In the age of Iphones, Ipads, instant messaging, text messaging, email, video streaming, cloud computing etc. our society demands information in real time. Most of our children have grown up during this evolution. So the need to access data anytime, anywhere is not just a convenience it is expected and considered a critical business function.
Our firm began the paperless journey in 2005 primarily to address a few areas of concern as follows: efficiency, client service and disaster recovery. Before we began the process we identified these as the key areas that we would benefit most from our efforts and then began researching solutions. Your needs may vary based upon your business type and size, but the overall benefits of the paperless concept are relatively standard.
For our firm the first area that we felt we wanted to address was our accounting and auditing engagements. We chose to focus on these activities because doing so actually touched upon each of our areas of concern.
Before paperless, the process involved an inordinate amount of paper required for each engagement including copies of client documents, checklists and worksheets. Each time we went to a client site we would lug in large briefcases of paper and leave with even more. Sometimes we even had a trunk full of paper! Then all of this information would be collated and manually referenced with tick marks and page references: an "accounting" work of art!
When a client requested a historical workpaper we would first have to determine where the client binder was being stored, (on site in our offices or in the offsite storage units rented to house all our paper). We would then have to dig thru the binders, take a copy out and either mail or fax the document to the client. The response time was usually more than a day depending upon the location of the files and who was available to retrieve it.
The process from start to finish of the audit and accounting engagements was labor intensive and inefficient. Even more disconcerting, although we had all this paper, we had only one copy of the client workpapers in our storage. What happened if documents were lost or damaged by fire or flood?
Fast forward six years…
Efficiency: We no longer go to a client with a large briefcase of paper but simply our laptops. The workpapers and data are electronically organized and the days of staff spending hours at a copy machine, red pencils, tick marks and the droning sound of an adding machine are history.
Client Service: Today if a client calls requesting information the data is usually available within an hour or sooner, (minutes even) depending upon where we are. We can not only transmit the data quickly but also securely, (there are no longer workpapers sitting out on a general fax machine). We can now satisfy the need and expectation of clients to access data anytime, anywhere.
Data Security: Most of our data resides in electronic format on our file servers that are backed up daily and archived offsite. We retain multiple copies of the backup and have built redundancy in the storage of the data. All client data is required to be kept in an encrypted format and is to be removed from the laptops once we are back in the office.
Our engagements have become more efficient, our client service enhanced and we can sleep better at night knowing that if a disaster were to hit our business would not experience a major disruption. And, as time does actually equal money; we are saving in labor hours as well.
So what does this mean for your business? Identify the areas that concern you the most and design your process around that. Some people think that getting a scanner is all that is required to go paperless. Actually, a scanner is only one component of the entire process. In my opinion, the most important part of the process is making sure you have a good disaster recovery plan that is tested on a regular basis. As for hardware and software requirements, I suggest the following:
1) Scanner - depending upon the volume of paper you will digitize, I suggest a production level scanner with a sufficient scanning tray to handle stacks of documents.
2) Document storage - also depending upon the volume of paper you will digitize, I suggest you purchase a server with enough capacity and redundancy built in to handle five times your current storage requirements. We were pleasantly surprised as to how little space our data required if they were stored in Adobe format.
3) Backup - have multiple backup media and build redundancy into the process. These days utilizing online backup services such as Mozy, Iron Mountain and others is something you should seriously consider. The key is to not rely on just one form of media and test your process regularly.
4) Document management software - depending upon your process, it is a good idea to consider some form of document management software to organize and retrieve your data. Not only will it be easier to find but most document management software allows you to build in an archive date to remove data from your system based upon your record retention policy. There are many systems out there and some are industry specific.
5) Virus software - if you make the leap to digital you certainly want to make sure your data is virus free. Depending upon the size of your business an enterprise version of the virus software might best suite your needs.
6) Network Firewall - the more data that is accessible in digital format the more important it will be to keep that data safe from outsiders. Invest in a good network firewall and spend the time properly configuring it for your business. Appliances such as SonicWall and Cisco offer reasonably priced options with excellent customer support.
7) Remote access - what good is all this data if you need to be in the office to get to it? Look into software that will allow you to remotely access your data. If you have a mobile workforce this will enhance productivity and quality of life.
8) Adobe Software - we utilize Adobe Standard as one of our main tools. This version allows you greater flexibility with your documents including one of my favorite features which is the ability to type into an existing Adobe document (filling in forms being my favorite).
As you can see there are many things to consider as you move to a paperless (or more likely less paper) environment. The key is to remember that it is a process that involves research and planning. I can assure you that once you have made the leap you will be asking yourself why you didn't do it sooner. Pavento, Ratcliffe, Renzi & Co., LLC is available for guidance on developing a paperless system.
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