1. Game-Changing Document Management Strategies

2. Table of Contents 1 2 3 4 Introduction Embracing Change Emerging Trends Evaluating Systems Implementing Your Solution ll Workflow ll Integration ll People ll Software as a Service (SaaS) ll Mobile Access ll Knowledge Management ll Integration ll Scan and Flow ll e-Signatures ll Single Repository ll Integration & Workflow ll Scalability ll Accessibility ll Security ll Efficiency ll Collaboration ll Champion Team ll Executive Champions ll Defined Workflow ll Scope ll Timing ll Training PAGES 48 PAGES 912 PAGES 1321 PAGES 2225 2014 CCH Incorporated and/or its affiliates. All rights reserved. 3. The Document Management Dilemma Document management seems like it should be so simple. But for most accounting firms, organizing, storing, securing and finding information is anything but easy. Does your staff lose time and patience searching for information, client files and documents? Organizing, storing, searching for and retrieving documents should be easy to do, yet few firms have a well-planned document management strategy in place. The right document management system can improve your firms efficiency, accuracy, and ultimately, profitability. But in order to achieve a good return on investment from any new document management system, youll need a solid workflow and process. This guide will walk you through: ll How to embrace change to improve your document management process. ll Emerging trends that are shaping the future of document management. ll What to look for when youre evaluating document management solutions. ll Tips for ensuring a successful document management implementation. Wheres my client file? Do I need to keep this email? How did we do this on last years return? Is this the most current version? Who changed this since I reviewed it? 2014 CCH Incorporated and/or its affiliates. All rights reserved. 4. Embracing Change SECTION 1 ll Workflow ll Integration ll People 2014 CCH Incorporated and/or its affiliates. All rights reserved. 5. Good Document Management Improves Workflow The right document management technology combined with the right workflows will enhance your firms productivity. Before you can find the perfect system, you need to know why youre taking the document management journey. Take the time now to map out your daily workflows and identify areas where work takes too long or mistakes get made too often. ll What would a better process for document management look like? ll In an ideal world, with what other software would your new document management system integrate? Tax preparation? Practice management? ll How would your firms people interact with the document management system? Could they access it offsite? On mobile devices? Workflow People Integration EMBRACE the opportunity to CHANGE your PROCESSES 2014 CCH Incorporated and/or its affiliates. All rights reserved. 6. Define Your Desired Workflow The biggest mistake you can make when planning for a new document management system is to fail to improve upon your existing workflows first. Get the document management workflow right before you evaluate and choose a new system. The document management system you choose needs to accommodate your desired workflow, not necessarily your current workflow. If you dont know the best way for your staff to work, how can you properly evaluate different document management systems for the right fit? Youre going to live with this new system for a while and its much easier to start out with the right organizational structure and supporting workflows in place than to reconfigure the system later. At Wolters Kluwer, CCH, weve helped thousands of firms make the move to becoming a digital firm. One of the most common mistakes we see is when firm leaders try to quickly implement a new document management solution over old, less-than-efficient processes. Forcing a new document management system onto an existing process that never worked well will not transform your firm it will only create a more high-tech version of a broken process. Take time now to gather stakeholders, define objectives and give yourself plenty of time to think. This is the most important step in your document management journey. 2014 CCH Incorporated and/or its affiliates. All rights reserved. 7. Integration will give your firm its biggest gains in productivity. Create optimized workflows that save your staff from constantly having to open and close programs. If your firm has multiple systems that create documents, make sure those systems integrate with any document management system you select to improve ROI and efficiency. Possible Document Management Integration Points ll Scan, extract and flow process ll Tax preparation ll Practice management and billing ll Client portals ll Desktop productivity tools (Microsoft Office) ll Email ll Back-office applications (HR, accounting) Identify Potential Integration Points 2014 CCH Incorporated and/or its affiliates. All rights reserved. 