Not only does reducing paper use save time, space and resources, it's also much more efficient, improving both workflow and document management.
Reduce the clutter
Going paperless isn't about being totally free from paper, though to a large degree less paper will be used. So perhaps 'paperless' office is not completely accurate terminology. In reality, going paperless is more about replacing the paper-based processes that hold a firm back with a method of electronic document management and workflow solution that will carry it forward into the future.
Without realising it, many people have at least made a partial move to a paperless office. If you are a computer user, just take a look at how many messages are stored in your Inbox. Now imagine how much paper would have been generated if they hadn't come to you from cyberspace.
The concept of a 'paperless' office is still relatively new in Asia, but some firms are gradually beginning to seriously consider such a move. Some common reasons why firms have not joined the anti-paper campaign (and saved a few trees along the way) are that they feel they are too busy doing business or other projects or feel that the soft-ware and hardware are too expensive, a myopic view that focuses only on the costs and not the benefits.
Some firms feel the paperless office is too difficult to implement, offers too many confusing choices of software, or simply that their staff are used to working with paper.
The often cited benefits of moving towards a paperless office include less clutter, greater efficiency, less time spent tracking down files, and saving of storage space, not to mention the environmental benefits.
But it is also the case that organisations may be placing themselves in jeopardy without the use of proper work-flow and document-management tools. Lack of documents or proper workflow will cause bottlenecks and misunderstanding of the process. Knowledge not retained in some type of retrievable form may be lost when turnover or a natural disaster occurs.
The benefits of going paperless Defining the benefits is critical in order that a firm's decision makers understand and agree to it. The benefits of implementing a paperless strategy include: significantly reduced need for office space, increased security, better disaster recovery protection, environmental benefits and the fact that firm members can work from remote locations since all client documents can be accessed remotely.
One of the biggest benefits of getting rid of your paper files is the cost savings. If it takes five minutes to retrieve and replace a paper file and an employee works with 10 paper files per day, that's 216 hours a year, equivalent to over five weeks' time, spent walking files around. A system that lets employees find and work with those documents without ever leaving their desks can instantly slash those costs.
Cost savings can also come in the form of printing and the real estate needed to store documents. However, some firms that have gone paperless claim these costs are negligible.
Whatever the case, the savings cost of not having to file paper is a legitimate one. Efficiency improvement is one of the greatest benefits following the move to a paperless environment. Electronic storage enables faster access to documents. Also, since document management applications completely control the organisation logic used in storing documents, there is less time spent training and overseeing staff in the storage process.
Subjective benefits are more difficult to quantify or see immediately. Improved client service value is among the most important benefit. The efficiencies of an electronic document environment translate to faster service, which is of great value to clients. So, you will make money by providing better client service, the payoff for every accounting practitioner.
Another benefit of the paperless office is that its high level of organisation and the full-text search features that are part of most document management solutions make it easy to match a service or issue with documents that have been created for another similar situation. Essentially, services will become 'products' and their supporting documents and workpapers will be reused over and over again. Thus service efficiency and client satisfaction are improved. This 'productisation' process can also aid in the selling process since firms can now be more price competitive while maintaining their profit margins.
It is not easy to get staff to adequately document their interactions with clients, prospects, and others. This is an area in which any firm would want to improve. Although document management tools and paperless office processes will not magically make this happen, it will make it easier to create, edit, and retrieve documents. The easier it is to perform some tasks, the more the tasks will be done, and with less oversight and management.
A move to a paperless office will improve efficiency, make clients more satisfied, grow the firm, and provide other benefits. This improved firm will be a better place to work, making it easier to retain and attract new staff.
Steps to going paperless Of course, any change in established office procedures can be difficult. The importance of entering the process with the right expectations and frame of mind is critical. It will enable your firm to adopt a paperless strategy much faster and more efficiently, and you will more quickly achieve the tremendous benefits. If you simply scan some paper files but don't change anything else, you will obtain only a fraction of the benefits. Here are some issues that you will face and tips to help smooth the process:
Step 1: Total commitment Once the decision to go paperless is made, commitment from everyone involved is vital to the success of the endeavour. Going paperless for your firm doesn't mean doing things exactly as before except for making your paper files electronic. You must also be prepared for changes in your implementation strategy and plans in the event of unforeseen challenges.
Step 2: Analyse your firm's needs List the critical goals you want to accomplish and the features your system must have.
Here are some considerations:
Are you a sole practitioner with no employees and no plan to add any, and just want to scan client files electronically?
Do you need security for certain files?
Do you need scanned documents available via the internet for remote employees or clients?
Do you want (or need) advanced document management features such as version control of your documents, and check-in and check-out document capabilities?
Do you need it to integrate with your practice management system?
(For a total solution, your document management system should integrate with your practice management system.)
