3 Accounting Process Improvements For Professional Services Firms

improving accounting processes for professional services firmsFor law firms, engineering consultants and other professional services organizations, the basic accounting process might appear fairly straightforward: Your company is asked to perform certain tasks or functions, and then you invoice your client for those services. But before your accounting department processes an invoice, it needs to be aware of the work that has been completed, and coordinating all of the necessary information is a big headache.

In a professional services context, you’re generally dealing with a document that outlines the scope of work. To produce this document, your company might first conduct a business assessment in order to identify what your customer needs, and then list the labor, time and expenses you plan to use to meet those customer needs. Once this scope of work is ready, the customer has to approve and sign the document.

When the scope of work is in place, your accounting department gets a purchase order from the customer. But before you invoice the customer, you need to know how much of the work has been performed. And that means accessing and tracking a number of separate project documents, such as change order requests and status updates. And depending on the project terms, you might bill the customer incrementally or after all of the work has been completed.

As a result, this sort of accounting process is fairly complex, and especially difficult if your accounting department has paper-based processes or a fairly narrow, specialized accounting software solution.

Adopting a digital document management system (sometimes called “enterprise content management”) has three big advantages when it comes to accounting processes for professional services organizations:

  1. Centralized document storage and workflows: Instead of dividing your business information into different silos — accounting documents, project documents, email, paper contracts, etc. — a document management system gathers all of it into a central workflow repository. This workflow repository contains all of the relevant documents for a client, providing fast, easy access for the accounting department as well as specific individuals involved in that project.
  2. Streamlined collaboration: Since a document management solution allows you to accumulate and collate all of the relevant information for a client or project, it greatly improves the collaboration process between the accounting staff and other key personnel. Everyone is able to collaborate on the same set of electronic documents, sharing and updating the scope of work and other information. This ease of collaboration makes the invoicing process much more efficient.
  3. Automated version control: The concept of version control is vital to any collaboration process. Every time someone makes a change to a file, the digital document management system automatically tracks the history of that document and stores this latest version alongside the original and all previous iterations.Without this version control, it’s all too easy for the collaboration process to break down, with different people working on outdated versions of the document that they’ve saved on local hard drives, resulting in unnecessary confusion, errors and wasted time.

For professional services organizations, the accounting process is often complex, requiring collaboration with different departments and individuals before an invoice goes out to your client. When you use a digital document management system, you’re able to improve efficiency and productivity, due to the way it centralizes your documents, streamlines collaboration and automatically controls versioning. 

Are you ready to learn more about document management for your accounting department? Contact DocuWare today for a free consultation and comprehensive cost-benefit analysis.

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Streamlining Your Accounts Receivable Workflow

streamline accounts receivableNobody’s job description says that their duties include “sorting through stacks of paper to find the information you need to do your job.” But such unproductive tasks often take up a large part of an employee’s day. And that’s especially true in many accounting departments, where the flow of paper invoices and purchase orders is constant.

Moving to an electronic document management system opens the door to increased efficiency for a variety of different accounting processes. Here are two common scenarios in accounts receivable that illustrate how document management improves workflow:

  • Scenario 1: A customer asks for a copy of an invoice
    When a customer calls and asks for a copy of an invoice you’ve sent them, it starts a lengthy process.An accounts receivable employee might tell the customer, “OK, I can help you with that; let me go find your file.” Then they hang up the phone, go to the file cabinet and retrieve the invoice (if it was filed correctly). The employee would then copy the invoice, return the original document to the file cabinet and walk to the fax machine to send it back to the customer.An electronic document management system greatly simplifies this common process. Instead of spending 1o or 15 minutes to pull up an invoice, an employee is able to access and email that file with a click while still on the phone with the customer.Another way to make this even easier for your customers is to provide a digital file cabinet that the customer can access online. The customer is able to go directly to this digital file cabinet, access their account and view every invoice you’ve sent (obviously they can only view their own files and nobody else’s). It’s a simple, effective way to give your customer the information they need at a moment’s notice. And since the information is always available, it may reduce the number of incoming questions for the accounts recei
  • Scenario 2: Collecting on an outstanding invoice
    In a paper-based accounts receivable process, following up on unpaid invoices is like trying to navigate a tortuous maze. Make a little progress, hit a dead end. Retrace steps, make a little progress, hit a dead end.When an employee calls to collect on an invoice, the customer often has a reason for why they haven’t paid, such as a disputed charge on the invoice. This requires the employee to hang up the phone and search through emails or a file cabinet to verify that the invoice matches the purchase order or the proposal. This process can be tiring and very time-consuming.Electronic document management streamlines this process. While you’re on the phone with the customer, you just click a button and will immediately see all the documents which belong to the disputed invoice. You can then quickly resolve any questions and start the conversation about scheduling their payment.