8. Your new document management strategy wont work unless the staff is fully engaged from the start. Make sure youre getting good input from your team during the planning phase. They will adopt a new solution and processes much more eagerly if they were able to express their needs before a new system was implemented. Staff from all practice areas and at all levels should be involved in a firm-wide champions team. This team will plan the document management project, drive it forward, evaluate and recommend a solution, and help the rest of the staff learn to use it. Have strong support from top management, including partners, to help get your staff engaged with the new document management processes and system. As you begin to implement a new process and technology, make sure the staff is understands the workflows and policies. Training should include more than just how to use the new software. Involve a Variety of People 2014 CCH Incorporated and/or its affiliates. All rights reserved. 9. Emerging Document Management Trends SECTION 2 ll Software as a Service (SaaS) ll Mobile ll Knowledge management ll Scan and flow ll e-Signature 2014 CCH Incorporated and/or its affiliates. All rights reserved. 10. Getting ahead of the emerging trends in document management can provide competitive advantages for your firm. Software as a Service (SaaS) is growing in popularity as firms become comfortable with the security and disaster recovery capabilities and realize the benefits of a reduced IT burden. In SaaS, the software and database are maintained by the vendor in the cloud. Some solutions are designed on open architecture for easier integration. With cloud-based software, CPAs can work from home, remote offices or on business trips, providing more flexibility than ever. Mobile access to software applications, combined with the proliferation of smartphones and tablets, is enabling accounting professionals to have access to their client and project information anywhere, anytime. Although most accounting professionals still do the majority of their work from an office, mobile access enables additional flexibility for staff and more responsive client service after regular business hours. Knowledge management systems focus on the internal knowledge of a firm and how to best collect, organize, store and communicate that information throughout the organization. Today, accounting professionals are starting to use social collaboration tools to share business knowledge with colleagues and clients. Firms can use industry-specific solutions such as CCH KnowledgeConnect in addition to general systems such as Microsoft Sharepoint for Knowledge Management. Software as a Service Mobile Knowledge Management Emerging Trends in Document Management 2014 CCH Incorporated and/or its affiliates. All rights reserved. 11. About 80% of pioneer firms those most profitable and efficient in a Wolters Kluwer, CCH survey are already using scan, document management and data extraction technology in combination to flow information throughout their firms. Citation: CCH Leaders Now and Next Survey Remove basic data entry from the daily demands on your staff, and your employees can more quickly become trusted tax or business advisors to clients. Scanning and data extraction are two excellent tools to eliminate data entry. When integrated with your document management system, scanning and extraction can really complete the automation of your document management process. You can digitize paper documents by scanning at the front end or back end of your workflow. You can implement back-end scanning without changing your existing process. But, with front-end scanning, youre able to take advantage of data extraction to flow information out of your scanned documents and auto- populate forms with it a real time saver! Emerging Trend: Scan and Flow Source: CCH Leaders Now and Next Survey Electronic scanners 62% 23% 15%2%78% 20% 80% 10% 10% Mainstream/ Late AdoptersEarly AdopterPioneer Software to automatically extract data 15% 34% 51%80% 20% 26%25%49% Electronic document management system 36% 35% 29%1%79% 20% 9%74% 17% 2014 CCH Incorporated and/or its affiliates. All rights reserved. 12. New guidance issued by the IRS in 2014 empowers firms to collect client e-Signatures for Forms 8878 and 8879. Firms can save over $10 per return by implementing e-Signatures, but make sure your vendor knows how to comply with the rules set forth by the IRS. Emerging Trend: e-Signatures Audit Log The software you use needs to have some type of audit trail or system log that can keep track of the method used to electronically sign the record. Verify Identities e-Signature software must separately identify and authenticate each signer of a tax return. Generally, this involves posing knowledge-based authentication questions to the taxpayer. Security Signed documents need to be tamper proof, locked and stored in a secure location. You must be able to deliver documents to clients through encrypted process so that you maintain security of sensitive client information and comply with privacy laws. Your software must record and keep: ll Digital image of the signed form ll Date and time of the signature ll Identity verification ll e-Signature method used or audit trail If remote user: ll Taxpayers computer IP address ll Taxpayers user name 2014 CCH Incorporated and/or its affiliates. All rights reserved. 