Document management systems are moving into the mainstream. In the sci-fi thriller Minority Report, one of the most impressive scenes was Tom Cruise rapidly moving his hands to retrieve and manipulate large amounts of video and text files on a large three-dimensional screen, truly giving new meaning to the phrase "information at your fingertips." While not quite as technologically advanced as this, document management software systems of today still provide the means necessary to achieving a truly paperless work environment.

Document management has come of age. Certainly this year many accounting firms will (or should) consider implementing these increasingly paperless systems that have the potential to dramatically change workflow processes for both office-based and remote users. A completely paperless environment is probably not attainable, but one with less paper certainly is desirable. Typically, a CPA firm might have over 20 percent of its physical space devoted to the storing and retention of paper files. A reduction to just 10 percent would result in significant cost savings. Another often overlooked benefit of document management software is that in the event of a disaster, file back-ups readily retrieve all stored documents-accessible, if necessary, from remote locations.

Also referred to as digital optimization or the paperless office, document management is the process of capturing and managing documents electronically. A simplistic view of document management is that of an electronic (paperless) file cabinet, used to organize and store archived documents originating from multiple external sources. Rather than searching for documents in physical files, accountants can access them instantly from these virtual filing cabinets. The result: Information at your fingertips!

The most important elements to consider when going paperless are the conversion of existing documents to digital files, the storage of these digital files, and the indexing systems for retrieving these stored files. Scanning or printing to file are the most prevalent methods of converting records. You can also purchase software to receive faxes electronically, saving the scanning steps. Business rules need to be developed to determine what should be converted and the most appropriate format for storing the digital files. Choices include simple optical character recognition; Word documents, which allow electronic editing of files after they have been converted; and PDF files, which allow for document annotations.

The concept is simple; the difficulty is in choosing and implementing the right solution. Choices of software range from simply collecting digital images that are organized manually in folders to using sophisticated databases that store these documents with complex indexing systems. Paperless office systems also require hardware used for scanning paper documents into electronic format. The key is to evaluate useful features, not simply the number of features.

Consider also the clients' source data, its location and method of procurement, and movement through the various layers of the firm. For just a simple tax return, the client's original data must be obtained, scanned, turned into a tax return, reviewed by others, printed for delivery, and stored for later retrieval and copies.

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