How Firms Can Optimize Data Management

By Don Emery, CPA, CA.

Client documents go missing more than we think. In fact, 83% of employees in the accounting profession admit to having had to recreate documents that went missing within their firms’ network. Given they rely on sensitive information such as corporate financials, plans, and structure to adequately deliver client services, and are entrusted to keep this sensitive client information safe, it’s imperative accounting firms have a secure and efficient system to store and easily locate clients’ documents and information.

Efficient document management has always been integral to a firm’s success. However, disruptions to ‘business as usual’ over the past two years have also highlighted a need for agile systems which can flex and adapt to any situation. A recent Forrester report revealed 72% of businesses agree digital document management supports business continuity in unforeseen circumstances. It’s clear firms must develop new ways to make document management more efficient and accurate.

Identify document management pain points

You cannot fix a problem you do not know exists. It’s important to analyze the current document management systems to identify what’s working well, and what needs improving. Assessing a firm’s current systems should be two-fold; an internal assessment, followed by an assessment of external providers.

Ask yourself the following questions to identify pain points:

Do employees spend too much time on managing crucial company documents? Reuploading files (vs. real-time file editing) and time-consuming sorting processes can take excessive amounts of time to deliver value to clients. Document management systems can improve overall employee efficiency.
How often do files go missing and could this be a security issue for your firm? Missing files can cause unnecessary headaches, compliance issues and can be a potential security breach. Efficient document management requires solutions that allow firms to setup and change access groups with full audit trails, can ensure all files are uploaded and easily located quickly. Document security is vital to firms because they deal with sensitive client information. Document management should prioritize data security to prevent data breaches proactively.
Does your current document management system integrate easily with other applications? Firms rely on numerous different providers and systems to perform their daily operations. Document management processes and systems should integrate easily to drive heightened efficiency. An example would be seamlessly integrating your Practice Management workflow into your document management workflow to ensure that CPA at your firm know when a client document has been submitted for review and approval.

The ideal document management vendor should provide solutions that can adapt to your businesses on-going needs and be future-proof to ensure that it supports your growing and evolving Accountancy practice. Avoid system providers who claim to have solutions that fit any industry and that can scale to any degree.

On-premise vs. cloud

The pandemic accelerated the adoption of cloud-based systems, as the cloud provided much-needed flexibility allowing staff to work from any location, enabling business continuity in the face of major disruption. Cloud-based systems also eliminate the need for complex on-site servers, that require ongoing management, additional IT staff, and significant knowledge in the ever-complex world of data security. Plus, cloud solutions offer the advantage of better integration with existing systems and more easily scaling to meet your growing business needs.

On the other hand, if the firm is not ready to adopt entirely cloud based document management on premise systems may present a better option. If the firm decides on premise document management is the current best fit, select a provider that also offers cloud. Providers who enable choice in their deployment options can ensure a smooth and seamless move to cloud when the firm is ready.

Regardless of the current best fit for your firm, select a provider that offers flexibility and scalability in their offerings. This ensures the provider cannot only meet the firm’s needs today but can continue to meet their needs for the future. As firms grow and expand, so do their needs. Evaluating providers with a forward-looking approach can create a longstanding relationship for years to come.

Provide value-added services

Document management should be easy, efficient, and cost-effective – and client files should never go missing. Firms should continuously evaluate their document management systems, from their internal processes to their external providers, and assess where and how their documents are stored. Having the right system in place will mean employees can stop wasting time hunting around for files and instead focus on doing what they do best – providing the best possible service to their clients.

======

Don Emery CPA, CA, is General Manager at Doc.It, IRIS Software Group Americas.