Document management is many things, and operates at many levels from entry level, file folder and file cabinet approaches to sophisticated Electronic Content Management (ECM) applications. Document management systems are the repository of working, live files like Excel spreadsheets and final published or archive documents. Components of Document Management include:

Document management applications can be installed locally or be completely hosted off premise in a SaaS (Software as a Service) model. We cover the key principles of Document Management at www.totallypaperless.com. For CPAs in public practice, the following players are key to consider: 

·                    Acct1st EDRMS
·                    Doc-It DM
·                    CCH ProSystem fx Document
·                    Conarc iChannel
·                    Interwoven Worksite
·                    Thomson FileCabinet CS
·                    Thomson GoFileRoom ES 

Some firms believe themselves to be paperless if they are simply creating PDF documents at the end of the tax process or are scanning in documents to convert them from paper to digital format. You do in fact convert the live tax information to the final, published, archive tax return when creating the final “printed” tax return and efiling file. While this reduces space and potential time to retrieve, your firm will miss most of the benefits of the systems above. Very simple file cabinet products include: 

·                    ARKWorks
·                    eFileCabinet
·                    Lacerte DMS 

To handle 1040 Workpaper preparation, the leading products include: 

·                    1040SCAN by SurePrep
·                    GruntWorx by Copanion
·                    CCH Scan
·                    Thomson TaxSort
·                    Thomson UltraTax 1040 Workpapers 

Some firms believe that if they have an engagement manager, they are paperless. While these products greatly improve audit efficiencies and can be used like a document management system, the key focus of these products are on working with active or live documents. The final workpaper is the published or archive version of the client product. Key engagement products include: 

·                    AverQ
·                    Conexxus
·                    CaseWare Working Papers
·                    CCH ProSystem fx Engagement
·                    Thomson Engagement CS
·                    Thomson Engagement ES 

Finally to control and manage your workflow, there are some products in this category as well: 

·                    FirmFlow
·                    MetaStorm
·                    XCM 

To comply with the law in some states, you need to use portals to deliver documents rather than emailing them. If you don’t use a portal product, you could use a file transfer product. Examples of portals or file transfer products include: 

·                    CCH ProSystem fx Client Portal
·                    CPA Secure
·                    LeapFILE
·                    ShareFile
·                    Thomson NetClient CS 

There is clearly evolution occurring in the document management market. The most notable evolution is the development of SaaS products. For CPAs in public practice wanting hosted paperless applications, there are a number of products that allow you to run your firm completely through a browser on a SaaS service, including Thomson GoFileRoom ES, AverQ, Conexxus, 1040SCAN, and GruntWorx. As a side note, there are also applications like accounts payable handling Bill.com or QuickBooks integrated SmartVault.com for your client or firm’s paperless needs. 

What do you need to do that will make a difference for your firm? Consider where you would like to be from a paperless perspective, and improve the areas where your firm has been deficient. Common issues in implementing paperless systems include: 

1.                  Inconsistent and inefficient procedures – look for steps to eliminate or reduce
2.                  Inconsistent naming conventions
3.                  Structuring workpapers and documents in a similar fashion – use updated,
            firm-wide templates
4.                  Lack of training
5.                  Improper setup of scanners, multi-function copiers, multi-function printers, monitors
6.                  Need for two or three monitors. Wide screen 22” and above are preferable
7.                  Proper off-site backup
8.                  Proper disposal of records and testing of records retention policy
9.                  Allowing certain shareholders or partners to do as they please, ignoring all procedures
            and disrupting all others. It is your business, so you can do what you’d like, but these
            actions are probably costing you take home revenue
10.              Trying to get by on insufficient computer power 

Document management is not a magic bullet that solves procedural or paper handling issues.    However, it is a tool that when used effectively can provide better client service, operational efficiencies, and the ability to work less hours.