Canopy recently surveyed more than 150 accounting professionals about the ways they handled their document management. The results clearly showed inefficient document management is a big problem for most accounting firms.
In the last several years, many accounting firms have gone from being entirely paper-based to moving to digital document management. But a paperless firm has its own difficulties, often with a different system for every function.
For example, they may have one for document sharing, a client portal, a billing system, and so on. As a result, accountants often find themselves toggling between applications and spending too much time searching for the information they need.
Accountants suffer lower productivity without a holistic internal/external document management solution
Even finding the right documents when needed is not a simple task for most accountants. Our survey found that 83% of advisory accounting professionals say looking for the right document is a bigger issue than clients not showing up for appointments while 79% say they spend too much time tracking down files inside their firm. On top of that, 69% of accountants say they spend too much time gathering documents from their clients.
But accountants realize this problem and most (79%) want a better solution than they currently have with 47% reporting that their current document management strategy is a broken process. In addition, 76% use separate systems for client and coworker documents, but in reality, 81% want those to be on one platform.
Of those that use one document management platform, centralizing all client information—like eDocuments, billing info, payroll documents, cashflow info, etc.—86% say it helps them operate more efficiently.
These numbers reveal very real issues that firms are experiencing around their current systems. On average, productivity goes up 51% when accountants are able to work on client documents on a shared platform.
Additionally, the survey found that 58% of accountants had accidentally shared the wrong file with a client due to poor communication and storage issues and outlined the top ways to improve document collaboration with clients which are:
- Having a client portal
- Automatic reminders for overdue documents
- The ability for clients to upload from mobile devices
- Automatic requests for documents
- Mobile scanning of documents
Streamlined document management supports remote and hybrid workforces
These concerns only compound the issues currently facing this industry. With a generation of accountants retiring, and many firms struggling to find new talent, being able to lean on effective technology to optimize productivity while improving the client experience and managing documents securely, is paramount.
Interestingly, the survey also found that the locations where files were stored often impacted an accountant's ability to get their work done. The survey found:
- 85% of accountants often need to work on the same document from home and the office
- 71% have experienced delays because they couldn’t access a document that was on the computer of a coworker
- 76% worked on a document only to realize that a coworker was working on a newer version of the same document
- 58% have lost important client information by storing documents locally on their personal computer
- 81% said that the transition to cloud-based software made remote work easier
Simply put, the best solution is a holistic practice management software that eliminates the need to have disparate solutions to solve individual needs within a practice. Practice management solutions are generally cloud-based (Read: easily accessible anywhere) and provide a single point of reference for all of the practice’s mission-critical functions.
Additionally, these platforms generally provide modules for firms to pick and choose the capabilities that work best for their own individual needs. The result is a firm that works better and can serve its clients more efficiently.
Jonathan Timothy is a world traveler, word game enthusiast and family man with a passion for learning new things. He currently is a Product Marketing Manager at Canopy pursuing an MBA degree.
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