What You Need to Know to Go Paperless
By Craig R Erickson, CPA, WISS & Company
Whether companies are looking to reduce on-site storage, eliminate costly off- site storage costs, better organize their data or simply just go green, document management is a necessary tool. An effective document management system (DMS) offers the above items and allows firms to work smarter and more efficiently. Consider the following when implementing a DMS:
Plan
You can’t simply jump into a DMS. A DMS is only as good as the time spent setting up the system to work in a manner that is conducive to smooth operation at your firm. Take the time to plan your migration into a paperless (or less-paper) world. Chart your processes from every area, and re-think whether you need to make adjustments. Remember, how you roll out your DMS is probably not the way it will look 6-12 months from now. Being flexible is a big part of any DMS application. Remain open to suggestions from others in your firm. You might be surprised who has some valuable information or suggestions to better the DMS process.
Establish a Paperless Committee
Creating a paperless committee comprising individuals from all firm areas is also vital to making a smooth transition. Include all levels and areas of expertise; do not make this an IT-only driven project. Meet regularly and develop an action plan with a list of items everyone is responsible for by the next meeting. Hold each committee member accountable for his or her tasks. Continue to meet regularly, even after the DMS is operational. At meetings, discuss what the current issues are and how to manage them from both an IT perspective and from a training perspective, possible changes to the current system to make the DMS work more efficiently and future DMS upgrades.
Invest in Technology
Multi-screens, software, scanners, remote access solutions and upgrades to old desktops and laptops are a few vital keys to the success of a paperless office. The ease with which work is reviewed is one factor that will drive the success of the DMS. If reviewing working papers on screen is too cumbersome, employees will revert to printing out documents in order to review them. The decision as to who gets multi-screen monitors (dual or triple) is becoming easier as the cost of monitors declines. Also, consider purchasing widescreen monitors to utilize the extra screen space. If the technology is there to support the DMS, the staff’s buy-in will follow.
Rely on the Scanned Version
Firms that go paperless often still rely on the paper version of documents. Consider creating a policy that requires all paper documents that are scanned into the system to either be shredded or returned to the client. If you do not keep the paper in house, the electronic copies will be used for reliance. There should also be a policy to ensure that what is being scanned is complete, so that the reliance on the scanned copy can be made. All DMS policies should be documented in the firm’s best practices guide.
Create an Action Plan
Establish a plan to not only go paperless going forward, but also to add pertinent older files from your network drives into the system to centralize all information. Also, create a plan to back-scan pertinent information in your on-site file room and off-site facilities, such as permanent file information. Set reasonable timelines, and stick to your scanning goals. Do not bite off more than you can chew in the beginning. Eliminating on-site file rooms will enable the firm to take back valuable square footage and turn it into productive space. And, by eliminating off-site storage, firms can reduce and eventually eliminate costs with external third-party vendors.
Set and Maintain Retention
An effective DMS will enable files to be assigned a retention life. This retention life should be well documented in your firm’s policies and procedures manuals and should be in line with regulatory requirements. Setting a retention life will also enable the firm to stay current with the files in the DMS. However, if the firm follows its action plan to back-scan documents from its on-site file room and off-site facilities, unnecessary documentation from years past will no longer be needed – alleviating the firm from potential litigious situations.
Consider Other DMS Uses
A DMS does not have to be just a tax or an audit solution. Challenge other departments (marketing, human resource, etc.) to use the DMS. A good DMS can be as flexible as you need it to be.
Consider Workflow Solutions
With the reliance on a DMS and a paperless office, you may want to consider a DMS with a built-in workflow tool, or consider using another vendor for such a tool. As paper documents are no longer being sent from desk to desk, firms are finding it necessary to find solutions that will track the paperless flow electronically. This solution should be web-based or accessible from your network so that employees can track the paperless flow from outside the office.
Use Portals
Offering your clients or potential clients the option to securely transfer files via a secured portal, rather than unsecured email, should be a major factor in deciding which DMS to use. Make sure that the portal solution works well with how you transact your day-to-day client functions.
Training, Training, Training
It is essential with any new major technology endeavor to keep up with training. Offer classes throughout the year, or establish peer groups (or power user group) to teach small groups the basics. Stay current on new version releases, and train staff on those releases. Update your firm’s best practices guide for these technology changes.
Craig R. Erickson, CPA, is a partner at WISS & Company. He can be reached at cerickson@wiss.com or 973-994-9400.
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