The paperless office: Four years on
Back in 2006 Kevin Salter shared his ‘paperless pointers for accountants in business’ outlining how his practice had reduced wastage and begun to embrace a ‘less paper’ approach. Four years on, he reflects on the progress made.
When we first introduced a document management system the real purpose was to improve efficiency and productivity by storing and retrieving documents electronically. This objective has been met and all correspondence both in and out is now readily to hand at all times. The initial ‘shock’ of not having paper quickly wore off for some, whilst a few still occasionally hanker after the old ways. Importantly, all supplier invoices are now scanned and readily available.
The accounts working papers are now in many cases totally paperless with the use of standardised excel based templates. Any paper based information relating to these (e.g. vehicle additions etc.) is scanned and either embedded into the Excel file or saved as a PDF file. As much as possible is now put into PDF format (e.g. reports from clients’ accounting packages) and software can be used to annotate these electronic files in the same way as if we were writing on paper versions. Where there are still paper based workings, these are scanned at the end of the job. Filing cabinets which were originally bursting at the seams are gradually becoming redundant.
Use of the client portal is become increasingly common. This is a secure area accessible from the firm’s website where electronic files such as tax returns and accounts are uploaded and the client accesses them via the website after logging in with a user name and password.
Continued...
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Tiny takeup
My experience is that the takeup of proper 'paperless office' in the profession is still pretty low.
Part of this is the cultural side of things - the mistrust of technology over paper. This will change, but it's a gradual process.
Government could do more to help - Document Management practitioners such as myself have to refer to a collection of documents and articles - reading the entrails of the 1995 Civil Evidence Act, the ocassional tangential comment in a Tax Bulletin (21 and 37 are particular favourites!), etc so that we can come up with some solid advice for clients. (Only to have everything undone by some 19-year old in an HMRC call centre telling a practice the exact opposite). British Standards are good, but they are not statute.
Document Managmement is also not without its costs. It's one of those things that impacts an entire firm - asking a lot of everyone from the senior partner to the post-room part-timer. The new processes, disciplines, and working habits can all feel very disruptive. (Disruption can be a good thing, but it's still disruption)
The 'office space' argument is not without merit, but only where rents are high enough so that it matters. I've been to a practice where they've told me they just buy old shipping containers and "stick them in the field out back". Even in London I know of firms who are in old Victorian town-house offices with cavernous cellars that give them archive room for YEARS to come.
I feel the most underrated aspect of DM is Business Continuity - your paper files ARE NOT BACKED UP (it's a 'Single Point of Failure' in Risk Management speak). Ignore the 'terrorist bomb/air crash' stuff and just think about water damage from a burst pipe over the Easter break, or loss of client files when an audit manager's car is nicked. If you have electronic images, then the paper just isn't so important any more. You no longer need the paper within arms reach of your desk, you just need the information that was ON that paper and you can back that up as many times as you like.
Talk to any provider of DM software, and they will tell you that their biggest competitor is not another provider, but is the 'do nothing' option. 'Do nothing' is low risk for the IT department, there's always room in the budget for it, and there are no compliance pressures demanding that Document Management be adopted. (Accounts Prep suppliers are a happy bunch at present - why? because XBRL is sounding the death knell for Word Processed accounts)
Document Management can produce HUGE benefits, in terms of reducing error, enabling better client-service, fostering best practice, reducing PI risks, delivering significant disaster recovery benefits, and making information more accessible but the profession as a whole is only just moving out of the 'early adopter' phase.
Discussion Group
By the way - anyone interested in this subject may like to know that AccountingWeb has created a Document Management discussion group.
Come on over!
http://www.accountingweb.co.uk/group/document-management-discussion-group
I hate scanning
We've gradually moved to less & less paper over about 5 years now and yes, we benefit from all the posi aspects listed above, especially space and saving in rental & other costs however what now seems to come way down the list of reasons for switching is the environmental damage and waste connected with using and disposing of paper, manufacture & dumping of ink, toner & plastic and the transport and other facilities needed to get a few dozen words from here to 20 miles away.
Having read n articles & spoken to n other accountants on this topic, apart from lacking the above desire and just not "getting it", the problem is the inward looking "what can we do to stop using paper". You can throw away all but one printer, super-glue the copy button on the copier and stop ordering analysis pads but this is only half the picture ie what about the clients and other contacts that keep sending you the stuff?
We have encouraged clients to communicate electronically, so if they write me a letter I email them back, it's an attitude of mind but after 5 years all but one client is now online with email as their preferred choice.
I agree the pain is HMRC & other essential contacts who keep writing paper to us but when you analyse it most of the information (ie the important stuff) on the paper can result in a tick in a box or a few words in client contact/management software, you just the recycle the hard stuff.
Consequently, there really is not a huge need to scan these days and I've even resorted to sending back a package of client's books & then emailing to say "sorry forgot to copy the XXX documents, when you have a minute can you scan & email them back please?"
Having said all that you can still get backward steps, eg last month we emailed accounts, tax returns and about 5 other documents for 2 companies to one client asking that he print just the few pages we need, sign & scan back. So he prints out the lot, scans every page & emails them back (some twice) all unsigned.
Paperless myth
Despite what I say above I have some sympathy with SS's points. Paper is right up there with the wheel and fire in assisting human development and so trying to rid ourselves of it in a few years or even a generation is self defeating and I'm afraid the mad rush is fuelled as usual by fashion and the must-have bandwaggon.
However, as with so much we produce, consume & throw away these days we have gone too far (I spent last saturday morning going through a month's mail at home and 90% in weight ended up being recycled). So as with any change that is cultural as well as practical, it should happen gradually and in a manageable way and if you end up 70% "less-paper" and that works then why bust a gut to go 5% more?
What if you are a small firm?
My business partner lets his secretary do the scanning once or twice a month and claims to have a paperless office. I suspect documents like statements of account are put straight in the shredder and the scanning is minimised to essentials. It must take as long to scan a document as file it.
My side of the business is me alone. I hate filing and I would hate scanning if I did any. I find most of the documentation I receive is from HMRC and is usually a copy of what's in available online. My lack of filing means I have a pile of paper about 12 inches high per year. I keep looking at this pile and think I should really file that.
I think the best thing to do is to file any letter you have replied to - thats very few and I answer all letters straight away if I can so there is no need to hang on to letters sent to you in case you forget to answer them.
File coding notices and the rest put in a pile and put the pile in a box and after two year put the box in the store and after 6 years dispose of it. Little filing no scanning. Working papers are only copies of whats on your computer so why file it? Scanning reminds me of the army bloke who copied everything before throwing the original away. If you really need a document its easier to go through a pile of paper 12 inches high than to file or scan everything every day.
Sorry if this upsets the professionals but it works for me.