A variety of accounting solutions offer some sort of document management capabilities that could help to streamline your accounts receivable process. But while these accounting applications may be able to manage a handful of specific processes and accounting documents, they come up short when you need to access anything else, such as emails, faxes, Word documents and PDFs.

A comprehensive enterprise content management system brings together all of your company’s documents in a central document repository and indexes them in a way that makes all of your information readily accessible, regardless of document type, department or date. Such a platform not only streamlines your accounts receivable process — it increases efficiency and productivity throughout the organization.

Learn more about overhauling your document management processes by downloading our FREE whitepaper, “7.5 Signs Your Document Management Needs An Overhaul”.

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Manage Documents in Windows Explorer, One App and Everything’s Under Control

With a DocuWare drive that appears within your Windows Explorer Client, you can easily access all the documents in your archive. Appearing in the familiar file structure, your documents are seamlessly added and displayed.

Using a very intuitive approach, you can open, copy, rename and store files – in every application of your choosing. Quickly find a vendor’s invoice, add documents to a project proposal, store documents using Drag & Drop from an email attachment: just file it under DocuWare – and you’re done!

This makes sure you can always find everything and stay super-organized. The file directory structure can be defined to suit your needs. The rest is handled by Windows Explorer Client, for example, which can use the path of a target folder to index a document. Just get started – no need to practice, since it’s all such familiar territory.

An extra service for you: the Windows Explorer Client from DocuWare. Install this helpful Desktop App today!WEC_EN

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Could Poor Document Management Put Your Organization In Jeopardy?

poor document managementRunning a successful business is hard enough. But a huge number of companies put their business at risk — and suffer consequences — due to problems with how they manage documents.

In fact, a recent survey by IDC found that over 75 percent “experienced significant business risks and/or compliance incidents and suffered severe consequences due to broken document processes.” Nearly 25 percent said that document process failures had cost them major customers.

Here are three ways that a defective document processes could be putting your organization in jeopardy — and how to mitigate those risks through digital document management.

  1. It’s difficult to secure confidential and sensitive documents: Every business needs to prevent unauthorized access to confidential documents. With a paper-based system, document security boils down to whether or not you remember to lock your file cabinet. With digital document management, you have flexible tools for allowing access to specific individuals or roles within the company. These permissions make it possible to restrict even portions of pages, protecting sensitive business information. Document management also helps you to prevent documents from leaving your company. Depending on the situation, you may choose to block access to a document outside your company’s network, and prevent users from exporting or copying that document. If your security is breached, document management provides an audit trail that makes it easier to figure out who accessed the document and possibly take legal action.
  2. A big storm could be the end: If you’re using a paper-based system, it’s hard to implement a solid disaster recovery plan. Making a second set of your business records and storing them in a separate location would be prohibitively expensive and difficult for most businesses. With a digital document management system, however, you’re covered even if your whole building burns down. You still have a digital backup of all your documents offsite with which to start rebuilding your company.
  3. An audit would bring business to a standstill: Whether it’s the Internal Revenue Service or another regulatory body, you need the ability to document your compliance with records retention guidelines. Digital document management enables you to fulfill these requirements much easier and — at the same time — makes audits much less time-consuming for your organization.If you’re a financial advisor, for instance, you’re required to document which stocks you’ve advised your customers to buy. You could document these consultations on paper and file them away, but in the event of an audit, it might take a long time to retrieve everything you need. It would be much easier and more cost-effective to store and retrieve the scanned consultation documents.

If your document processes are putting your company at risk, it’s time to overhaul the way your organization processes business information.

With a digital document management solution, you gain the peace of mind that your data is securely backed up, while also getting a handle on the ever-growing volume of information that’s flowing into your organization. Integrating document management with your existing IT systems brings new transparency to workflows and leverages the data you already have to streamline operations and make smarter business decisions.

Learn more about overhauling your document management processes by downloading our FREE whitepaper, “7.5 Signs Your Document Management Needs An Overhaul”.

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DocuWare Heats Up Workflows

MANN Energie, 90 Percent Savings Thanks to DMS

Mountains of paper everywhere was the norm at this company specializing in wooden pellets and green energy. Stacks were filled with incoming/outgoing invoices, delivery slips, contracts, internal communication, and project notes. To optimize business processes, save both space and time, and to do something good for the environment – MANN Energie introduced DocuWare.

