The 3 Areas of Document Management 
 

Area 1: Border Systems - where you and your client interact

Many professional service firms interact rather "manually" with their clients, meaning that they utilize more traditional forms of communication and interaction. For example, driving to a client office in order to pick up accounting information is a normal procedure for many bookkeeping providers. Exchanging data via email or trading documents via facsimile are typical methods of client interaction. But using today's technology and implementing ASP-delivered systems could facilitate a better, more effective way.

When your firm and your clients need to interact using the same applications and data, it makes no sense to be redundant. Why not allow all participants to work in real-time on the required systems? When you use online application models, as delivered by an ASP, you introduce improvements to your ability to work with your clients as well as improving your internal IT landscape. Enabling this border area, where you and your clients interact using shared resources, can greatly improve delivery of client services. You already bear the cost of your IT service, why not extend the resource to your client and at the same time improve your own operating efficiency?

Area 2: Live Information Management

Your PCs and network systems are the lifeblood of the practice. You communicate using these systems, and you produce information using the resident applications and data. These systems are key to your practice internal operations, and can mean the difference between success and failure in producing for your clients. This is the system where the in-progress work gets done, and where the "live" data exists. When looking at the functionality, fault-tolerance, performance, and capability of your systems, you should consider reviewing the potential benefits of the outsourced IT alternative.

Running your systems with an application service provider (ASP) could provide you with the cost- efficiency you need while improving system capability and functionality. Keeping up with technology is difficult and expensive, but the ASP solution might be the way to introduce the features and access your systems need without the traditional cost associated. Hosting services allow you to implement online working models for applications you already have - eliminating the training time and data conversion. The migration can be quite easy, and the benefits to your practice could be tremendous.
Online Application Service is the key...

Area 3: Internal Document Management

Internal document management requires a system for storing, accessing and managing electronic documents. The core of the system is an online document repository that can be organized in a similar way to your paper folder, divided into sections and subsections and contains all your documents, regardless of their origin, including: scanned paper documents, documents generated by your existing systems, Microsoft Word and Excel documents, and any "printable" document (web page, email, etc.).

Document security is extremely important. By using an electronic document management system, you immediately gain the advantage of being able to create duplicate sets of your documents and store them away. An advantage over paper is your ability to control the access to documents. This can be done by limiting users to specific electronic drawers, folders, or even to specific documents within a folder. In addition, a robust document management system can provide you with a complete audit trail of document usage.

Document Management Considerations

Before you fall in love with the concept of "going paperless", you need to fully understand what this really means to your business. First, you must cost- justify the system, and find a way to experience a positive return on the investment in a new system. You must fully understand and acknowledge your direct and indirect costs - in real estate, in personnel, in supplies and materials, and in efficiency.


Is the management of your static information - the file cabinets in your office - really the biggest issue? For most firms, it's a huge issue, but may be one of the most difficult to address. Particularly since many professionals are so accustomed to handling paper files, replacing the paper-file cabinet with an electronic one may represent a monumental cultural adaptation which overshadows the technological advancement. Regardless of the benefits of having an electronic, fully- managed document archive, many firms feel that this is an internal requirement and as such it falls somewhat lower in priority than the dynamic systems. This should be, however, a primary focus of tax and audit practices, whose internal processes are essentially a validation, reporting and archival of information from other businesses. This is where a full-featured document management solution could truly benefit the practice.


The dynamic information - real-time and work in process data - "lives" in the PCs and network systems. These are the systems that are used to produce and exchange business information. Because these are the systems that the personnel and clients interact with, they represent a significant part of the functionality of the business. Most professionals, even those who only nominally recognize the value of technology, can easily recognize the value of keeping their employees productive. When the technology can facilitate information exchange in a timely manner (especially when it eliminates unnecessary travel or other time/expense impacts), the business and the client benefit, and the positive return on the investment is more visible. Electronic document exchange, online application services, and workflow management tools address these business requirements.


Your business probably already spends a significant amount of money on technology. It's time that you really look at that resource as much more than a means to support status quo. Your systems should be workflow and productivity enhancers that improve your efficiency and effectiveness. If you are primarily an audit or tax practice, then a cabinet solution may be the best approach. If you handle any volume of outsourced accounting, then a workflow approach with online applications is the key.