13. Evaluating Systems SECTION 3 ll 7 key areas for comparing document management solutions 2014 CCH Incorporated and/or its affiliates. All rights reserved. 14. Youve set your goals, made a plan and designed a new process. Now youre ready to start comparing and contrasting different document management systems. Evaluate each solution on these seven key areas to determine the right fit for your firm. What to Look for in Document Management Systems Integration & Workflow Accessibility Security Efficiency Single Repository Collaboration Scalability 2014 CCH Incorporated and/or its affiliates. All rights reserved. 15. Good document management can help you provide clients with the same value, but more quickly and easily. Is your firm trying to move to more value-based billing? A single repository of information can be the linchpin of better firm efficiency. You can quickly leverage work and research thats been done for other clients. In this way, document management can help you provide clients the same amount of service, but with higher profitability. Its important to understand how youre going to send lots of different types of information to the document management system, including tax returns, client information, engagement letters, research and even emails. How will the solution store, organize and find those items later? Choose a platform with a single repository for documents, firm knowledge and client information if you can. If that isnt in the cards, then integrate disparate technology products as much as you can. Single Repository Storing Files and Document Routing Email Management Document Searching Firm Knowledge and Client Info 2014 CCH Incorporated and/or its affiliates. All rights reserved. 16. Look for a document management solution that offers mobile access to your clients data and provides functionality that conforms to your document management policies. How do you and your staff plan to work and access documents? Many professionals are thinking about how remote and mobile access to documents can help them accomplish more. A cloud-based document management system gives you the ability to access documents in the office, at home or on a mobile device. Mobile access enables you to walk into a client meeting and essentially have your entire file room with you to help answer questions and give advice. As you evaluate, ask how each system will handle remote access. If a system requires the use of either a dedicated system or a VPN, those are more difficult access methods than a true SaaS solution. Accessibility Mobile Functionality Hardware Security Can key firm practices be accomplished remotely? Most professionals now work at least some hours outside their offices. 2014 CCH Incorporated and/or its affiliates. All rights reserved. 17. Integration and Workflow Integration helps improve workflow. When comparing document management products, create an integration matrix with your existing products plotted against each document management solution. Tighter integration always yields greater efficiency. Document management should give your firm the ability to monitor, route and search for files and information quickly. You should be able to track and monitor any file and its location in real time. You can also report on the number of documents you have in any phase of the workflow, so you can help your staff manage workloads. Many firms have started to implement more integrative platforms so staff members dont have to open up so many programs and recall so many passwords each day. For example, CCHAxcess is a fully integrated platform with a single login that brings together project management, time and billing, and tax in one system sharing common data and services. Ease of Use Retention Management Version Control Digital workflows dont necessarily mirror your paper workflows they should be more efficient. Status Reporting 2014 CCH Incorporated and/or its affiliates. All rights reserved. 18. Consider your current and future document storage and hardware needs. When evaluating solutions, you need to address scalability. That means considering all of the ways that your firm is likely to grow in terms of professionals, clients and practice areas. Many firms believe theyre either too small to need a document management system or too large to buy an off-the-shelf solution and must therefore build a system in-house. In reality, most document management solutions can handle a firm of any size. Concentrate on understanding how each system would work within your expectations and what features best support your workflows. Many firms will implement document management by digitizing only the client files. Instead, Wolters Kluwer, CCH recommends implementing document management in all departments at once, so you can make take advantage of the benefits of document management (version control, retention, etc.) across the firm. Make document management grow with your firm and handle any and every type of file you use. Scalability Room to Grow Storage Limit Works across Diverse Business Areas Current and Future Needs 2014 CCH Incorporated and/or its affiliates. All rights reserved. 