Nobody understands the value of good, proper record-keeping more than the accountant. Chances are that you've emphasized this to your clients several times. Obviously, the last thing you need is for your firm to gain a reputation for not walking your talk when it comes to maintenance of your files. Read on to learn why accountants like yourself can benefit greatly from document management.

The Document Management System

As the name suggests, when you have a document management system, this is how your firm stores crucial records. That includes contracts, vital processes, financial records, communications, and other important information. The term applies to both digital storage (online) or the manual kind, which essentially means paperwork. A good rule of thumb is to have a healthy mix of both.

It should be said that paper systems tend to work well enough. However, they're only alright for as long as their containment area (filing cabinets, boxes, walls) is okay. A flood, fire, or some other emergency can lead to your paper records getting damaged. If not that, however, there may also be issues that arise with accessing the records in the first place. Imagine what it would take to get that information back or, at worst, try to rebuild it all from scratch. Looking pretty tough? A document management system that's online, such as small business accounting software, will help this along quite well.

Why the Document Management System Is Vital for an Accounting Firm

Access Is Much Easier

As previously mentioned, it's crucial for employees to have immediate access to records when they need them. Instead of authorized employees having to step away from their desk to another room or a different floor to rummage through paperwork, they'll just have to tap a few buttons. The relevant data from their invoicing & payments software will get to them right then and there.

Storage & Cost Efficiency

When a records system is largely paper-based, things can get rather crowded and costly very quickly. Having paper documents in piles or taking up several filing cabinets is not ideal. Moreover, spending a lot of time and money on printing and posting documents that could just be e-mailed won't be good for your business in general.

It Makes Things Far More Secure

Off the top of your head, think about who's able to access the computer system of your firm. Only relevant and trustworthy employees with proper security clearance and knowledge of the passwords will have access. They will also have digital footprints left behind. Computer records are way trickier to get accessed by just anyone. More importantly, you will be able to keep track of the ones who do.

Conclusion

Any accountant and/or accounting firm worth their salt knows the sheer importance of proper record-keeping. A document management system is typically just paper-based, but ideally, there would be at least a combination of paper and digital records—if not a fully digital one. The benefits of a proper document management system include increased security, easier access, and cost-efficiency as well as better storage.

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