and the reasons to stop waiting and start saving real money.
by rick telberg
special for hp
august 2005
accountants in firms of all sizes and in companies of all types are fast overhauling their offices and their working procedures to cut down on paper and go digital.
the path is fraught with complexity and hazards. but it’s getting easier all the time. consolidation among tax, accounting and financial software companies is leading to better integrated applications. display monitors, multi-function printer-scanners, and new storage devices are packing more bang for the buck than ever. “it’s amazing. all sizes of firms are responding and they are succeeding,” said susan sandler, editor of the accounting office management and administration report, published by new york-based ioma, a unit of bna inc.
“it’s a myth,” she said, studying fresh survey data she had gathered, “that going paperless is just for the bigger firms. the fact is, anybody can do it, if they do it right.”
research from infotech partners north america and the association for accounting administration, for instance, found the trend to paperless is only accelerating. their study found a 27 percent increase in the use of on-screen review for tax production. three-quarters of firms store tax returns in digital format, and almost as many use their intranet to store and share in-house information.
so what’s the right way to do it?
1. gain the complete commitment of the entire office. the lives and working habits of every staffer may change in some way. and any one of them can become a roadblock.
2. break down and study current business processes. going paperless requires a tough and honest self-appraisal of how your office works – and where it doesn’t. attack the task like a business process improvement consulting project.
3. plan, plan, plan. allow a good six months to get fully informed about your internal processes and the hardware and software you’ll need.
4. implement in stages. some firms start with the tax department, because the software there is already largely digitizing the work. but allow a full year, at least, to roll it out firm wide.
5. change and communicate. in some cases, clients may notice a difference. you’re actually modernizing your business, and they usually appreciate that. but don’t forget the small touches – like personally delivering the printed-out, full-color tax return or financial statements in a premium-quality report cover or binder.
6. don’t expect a quick payoff. considering the first year is one of planning and implementation, and the second year is one of working out the kinks, you may not feel fully comfortable with the whole thing until the third year.
7. turn it into a business. now that you’ve done it for your office, going paperless is an expertise you can take to your clients. let them see what you’ve done, how smoothly you operate, how up-to-date you are. there’s hardly a single client who couldn’t benefit from your new-found know-how.
accountants told sandler they found their biggest benefits in real savings — saving time in finding things, saving space in throwing out file cabinets, and maybe even saving rent with the need for less space, or the chance to add more staff. one accountant figured his office saved 800 square feet in file storage, allowing his firm to bring on three more staffers.
so it’s worth it. and it’s getting easier all the time. but it’s still a shock to the office ecosystem. sandler said “firms have lost partners over this.”