The following article is written by a vice president of strategic business development at a software company that focuses on information relationship management software. The author works with small and midsized businesses to bridge the gap between digital content and paper documents. By intelligently linking and matching documents to important data objects such as people, companies, processes, and assets, a business can improve communications, enhance customer service, and provide immediate access to information and relationships within the data.

Before the busy season, CPAs in small and midsized firms should take time to clean out the office clutter that slows productivity. Although most CPAs use technology for accounting and other tasks, many still have disjointed software supporting separate functions. The right technology solution can help improve overall productivity with a clean-up plan to help the busy season go smoother. To eliminate inefficient processes, here are solutions to tackle the top five productivity killers and improve workflow.

Organize and automate to boost productivity

1. Productivity killer—disorganization
Disorganization may bring to mind a messy desk, but the worst clutter may be in electronic storage. Too often technology captures and stores information in a database, but doesn’t provide for an efficient way to easily sort and access information. When users cannot access information quickly, they can overlook or lose data. Capturing the data is useless if it is not properly organized.

To organize information for easy retrieval, consider how to identify, locate, obtain, and store data. Search and retrieval functions should allow instant access to information through multiple search tools for documents and data and their relationships. User-defined key words and criteria should allow users to easily retrieve documents as well as other stored data. Many software packages can capture data, but finding a technology solution to organize information is essential for improving workflow.

2. Productivity killer—lack of automation
As automation has improved productivity, businesses have reduced employee hours for manual functions to maximize efficiency. However, even though workflow processes are automated, many firms still struggle with paper documents. For instance, if journal entries do not have the supporting detail in electronic files, quick answers are not possible. Too often accounts payable and receivable details are in the form of paper documents, such as purchase orders and invoice vouchers, which are stored in file cabinets. Employees spend time searching for paper documents to answer customer inquiries, which can interrupt workflow.

Employees can reduce the amount of work hours spent doing manual entry and file searches by scanning documents, which allows for quick retrieval. With immediate access to electronic data and quick response to inquiries, customer service improves. In a paperless environment, CPAs can view documents online during engagements, employees can work offsite with remote access to data, and the firm can reduce the storage needs and expenses associated with paper documents.

Steve Morehart, a partner with Beard Miller Company, a mid-Atlantic regional CPA firm, says, “Our office is using electronic workpaper software. Although we do not always achieve a paperless environment, there is certainly less paper. The significant pros of using such software include the ability to access workpapers from our various offices and use and analyze information from clients more effectively and efficiently than we could with paper documents.”

To boost productivity, a document imaging/management solution should be able to store and retrieve vendor invoices, payments, and contracts. Receiving original documents electronically reduces paper shuffling and storage requirements. Emails, faxes, or website information can also be automatically linked to a client file so that no paper documents are created, filed, or retrieved. Finding a technology solution that integrates smoothly with existing software helps boost productivity and reduces downtime that is due to incompatibility issues.

CPAs need to access documents anytime and anywhere. A paperless system makes scanned documents available for review so CPAs are not bound to the client site. Service to the client improves if practitioners are not on-site interrupting the normal workflow and asking for documents.

Enhance internal communications to unite team members

3. Productivity killer—inefficient internal communications
Inefficient organization of internal communications can cause team member disarray. Often, unstructured communications fall outside of normal workflow procedures even though they represent much of a company’s information in the form of memos, emails, instant messages, and web content. Because record retention requirements may apply to internal communications, all forms of content, both structured and unstructured, need to be categorized and stored in an organized manner with other documents.

For accountants to best perform their jobs, all information should always be easily available. When a CPA emails a response to a client inquiry, the email should be automatically tagged to the client file in the database. Voicemail messages should be notated electronically and categorized according to corresponding records. If emails and internal memos are not attached to relevant files, then a team member may be misdirected and waste billable hours.

Technology solutions must offer tools for effective internal communications in order to keep separate functions cohesive in a company; changes and updates to procedures will then be recognized. Communications that affect data can automatically link to it, so the data will be updated for future reference. With good internal communication, CPAs appear credible to clients and are able to provide high quality customer service.

Use technology efficiently to improve workflow and centralize information

4. Productivity killer—poorly planned workflow
Don’t become a slave to technology by letting the solution dictate workflow processes. Make technology work for your firm. Identify the workflow system with the most efficient procedures for your organization, and adapt the technology solution to procedures that are efficient and streamlined. Compliance concerns have increased for many companies as a result of amendments to the Federal Rules of Civil Procedure and the Sarbanes-Oxley Act of 2002.

“Technology has made it easier to comply with various record retention requirements through security and control features built directly into the software,” Morehart said.

Automated workflow can address compliance issues by sorting necessary information and tagging data for future compliance purposes. Similarly, retention requirements can be automated. Although state and local rulings may differ, the IRS allows the destruction of paper records if files are accessible electronically. Automated security allows limited access to files so privileged information remains secure. With multiple levels of security, a tax file may be accessed for revisions only by a CPA, while the client can access the same file for review only. Business continuity and disaster recovery procedures can be a fluent extension of a company’s automated workflow; so business, even if interrupted, is not radically disrupted.

5. Productivity killer—duplication of tasks
Duplicate handling of information can slow processes. In an organization with departmentalized offices, several people often perform the same tasks because of separate systems in different departments. Centralization allows for streamlined workflow so that people can review the same information from a main database. Look for a technology solution that allows you to integrate the various software tools used in the organization. For instance, a solution might capture word processing documents, spreadsheets, and email to integrate with auditing software and merge with client files.

Morehart said, “Our electronic workpaper software serves as a centralized location for information contained in other software such as Word and Excel. One of the most significant benefits is the ability to access data remotely, which enables engaging team members from various offices to access and review workpapers without having to physically send original hard copy documents back and forth.” With improved efficiency, the time needed for processes can be greatly reduced, giving CPAs time to build their client base and increase their revenue.

SMBs can compete with the big guys

Tackling the clutter can make the busy season more productive. With electronic documentation, all necessary information can be attached to the appropriate file for improved workflow. Updated information and notes can be linked to files, which, during audits, is valuable for clarifying issues about approval and reasons for rejection.

Additionally, accounting transactions can be shown with supporting detail. User security levels allow different access for different users. Audit trails and backup keep the information secure within retention requirements. Ease of use and centralization allow auditing teams to collaborate from separate locations.

So don’t fall prey to the productivity killers. The right technology solution can help to ease the busy season. With affordable technology solutions available today, small and mid-sized businesses (SMBs) can now operate with the same efficiency and achieve the same high levels of productivity as enterprise-size companies while offering the same high-quality services to clients.

Laurie Shufeldt is vice president of strategic business development at FileVision (www.filevision.com). She can be reached at lshufeldt@filevision.net.