12 months
The pace of our working environment is getting faster as businesses
try to keep up with increasing client expectations and the pressures
of immediacy.
Clients want information, guidance and answers to queries now, and
they’ll let you know the minute they’re dissatisfied. As a service-based
business, you simply can't afford not to keep up with these demands.
• Fast information retrieval time maximises your working time
• Productivity is improved, giving you a competitive edge
• Storage costs are reduced and office space can be used
more efficiently
• Sharing of information is more effective and efficient
And when it’s customer service that separates the good from the bad,
you don’t just risk losing existing customers if your information retrieval
isn’t up to speed - you risk missing out on new business too. Negative
word of mouth spreads even faster than positive.
• Remote access for off site working
• Easy compliance with both internal and external
operating procedures
Continued...
www.iris.co.uk/opendocs
How much does it cost?
Soft cost-savings
A good DMS costs less than you think. Once the preserve of large
corporations, prices have come down so much that the technology is
now accessible to small and medium-sized practices at an affordable
price: as mentioned earlier some document management systems
cost less than £1 per user per day to run*.
• Productivity - a conservative benchmark to use, in our experience,
is saving an hour per day per person^. Multiply that by staff effective
rates to compute a good working payback estimate. Even with
conservative estimates, a multi-office firm can gain full payback
within a year from productivity gains alone
Compare this with the huge cost implications of chasing up
paper-based files, cabinet storage costs and the administration of
filing the information in the first place. Compare it with the implications
of losing business because you are not perceived to be as efficient
and on the ball as your competitors. And compare it with the time
you usually spend on official audits, not to mention the risk of fines
because certain information may not tie up.
• Customer satisfaction - immediate response on the screen to client
calls improves satisfaction levels because clients equate immediate
service with high value. With an electronic filing system, it takes only
a few clicks to access the client’s digital folder which, for example,
allows you to email a report or tax return to the client. Near
instantaneous secure distribution of documents makes clients
stand up and take notice
Then there’s always the risk of a disaster. If you were to lose all your
paper-based information through fire, flood or malicious damage, or
if someone were to hack into your network or a virus play havoc with
your data, what would be the implications in terms of lost business?
* Based on a typical ten user Invu license, including 12 months InvuCare support.
Other cost-saving benefits
Hard cost-savings
• Copier and printer costs - reduce your investment in
printing/copying equipment and the labour to operate them
• Paper production - minimise your costs by emailing
electronic copies
• Information sharing - empower clients to retrieve their own
documents from customised private client sites. For example, if
a client needs a copy of his tax return for a loan application, he
can retrieve it from his secure file drawer on your website and
then email it to his loan officer. Document management also
helps validate the accuracy and integrity of financial data and
improve reporting capabilities
• Security and disaster recovery - secure distribution of electronic
information with 128-bit encryption. Protect your knowledge base
with back up/restore functionality. Archive files off site as needed
^ Figures taken from the Invu/YouGov Research July 2008
• Physical storage - convert file rooms into productive revenue
generating space and reduce off-site storage costs as well
• Postage/delivery charges - email your electronic documents.
Eliminate those expensive mail and courier delivery charges
• Back up and disaster - eliminate the micro-filming and/or
copying costs and expensive archival storage for your
customer documents and work papers
Increased income opportunities
• Streamlined reviews, compilations, and audits lead to increased
partner and staff productivity. More billable hours and higher
realisation rates can be achieved simply because the document
management system you employ ‘automates the mundane’ business
activities. It is these inconveniences - five minutes here, ten minutes
there - which silently rob your fee earning staff and your business
of hundreds of billable hours throughout the year
For around £1 per user per day you get a system that brings
enormous benefits to your business.
www.iris.co.uk/opendocs
What software, equipment and support will we need?
Whatever your document management requirements, you can expect a bespoke solution
from a wide range of options.
You need to consider and discuss with
potential vendors issues such as:
Ensure your DMS can store any type of file
• Do you have stand-alone computers, or is your office
environment networked?
• Would your business benefit from workflow management?
All electronic file formats should be accepted by the archive, including
emails, Microsoft Word, Microsoft Excel, PDFs, TIFFs, HTML web
pages, and WAV files (electronic dictation). All Microsoft Office
products can have an ‘export to DM’ button.
• Do you have remote workers that need Internet or Intranet
portal access to the system?
Emails with their attachments can be exported to the archive,
automatically capturing key field data such as who the email is
from, the subject and original date received.
• Do you want control over user access privileges, so you
control who can view or edit particular documents?
Remote access?
• What kind of images do you need to import into the system?
• Which other teams/clients/consultants will require access
to your documents?
• What other applications (e.g. IRIS, Micosoft Windows,
Microsoft Access) hold data and would benefit from
integration into the system? And, crucially, will the
system integrate with your business critical compliance
and practice management software?
What type of scanners?
This depends on the volume and type of documents to be scanned.
Multi-function copiers are good if lots of people need to scan.
More usually accountants usually designate a member of staff
to scan incoming post, and start off with a desktop scanner
attached to a workstation.
These start from under £500 and can scan A4 batches of up to 25
pages per minute (ppm), duplex (both sides), in colour or B&W.
Larger, faster models can process over 90ppm with advanced
straight paper paths that detect paper clips and staples, and
can even scan continuous computer paper and till receipts.