19. Collaboration To collaborate with staff, clients and third parties, you need a secure method to distribute documents internally and outside your firm. Research shows that when firms exchange documents like tax returns with their clients, about 20% use regular email! Other solutions employed include encrypted email, external services like Dropbox and client portals designed for accounting firms. Wolters Kluwer, CCH recommends using integrated client portals. They offer secure, easy file sharing, and give clients immediate access with the ability to search and filter information. Portals usually have check in/check out features and can follow document retention/destruction rules. Some even feature collaboration tools like e-Signature. About 40-50% of firms are using portals today. Any collaboration tool you use should be guaranteed by the vendor to be as secure as accounting portals and should comply with applicable laws such as SAS 70, HIPAA, PCI and more. Client Portals Search and Filter Immediate Access Easy File Sharing Flexible Security 2014 CCH Incorporated and/or its affiliates. All rights reserved. 20. Configure and utilize role-based security groups to assign pre-set access rights to files and client data. Document security is a concern for any business, but especially for accounting professionals handling sensitive client financial information. Find a document management solution that offers layers of security so you can control access to specific files and documents. For example, you may wish to restrict access to high-profile clients. Or, you might need to prevent staff from viewing files in the litigation services practice area. Ask vendors these questions: ll Can you set up different layers and levels of access for certain users, groups or roles? ll Can you prevent some users from using certain functions? ll Can you restrict access to certain clients or groups of clients? ll Can you restrict access across departments or offices? ll Are files encrypted when not in use and during file transmission? Security Restrict Access to Certain Clients Restrict Functionality Restrict Access across Org Units Layers of Security 2014 CCH Incorporated and/or its affiliates. All rights reserved. 21. The principal goal of document management is to improve firm efficiency by removing the barriers you faced with a paper-based process. Look for products that solve existing efficiency pain points! To make workflows faster and improve data accuracy, pay attention to how you will categorize files in your new document management solution. Keep your categories simple and very intuitive. Make it easy to sort, group and filter files. Avoid mimicking the filing system that you have now, especially if it doesnt work very well. As you evaluate solutions, look for things that boost efficiency and speed adoption, such as: instant access, usability, ease of training and learning, intuitive and adaptable graphic interface, and flexibility in indexing documents. Once youve selected a solution, work with your solution provider to document every aspect of your implementation process. Efficiency Editing Encryption Distribution Email Management Integration 2014 CCH Incorporated and/or its affiliates. All rights reserved. 22. SECTION 4 ll Create teams of champions ll Plan the scope of your implementation ll Define your new workflows and integration ll Think about the best time to implement ll Create new policies and train your staff Implementing Your New Solution 2014 CCH Incorporated and/or its affiliates. All rights reserved. 23. Your document management implementation plan should evolve with your strategy. As you evaluate providers, make sure each vendor can explain the implementation process in detail. Recruit champions For document management to work, you need input from every part of your firm. Assemble a champions team of staff members to help define existing processes, develop new ones and provide feedback. Recruit an executive champions team of partners and senior managers to guide overall strategy. Define your goals Carefully scope out your document management project. What are you trying to accomplish for your firm? Build consensus among your champions for the project goals and constraints. Map your workflow Plan your new workflows within the champions team and decide what integrations you will need to achieve the best possible efficiency. Plan your timing Avoid implementing any new system during your firms busy season. Time your rollout so that all departments and practice areas go live at the same time. If you implement document management piecemeal, you risk storing client files differently across practice areas. Dont forget training Train the champions first, then the entire organization. Train your staff on the new system as well as the new policies and procedures that guide how and where to store every type of document. After the system has been in use for a little while, gather user feedback and train again on any areas of concern. Document Management Implementation Tips 2014 CCH Incorporated and/or its affiliates. All rights reserved. 24. Join us on at CCHGroup.com/Social 2013-0506-22 8/14 2014 CCH Incorporated and/or its affiliates. All rights reserved. For more information about document management solutions from Wolters Kluwer, CCH, visit CCHGroup.com.