Why Accounting Firms Need A Document Management System

Posted by Shekhar Chauhan on May 7th, 2019

In today’s business environment where the key to a successful business is to manage costs while increasing efficiency, document management software has become an essential tool to accomplish these goals. Accounting departments and accounting firms will benefit the most out of Document Management Systems and here are some of the reasons why.


Cost Reduction
Accounting departments rely heavily on paper to produce financial reports. In fact, a typical accounting department will take a good percentage of an organisation’s paper consumption.

The cost of paper has continuously risen over the years to a point that many companies are actively searching for methods to drastically reduce their paper consumption to reduce operational costs.

When dependence on paper is reduced, so will other costs directly related to its use. Storage costs, reproduction costs and delivery costs will be greatly reduced as well.


Compliance and Regulation
Regulations require organisations to be able to readily access records. With these records in electronic form, accounting departments and accounting firms improve their compliance to these regulations.


Increased Security
Security of their records has been a major concern for accounting departments. Document management system provides different levels of security according to the permissions programmed into it.

Only a certain group of people are provided access to accounting records. Within this group, different levels of security can also be provided in accordance to the sensitivity of the information.

As an added security feature, electronic back-up copies of records can be frequently updated to ensure that data is protected under any circumstances.


Real-time Collaboration
Document management will enable different accountants to work on a single record simultaneously. This is particularly beneficial to organisations that have remote locations or even have different offices located around the globe.

Records are updated in real time so reports can be processed and presented in a more efficient manner.


Increased Productivity
It has been proven that Document Management Systems increases the productivity of accounting personnel. Much time and effort is wasted in accessing files in a paper environment.

With the efficiency of Document Management Systems in storing and retrieving records, the time required to access documentation is greatly reduced thereby improving the productivity of accounting personnel.

Many corporations around the world, regardless of size and industry, have started to rely heavily on using Document Management Systems for their accounting departments. The role of Document Management Systems in accounting is to greatly reduce costs and to improve the efficiency of accountants and other positions directly or indirectly affected by this department.

With Document Management System improving the efficiency of the accounting department as a whole, the efficiency of the entire organisation is improved as well. Other departments that require reports produced by the accounting department can have access to these reports in a matter of seconds.

Departments that require updated reports, especially for global corporations, can have access to updated reports whenever they require. With this type of efficiency, the performance of the entire company and even associated companies, are greatly improved.