Burning Wood Chip Biomass Fuel A Renewable Alternative Source Of

Software components were introduced in succession, never interrupting their daily operation. Now, several companies within the MANN Energie family are connected to a central document pool. The amount of time and energy saved has been enormous: where once several steps might be necessary, now it’s just a matter of a few clicks for either document storage or retrieval. New document workflows, for example, help the accounting department know the status of invoices in the process:  which colleagues still need to approve them, who needs a reminder, and when payments are ready to go to take advantage of early payment discounts, avoid late payment fees, and monitor their cash flow.

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Thanks to digitized workflows, month-end closings can be generated much more quickly. The same is true when doing year-end financial statements: they were able to significantly reduce their workload since their auditor can now have direct access to all digital data.

2-Pelletwerk Langenbach

To enjoy the benefits of a paperless office, several of MANN Energie’s vendors decided to join the digital invoicing process. This also helps the company save in paper and mailing costs. General Manager Jörg Thielmann had a lot of positive things to report within just a few weeks after their rollout: “With the professional implementation of our DMS solution, we are now ahead of the curve in both economic and ecological terms.” Processing time for their paper-based workflows was reduced by up to 90 percent letting their employees have more energy for their core tasks.

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Jörg Thielmann, General Manager, MANN Energie

 

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Is Your Document Management Process Holding You Back?

holding-you-backThe way your organization handles documents may seem commonsense and straightforward, but it’s worth taking a second look. Document management is so entwined in your business processes that uncovering and correcting inefficiencies could result in a major boost in productivity and revenue.

For example, if your organization uses a paper-based system for processing invoices, you might have to file three different copies of the same invoice just so that you’re able to locate it by date, name or company. If you were able to improve that process by getting it down to two copies of the invoice — or even one — it would likely result measurable efficiency gains over the course of a year.

You could also take that efficiency a step further with electronic document management, allowing you to scan a document once and retrieve it quickly through indexing and search tools. The indexed search tools are much more powerful than saving electronic documents in a file share, and they also allow for full-text search, a level of visibility that’s impossible in a paper-based system.

Here are three signs that your current processes are not as efficient as they could be:

  1. Employees can’t easily access the documents they need: At many organizations, documents tend to get stuck in a variety of data silos. Email folders, paper file cabinets, local hard drives — all of these make the information stored inside difficult or impossible for others to locate. To work around these silos, employees produce multiple copies of paper or electronic files, resulting in redundant files and uncertainty over which is the latest version.Multiple versions create confusion and mistakes that sap productivity. In an engineering company, for example, you might have 10 copies of a CAD file saved in different places, and nobody knows which is the current one. Or your sales team has several different versions of a price list lying around, leading to inaccurate quotes and time-consuming paper shuffling.If these problems sound familiar, try to identify the silos within your organization and note the locations where you see duplication of documents. Centralizing your document management ensures you’re always working with the latest version of a file and helps everyone to get their respective jobs done.
  2. You’re spending a fortune on physical storage: Paper-based document management is expensive due to the manual processes of filing and retrieving the information. Paper document storage also requires ever-increasing amounts of space, supplies and file cabinets. As the expense grows, finding your documents becomes increasingly difficult.In a digital document management system, storing a scanned image of that paper file is much more cost-effective: It takes up almost no physical space and allows for rapid retrieval when indexed properly.
  3. You can’t see all the pieces of a business process: A transparency issue arises when you have a mix of paper documents and electronic files, such as emails, documents and spreadsheets. It’s hard to store these disparate items in such a way that you’re able to immediately pull up everything related to a given business transaction. You’d have to go through your paper file cabinet, your Outlook, your local hard drive — all of these different silos.A document management system stores all of your document types in one place, including scanned documents, emails and attachments from Outlook, data from your accounting system, invoices and reports. If you want to see all of the documents related to the sale of a certain product, for example, all you need to do is key in the invoice or PO number.

If any of this sounds familiar, think of it as an opportunity to overhaul the way your organization processes business information. Integrating document management with your existing IT systems brings new transparency to workflows and leverages the data you already have to streamline operations and make smarter business decisions.

Learn more about overhauling your document management processes by downloading our FREE whitepaper, “7.5 Signs Your Document Management Needs An Overhaul”.

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Watch and Learn

With DocuWare’s video collection, it’s easy to get a quick overview of modern document management. No need for previous experience – the videos let you learn on the level you want:

1. Overview: “The Time is Right for Document Management” shows you the main applications and benefits of document management.

