Document Management

What is document management?

Document management is the process of capturing, storing, organizing, and retrieving electronic and paper-based documents. It’s an essential process for multiple departments in an organization, as they need to be able to access and manage a wide variety of financial documents, such as invoices, receipts, contracts, and tax returns.

Benefits of document management.

There are a number of benefits to using a document management system (DMS) for accountants, including:

• Improved efficiency: A DMS can help accountants improve their efficiency by automating many of the manual tasks involved in document management, such as filing, scanning, and indexing documents.
• Reduced costs: A DMS can help accountants reduce costs by eliminating the need to store and manage paper-based documents.
• Improved compliance: A DMS can help accountants improve compliance with financial regulations by providing a secure and centralized repository for all financial documents.
• Reduced risk: A DMS can help accountants reduce the risk of fraud and other financial losses by providing a tamper-proof record of all financial transactions.

Features of document management systems.

DMSs typically include a variety of features, such as:

• Optical character recognition (OCR): OCR converts scanned documents into text that can be edited and searched.
• Indexing: Indexing allows accountants to tag and organize documents based on criteria such as date, document type, and client name.
• Version control: Version control allows accountants to track changes to documents and revert to previous versions as needed.
• Collaboration tools: Collaboration tools allow accountants to share documents with other team members and clients.
• Security features: Security features such as encryption and access control help to protect financial documents from unauthorized access.

How to use document management systems.

Accountants use DMSs in a variety of ways, including:

• Managing invoices and receipts: Accountants can use a DMS to store and manage invoices and receipts from vendors. This can help accountants track expenses and ensure that all invoices are paid on time.
• Managing contracts: Accountants can use a DMS to store and manage contracts with clients and vendors. This can help accountants track important dates and deadlines, and ensure that all contracts are in compliance with the law.
• Managing tax returns: Accountants can use a DMS to store and manage tax returns for clients and businesses. This can help accountants prepare tax returns accurately and on time.
• Auditing: Accountants can use a DMS to store and manage audit documentation. This can help accountants conduct audits more efficiently and to provide clients with a more accurate and complete audit report.

Tips for using document management systems.

A DMS can help accountants to improve their efficiency, reduce costs, improve compliance, and reduce risk. By following the best practices listed below, finance teams can effectively implement and use a DMS to improve their document management practices.

Here are some best practices for using a DMS for accountants:

• Develop a document retention policy: A document retention policy should outline which documents need to be retained and for how long. This will help accountants ensure that they are complying with financial regulations and that they are not wasting storage space on unnecessary documents.
• Create a consistent filing structure: A consistent filing structure will help accountants find documents quickly and easily. Accountants should create a filing structure that is based on their business needs and that is easy for everyone in the organization to understand.
• Index all documents: Indexing documents will make it easier for accountants to search for and retrieve documents. Accountants should index documents based on criteria such as date, document type, and client name.
• Regularly back up your documents: It is important to regularly back up all documents in the DMS to prevent data loss in the event of hardware failure or other disaster.
• Use the DMS to generate reports: Many DMSs can generate reports on document activity, such as which documents are being accessed and by whom. This information can be used to identify areas where the document management process can be improved.
• Integrate the DMS with other accounting software: Many DMSs can be integrated with other accounting software, such as ERP and CRM systems. This integration can help automate tasks and improve the efficiency of the accounting process.
• Use the DMS to collaborate with clients and vendors: Many DMSs allow accountants to share documents with clients and vendors. This collaboration can help improve communication and compliance.

How Airbase helps with document management.

Airbase helps with document management in some important ways. First, it provides an invoice inbox that is an efficient and effective way to capture and maintain transaction documents.

Next, it prompts purchasers to gather important documents before a transaction is approved. Examples would include W-9s, SOC reports, and a legal contract. These are all filed at the transaction level in Airbase and become part of a final audit trail.

Having all documentation associated with the transaction record can save accounting teams a lot of time during an audit.