The Paperless Accounting Office

Source: Practical Accountant, December 2004.

What it can do:

• Increase productivity—more work from the same staff, or increase billable time
• Cut costs by cutting storage space, printing, mailing, copying
• When a client calls, the accountant can respond without having to call back later
• Less risk—if proper security is utilized, paperless is safer—(avoids risk of physical damage to files from fires, flood, etc.)

Challenges:

• Single-office firms can’t phase in as easily, but it can be done* (requires running two systems during the phase-in period); multi-office firms can phase in one office at a time
• Define what has to be scanned as narrowly as possible; otherwise, you may increase the amount of litter and chaos
• Should access to files be restricted?
• Determine a systematic process of organizing documents, e.g., whether information in a particular file has usefulness for other clients
• Avoid trying to configure the technology to accommodate old processes;  the processes may have to be changed
• Should scanning be done centrally or should each department have a scanner? Should everyone have a dual monitor? Beware of ruining scanners by failing to remove staples and paper clips
• Determine storage needs. More will be required than before
• Consider using an ASP. (reduces management requirements and increases security)
• Decide what to do with old documents (return to clients or destroy after a period of time)

*Case study: A 10-person firm phased in its paperless office system over three years. In the first year it scanned documents on a test basis; in the second year it scanned all documents, but continued to print reports; and in the third year it printed scanned documents for review, then discarded them.

For more, see Practical Accountant, December 2004, p. 46, or http://www.webcpa.com/article.cfm?articleid=9608&;pg=pracacc