2. By Topic: We introduce a variety of applications in detail, for example “Storing Documents While Scanning.”

3. Feature Tutorials: See concrete examples of important features, such as “The Easiest Way to Store Scanned Documents.”

Each of the 30 videos run for a maximum of three minutes. They are a quick and easy way to learn about document management – check them out. It’s worth it!

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What Costs Are Hidden In Your Document Management?

hidden costs in document managementEvery day more and more information flows into your organization — everything from invoices and payments to emails, documents and social media data. Unless you have a good document management system in place, all of that information gets stored in disparate systems and locations. As a result, the ever-increasing flow of information becomes less usable and takes longer to find.

Inefficient document management contributes to some obvious expenses, such as the costs related to filing and storing paper documents. But a cumbersome process could also result in less-obvious opportunity costs, such as the loss of discounts.

If your organization uses a paper-based process for accounts payable, for example, an employee must spend time copying invoices and filing duplicates before routing them to colleagues for approval. These approvals often take too long, either because invoices get lost along the way, or the approvers are unavailable for some reason.

Such a system makes it difficult to consistently pay your invoices on time, preventing your organization from taking advantage of early-payment discounts. In time, you could also end up on a key vendor’s “black list” and have a hard time collecting on receivables.

Now, instead of a paper-based invoice management system, imagine that you scan invoices once when they arrive, and the documents are automatically indexed and stored in a secure central repository. For approvals, the system pushes the electronic invoices out to approvers for review, with status reports and alerts to prevent overdue payments.

This way, vendor invoices are paid on time and your business operations move more smoothly with no invoice management headaches.

As more companies embrace remote employees and use mobile devices to conduct business, it’s even more important that your core business systems not depend on having your staff in the same physical office. It’s now expected that people have mobile access to your business information wherever they’re located. It’s difficult to approve a paper invoice when you’re traveling and your desk’s inbox is 3,000 miles away. But that’s no problem when you’re using a digital document management system.

In a competitive market, success may depend on how well your organization processes and manages the constant flow of business information while allowing your employees to focus on their core tasks. Unless you have a good document management system, the ever-increasing flow of information becomes less usable, and locating the documents you need becomes a difficult and time-consuming process.

If your current processes just aren’t able to keep up, you stand to improve the efficiency and cost-effectiveness of your organization by upgrading to digital document management.

Learn more about overhauling your document management processes by downloading our FREE whitepaper, “7.5 Signs Your Document Management Needs An Overhaul”.

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Achieving 100-Percent User Adoption With Enterprise Content Management

enterprise content management user adoptionMaking smart choices about enterprise content management (ECM) and other business technologies doesn’t result in meaningful change if you don’t have a plan for user adoption. Plenty of technology projects start with great energy and enthusiasm, only to stall out when the new system fails to take hold in the company.

To avoid letting your ECM project go to waste, make sure to incorporate the basic change management principles for driving user adoption.

A first important step is to choose effective project leaders. Companies often make the mistake of relying on IT staff to drive technology projects, which isn’t the most effective way to reach business users in your organization. An IT expert doesn’t have information about the needs of specific business units.

That’s why an electronic document management project needs visible support from senior management and department heads, as well as workers that handle the document management process. These employees offer a ground-level perspective on how document processing actually works, helping to make sure that the new document management system accounts for all the necessary steps and details.

When you’re introducing a new process or tool, you should expect your user base to fall into three groups, sometimes called “the 20-60-20 rule.” This concept suggests that about 20 percent of your users could be considered super-users or early adopters: people who are eager and enthusiastic about new technology. Another 20 percent consist of the naysayers, who tend to be change-averse and resistant to new tools. In between those extremes, you have the remaining 60 percent, who are undecided or indifferent to new technology.

Too often, the people leading an ECM or electronic document management project spend the bulk of their energies trying to cajole the naysayers into using the system. The 20/60/20 rule suggests a different approach: Use that energy to support the 20 percent of early adopters so that they are able to champion the technology to the middle 60 percent of users on the fence. Once you’ve reached 80 percent adoption, the naysayers tend to bow to the inevitable and get on board. 

The people who seem like prospective super-users need to know as much about the system as possible, so involve them in beta testing and special training to make sure they’re well-equipped to champion the new technology. You may want to change some of their responsibilities in order to allocate more time for them to play an active role in the implementation. Building up these early adopters pays off when the new system is rolled out to the whole company, because employees then have peers who are enthusiastic about the project.

To prepare your organization for getting on board with electronic document management, it’s important to start your project by setting clear business goals that your company wants to achieve. Those goals might include meeting customer needs more effectively, using less paper, reducing processing costs or driving new business.

