The Next Level of Paperless: Combining Workflow Tools With Document Management
By Joe Harpaz
There is an old saying in the project management world: Better, Faster, Cheaper—you can only pick two. But now, accounting firms no longer need to choose two out of the three—they can manage their internal business processes… better AND faster AND cheaper. Tying automated workflow tools to document management systems is the key.
Clearly, many accounting firms have already seen the advantages of “paperless,” particularly as the sheer number of documents that firms must deal with has exploded in recent years. But all the talk of going paperless is a bit of a misnomer. There will always be documents to manage, even if those documents are electronic instead of paper-based. In fact, with the explosion in email and IM communications and tightened rules and regulations in the post-Arthur Andersen world, there are even more files to manage, documents to complete, T’s to cross and I’s to dot.
Taken separately, workflow processes and document management systems can certainly improve efficiencies for accounting firms. However, marrying workflow tools to document management systems allows accounting firms to compound those benefits by shortening approval times, improving the ability to track problems and standardizing processes and procedures. In addition, the value of combining workflow with document management and creating consistency enables firms to more easily train and retain new hires, increase productivity and minimize concerns that quick turnover can create in the work process.
In a nutshell, workflow systems are designed to ensure that documents are seen and managed in the proper order by each and every professional involved in that particular engagement. Such a system ensures that every matter for each client includes: the basic client engagement information; the correct routing information, so that the specific professional assigned to the engagement reviews the information in the proper order; a list to verify that the preparation and review have been done in a manner consistent with the firm’s policies; and an explanation as to how the matter should be assembled and delivered. Instead of sending ad hoc emails and making last-minute phone calls to people who may not be in their offices, proper workflow will define, automate, standardize and streamline the process. Sophisticated workflow systems allow for real-time tracking, so those involved in the matter can see who is working on what document, what changes have been made and how much else needs to be done. A workflow system can help accounting firms reap benefits by improving productivity, becoming more responsive to clients and lowering operating costs.
As for document management systems, most accounting firms already have one in place. But is it adequate? A good document management system should have several characteristics, including:
· The ability to name and identify files in a consistent manner;
· A system for storing files in such a way that all the professionals at the firm who need to access them can do so, but that those who don’t have security approval cannot;
· An adequate backup system, in case of a fire or natural disaster should strike your headquarters;
· An easily searchable index;
· The ability to integrate emails;
· Ease of importing different formats and files; and
· A system flexible enough to grow and adapt as your firm does.
So, how exactly can combining document management systems and good workflow techniques help your firm? One example is in the filing of the familiar tax return, a process accounting firms are busily at work with this time of year. With many documents and multiple professionals involved in a single engagement that must be completed by a defined deadline, it can be easy for even the most organized of accountants to lose track of the order of business. Has the client sent over all the relevant paperwork yet? Has the engagement partner forwarded everything on to the preparer? Has the preparer input all the data in correctly? Has it all been sent back to the engagement partner in time? Will the client receive all the necessary paperwork once the return has been approved? Will all the relevant taxing agencies get the proper forms? In the midst of the tax season, will all of this be accomplished by April 15? A good workflow/document management system can answer all these questions.
Of course, the benefits of combining workflow processes and document management systems can be expanded beyond tax returns as well. They can also help ensure procedural compliance at your accounting firm. This can be especially helpful as many accounting firms branch out into other client service areas that are broader than the typical audit and tax engagements, for example, the financial services arena. There are a number of rules and compliance procedures that accounting firms must grapple with when they decide to help their clients manage their money. Complying with the so-called “know your customer” rules require getting the proper account forms and identification for clients, verifying that investors who want to sink all their money in options qualify (as evidenced by documentation) as sophisticated investors. And since many accounting firms do not handle the actual investing themselves, but instead rely on institutional brokerage firms for that, there are even more forms that must be circulated between the accountants, the client and the broker. All this often has to be done within a certain timeframe; failing to ensure that all the paperwork is completed in time may mean your firm is out of compliance with various state and federal agencies.
So the benefits are clear—while developing good document management systems and workflow processes separately can save accounting firms time and money, the power of combining the two works exponentially. Accounting firms can use workflow and document management systems to be more productive, standardize review processes, allow for real-time reporting on the status of any given matter and enable firms with multiple offices or employees who work offsite to go “paperless.” They also significantly improve client service and allow for more peace of mind - two things that can’t be measured by any accounting firm.
About Author:
Joe Harpaz is Vice President of Business Development – Immediatech Corporation/GoFileRoom, part of Thomson RIA. For more information, visit http://www.Immediatech.com or email Joe.Harpaz@Thomson.com
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