Tip: Plan ahead and implement a system that can grow with the future direction of your firm. For instance, you may not need security now, but if you plan to hire more employees, you will need a security feature later.
Selecting the available tools in the marketplace can be confusing, as there are numerous vendors available, so it is important you have fixed in your mind the critical goals you want to achieve.
Step 3: Select a software application and hardware (scanners) Here are some important considerations for software selection:
Ease of use and implementation.
Be careful, don't select an application because it looks easy to use. Recognise that with some training and practice, you may adopt an application that provides more features and benefits.
Cost, be sure that this is relative to the benefits it provides.
Does it integrate with your practice management system?
When selecting a scanner consider capacity, speed and whether or not desktop scanners are also required. Once your firm embraces going paperless, you will certainly be scanning more in volume and types of paper than you can possibly imagine.
It is important to have a high-quality, high-capability scanner as part of your paperless strategy. The cheapest scanner in the market may not be cheap in the long haul.
Consider adding several desktop scanners for certain personnel whose work entails working with a lot of documents. You may see significant improvement in the overall efficiency of your firm's scanning efforts.
If you work with a consultant earlier in the process, be careful: many consultants work only with one particular solution. This does not help you get an objective evaluation of the available alternatives. It may be better to do some investigating on your own first, and then find an expert who works with the particular program you have chosen.
Step 4: Implement the system Once your software and electronic filing system is set up, choose a date, that is, from that point onward, all documents created, or coming into the office must be stored electronically.
Scanning old paper files and moving existing electronic files into the document management system is probably the first task that you can do. It's a huge task and may take one or two years to complete.
Changing mindsets Staff especially must be prepared to change their mindset as to how they will do their work once the decision to become a paperless office has been made. It is not easy giving up the 'habit' of holding paper in hand and reading from it.
CPAs may require more than one monitor on their desk since they will be reading all documents from their computer. For instance, two computer screens, one showing an engagement software program and the other screen showing this year's source documents, would be a convenient setup. Some firms provide preparers with three screens, so one can see at a glance a tax program, source documents and last year's completed audit files and financial statements. Some desks have a fourth screen turned towards clients so they can review their completed work without a printout.
It's not surprising that many clients find the idea of reducing the amount of paperwork they have to file away appealing. You may have to educate some clients about the benefits of receiving financial statements on CD. You should explain that they can bring the CD back each year to have another annual financial statement added to it, and that they can print out a paper copy anytime. Some accountants have made the lure of the CD stronger by also including on it copies of all the paperwork, including filled-in organisers and third-party source documents that the client originally brought in to the office.
Unfortunately, someone will have to scan documents and burn them onto a CD and copy documents. Choose a person in your firm with previous experience making copies of financial statements or who has assembled them. It will be his or her job to scan documents into the firm's computer system and burn CDs. Client financial packets will still be assembled, but in their new form they may comprise only a couple of pages and a CD.
Going paperless is not just scanning documents. A comprehensive paperless strategy involves a document management system that deals with all documents regardless of their source, scanned, emailed, faxed, computer-generated (such as Word documents), and so on.
Decide when you are going to scan in source documents. It's possible, of course, to continue working from paper documents when preparing audit and financial reports even if you're going paperless. You can still check off or highlight data as it is being entered into the system, and then scan in those sheets when the work is finished.
Or, you can scan documents at the start of the preparation process, and electronically check or highlight information as it is entered into your preparation program.
It is advisable to scan documents into the system when they come in, instead of at the end of the preparation process. This can be a real advantage when dealing with complicated files that might involve input from several people.
Don't expect instant results. Even with a systematic approach, implementing the system will take several months, while the benefits may take some years to be fully appreciated. Many companies have found that although the process took work on their part, and wasn't without some hiccups, the answer to the question, 'Was it worth it?' is a resounding 'yes'!
Saving paper saves money Saving costs on buying paper is just the tip of the iceberg. For each sheet of paper used, a firm incurs not only purchasing costs, but also storage, copying, printing, postage, disposal, and recycling, and it adds up. A US study estimates that associated paper costs could be as much as 31 times the purchasing costs (not including labour). So, that ream of paper that you paid US$10 for really could cost up to US$310!
Saving the environment Paper is an office necessity for some essential tasks, but it has an environmental cost. Creating paper from trees requires a lot of natural resources: trees, water, and energy.
It takes more than one and half cups of water to make one sheet of paper.
Over 40 per cent of wood pulp goes towards the production of paper.
Reducing paper use reduces greenhouse gases: 40 reams of paper is like 1.5 acres of pine forest absorbing carbon dioxide for a year.
Calculate the return on investment to decide if is worthwhile for your firm to go paperless. Some of the benefits may be difficult to measure, but it may be helpful to document your perception of the benefits (both subjective and objective).