These goals help to clarify and communicate why your company needs to make this change. Business goals are usually straightforward and an easy way to engage people with different attitudes toward technology. From there, focus on communicating how the company is going to achieve the business goals by implementing the electronic document management. This early communication should help you engage the middle 60 percent of your users, making it easier for your super-users to sway them.

User education and appropriate training are also vital to implementing electronic document management. A person who files documents all day needs specific training for those tasks, while people who use the system for more general purposes probably only need the basic system training.

In the end, good leadership, planning, communication and training should help each individual understand how their actions fit into a larger process and build toward achieving the big-picture goals set out at the beginning. And building that awareness requires ongoing communication along with sharing accomplishments and improvements in highly visible ways.

Are you ready to learn more about getting your entire organization behind your document management initiative? Contact DocuWare today for a free consultation and comprehensive cost-benefit analysis.

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7 Essential Document Management Best Practices

document management best practicesWhen you’re thinking about how to implement digital document management for your organization — or how to enhance your existing system — focusing on the right aspects results in a more effective, successful solution. But where do you start?

Here are seven essential document management best practices:

  1. Set goals and key metrics for document management: Many companies decide to implement a document management system, but don’t take the time to set goals for what they want to achieve and determine how to measure their progress. Document management systems have lots of business applications, so it’s important to be specific. Are you trying to help users find documents more quickly? Save on document storage costs? Improve collaboration?Before you implement your document management solution, you also need to specify the metrics and key performance indicators (KPIs) that will measure progress toward those goals, and set a baseline with your existing system. For example, perhaps it takes 10 minutes to process an invoice with your existing system, but only two minutes after using the new system for three months. Sharing these measurable successes within the organization is a great way to encourage adoption as you move forward.
  2. Prioritize business processes and systems to automate: A major benefit of digital document management is the ability to automate processes in ways that reduce the time and effort for your users. To improve efficiency, you want users to get into the system, get what they need and get out with as few clicks and steps as possible. Make sure that you prioritize automation efforts to focus on processes that are most important to the business and in line with your goals for the document management system, such as speeding up an important process, improving customer response times or leveraging accounting systems to capture early payment discounts.For example, a manufacturer decided to use document management to respond more quickly when customers inquired about the technical details for their orders. Prior to automating this process, the average response time was 6 to 10 hours, depending on whether the order was stored onsite or had to be retrieved from an offsite storage location.After automating with digital document management, the manufacturer reduced the average response time to less than 30 seconds.
  3. Consider additional automation opportunities: Document management has the ability to automate numerous functions, integrating workflows and data capture with databases, applications and notifications.By automating how you capture documents, it’s possible to gather information and make the contents searchable, using workflows to intelligently detect the document type and automatically route it to the right people in the organization. If the document needs approval from multiple people, automated workflows streamline the process of gathering those approvals, reducing user effort and maximizing the value of the document management system.
  4. Capture content close to the point of origin: Your system should be able to capture electronic records without the need to print a document and scan it into the system. Capturing your content as close to the origin as possible increases efficiency by eliminating steps and improving data quality. Virtual printers and electronic forms help you to automatically extract data from a document, reducing manual data entry.
  5. Improve on paper-based processes, instead of emulating them: Many organizations make the mistake of trying to replicate their paper-based processes in a digital context, instead of using the new process to eliminate inefficient steps. When you’re setting up digital processes, ask why you followed a certain procedure in the past, and whether those steps are necessary in this new context.For example, a state government agency wanted to convert its purchasing approval process into a digital workflow. At first, it replicated the paper-based process, which relied on the comptroller’s assistant to collect and route approvals at every stage. By building its business rules into the document management system, the agency was able to route invoices for approvals without the need for a gatekeeper at every step.
  6. Align indexing with business needs: In general, indexing digital documents helps to process the data and retrieve documents later. Make sure that the indexing system you use matches your business needs, instead of gathering lots of extra data that’s not being used. Too many index fields make it unnecessarily difficult to capture documents without adding to their usefulness, especially when this information must be entered manually.
  7. Keep the user interface simple: Document management systems are designed to solve many different problems, but all of the features don’t need to show up on every user’s screen. A good system should allow administrators and users to show only the most useful elements for a specific user. Simplifying the interface makes it easier for a person to accomplish their tasks without confusing or overwhelming them with details that aren’t relevant.

If you want to get the most from a new system, or to make your existing platform more effective, these document management best practices aren’t just options — they’re essential.

Are you ready to learn more about document management best practices? Contact DocuWare today for a free consultation and comprehensive cost-benefit analysis.

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