Before you decide on which DMS is right for your business, consider
whether you need remote access to your archive via a VPN or by using
a web browser such as Internet Explorer or Firefox. The system should
also give you remote access to your electronic in-tray so you can
review documents, such as incoming post, that have not yet been filed.
What storage and hard disk space?
With the ability to store up to 35,000 documents onto 1GB of hard
drive space, you can search millions of records on your server within
seconds. And you’ll get some of your office space back because
there is no longer any need to file hard copies.
Moreover, as the contents of a typical four-drawer filing cabinet will
fit onto a single CD why not consider a rolling programme of scanning
existing hard copy files onto CD or DVD if space is an issue?
Licensing agreements?
Licensing of document management systems is usually based on
a named user. Most systems can be purchased as a single user
license and can be extended up to an unlimited user license. Ask
about additional modules available to deliver a solution that fits your
existing business, without having to change your work processes.
www.iris.co.uk/opendocs
How easy is a DMS to implement?
Ease of implementation is a critical issue. Moving towards a paperless environment presents a major
culture shock for most team members. Therefore, it is important to involve every member of staff in
discussions and decision making right from the start.
Once you decide to remove paper from your operations everyone must
be committed to the system, otherwise chaos ensues. It takes only one
person to derail your document management strategy so it is vital to
get everyone to ‘buy-in’ early and to reinforce the benefits and
successful experiences of your staff frequently throughout the first
few months of use.
One thing must be made clear from the start - no one in the firm whether staff or partner - can have their own version of the system.
Everyone must adhere to the agreed common procedures - otherwise
the whole initiative will fail.
Where do you start?
Let’s begin by considering the externally generated information
and documents that enter your practice.
Incoming post
Create a procedure manual for staff
Clear instructions need to be given to front office staff as to what
should be scanned, and a manual produced detailing procedures for
handling the day-to-day workload of the practice.
Keep this manual short, simple, easy to use and in bullet-point form
otherwise it will neither be read nor referred to. It needs to be fool-proof
so that even a temp covering for illness or holidays can read it and
follow instructions without fear of mistakes.
Procedures should cover areas of activity such as:
• Your firm’s final accounts processing as well as processing
of client data
• Practice management activity including time recording and fees
• VAT returns prepared in-house for clients
In many instances, post arrives and is opened either by a receptionist
or admin manager, or in some cases by a partner. It may then be
delivered to a senior manager who tries to identify the staff member
to pass it to.
The move to less paper begins when inbound correspondence is
scanned and the document (now in a TIFF or PDF format) is saved
automatically by the document management software. For example,
a client folder can be selected from a drop-down list and the scanned
document automatically allocated to it.
Outgoing post
With outgoing post letters are likely to be created in Microsoft Word,
with the original file saved in digital form. But there will occasionally
be attachments to consider. For example some returns are still done
manually off line, and will comprise a basic tax return plus supporting
pages such as income from property, self employment and capital
gains tax. In addition supporting schedules can also be produced.
• Audit work programs, including client papers, lead schedules,
review, disclosure checklists etc
• Payroll function, both for clients on a bureau basis, and for
your practice staff
Past files and documents?
A key issue to consider is what to do about existing files in storage
and your current paper-based files.
The best option depends on your space requirements, time and costs.
You can keep the documents as they are, or convert some or all of
them to electronic files. Old files can be sent to a specialist archiving
bureau which will scan the documents and burn them to CD. The
originals can then be shredded.
Most practices scan only the most recent year’s files. Then a line is
drawn and the practice goes paperless from then on, but remember
the sooner you start, the quicker you’ll see positive results.
Many enclosures such as accounts and tax returns are likely to have
been produced using software and the output can be sent to a PDF file
and saved digitally. Where an enclosure is based on a hard copy, it can
simply be scanned and filed into the document management system.
In some systems, such as IRIS, automated reports, such as final tax
returns and accounts, and letters are automatically generated and then
emailed to the client. The running of the report and the email are then
logged in the system.
Corporation Tax returns with tax computations can also run to many
pages of printout. The same principles apply to these returns.
www.iris.co.uk/opendocs
Conclusion
To recap, the best document management systems allow information to be captured from multiple
sources, streamline business processes, reduce the time spent searching for documents, reduce
day-to-day administration, allow you to access mission critical data remotely, and enable you to
offer improved client service.
Not only will these benefits help make your practice more agile
and dynamic but they will also add to your bottom line in terms
of increasing billable hours and profit.
The latest document management systems are easy to use, easier
to master and cost as little as £1 per user per day to run. They can
be installed quickly with minimum disruption to your business. They
run seamlessly alongside your existing practice management and
compliance systems, with no complicated interface required. And
anything can be stored in the system - electronic data, your entire
filing cabinet contents, even audio and DVD.
As our enthusiastic accountant customers will tell you, document
management is an investment that - like your computer network,
email and Internet usage - is no longer an optional add-on. It is
an essential part of 21st century business for accountancy
practices of all sizes.
Once you’ve seen the benefits for yourself, you will wonder
how you ever managed without it.
IRIS Accountancy Practice Solutions is a trading name of IRIS Software Ltd which is part of the IRIS Group. IRIS is a trade mark. © IRIS Software Ltd 07/10. All rights reserved.
www.iris.co.uk/opendocs