I think that when a tree first saw the Hewlett Packard LaserJet III printer, it probably shuddered. Although it can’t be proven, more forests were probably ravaged by the laser printer invented in 1984 than with any other pest!

While many of us describe the accounting profession as a business that “kills trees,” when we operate a business without properly managing documents, we waste valuable, productive time searching for the lost memo and the lost file. In addition, the amount of electronic evidence we are piling on top of that paper mountain means that if you are not already thinking of Top Technology #2 – Electronic Document Management – you should be.

Often, the biggest mistakes firms and businesses have when migrating to an electronic document management system is trying to make that system function “exactly” the way their paper system worked. Traditional “paper capturing” systems – such as filing – captured documents at the end of the paper-processing stream. Electronic document management systems, on the other hand, need to capture documents “during” the stream of documentation.

Step One: Capturing Documents
Review the points in your firm where documents enter the “stream.” Analyze the information that you add to documents along the way, and examine those times when documents can be captured.

Once the documents are inside your network, additional display technologies are necessary to replicate the necessary paper views. Most new laptops (including tablet PCs) automatically have support for a second monitor. Desktops in my office have two monitors, and sometimes even three monitors to support paperless technologies as well as allow us to view Microsoft (MS) Excel files and enter tax preparation data at the same time. MS Windows XP will natively support up to 10 monitors.

Other tools to capture documents include small desktop scanners and copiers that double as printers and copiers. In my office, one person has a small Strobe sheet-fed scanner to capture documents at his desk. A secretary has a Toshiba flatbed scanner at her desktop to capture documents quickly and easily. When older copiers needed upgrading, we chose one that could copy, print and scan. In fact we’re planning to add a color copier, scanner and printer to the network so we can capture color documents.

Step Two: Organizing
Once you’ve captured documents, now what? Here comes part two of this process – organization. It’s no wonder that Google, Microsoft and Yahoo! are coming out with desktop search tools; the immense size of today’s hard drives dictates that we must find faster ways of locating documents we’ve placed on our computers. While desktop searches help on local systems, true firm-wide document management systems are required to solidify electronic filing structures.

Here are a few points to consider when looking at these systems.

• They are based on standard database systems. If the document management system uses a database that is proprietary, you might find yourself locked into that system for filing and be required to tie your long-term storage needs to that system. If the database is a traditional SQL-based system, the database may be easier to upgrade to alternative document management systems.
• Determine if you can restore documents at the exact level you need. If you have a need to restore individual level documents, ensure your storage and backup methodologies include these processes.
• Start building in the need for storage and backup technologies. Storage Area Networks (SANs) are just one way companies are backing up and storing data.

Typically, many firms and businesses initially have an aversion to a “less paper” office because they feel paper is a more durable media. However, paper fades and documents stored in non air-conditioned storage areas begin to suffer damage at a much faster rate. Therefore, once the analysis of the company’s processes is complete and the document imaging is implemented, most find they end up using older files more efficiently than before. Having a tested backup and restore process in place is just good business whether you are already imaging your documents or just getting started.

Step Three: Digital or Scanned
The next decision is whether to add the option of OCR (optical character recognition) – a process of capturing the document digitally versus scanning.

Document management systems can be set up without OCR procedures and still be searchable and the data discoverable merely though the good use of organization and file name structure. However, some firms and businesses need the additional search ability that OCR processes include. Keep in mind that this technology is not without its costs, both in terms of pricing of the products and the file storage space needed to save the “converted” documents.

Step Four: Storage Considerations
Finally, be prepared to exponentially increase your hard drive storage needs in the next few years, and investigate technologies to more permanently store electronic data. Large hard drives are becoming extremely inexpensive and the increased use of Serial ATA (SATA) drives are driving down the costs on the more traditional SCSI and solid state storage media.

For firms and businesses already into document management, 2005 is the year to review where you are, and if there are any changes to implement in your current systems. For those not yet doing document management, what are you waiting for? You should seriously look at becoming less dependent on paper ... and save at least one tree.

About the Author
Susan E. Bradley, CPA/CITP, MCP, GSEC, is a principal with Tamiyasu, Smith, Horn and Braun in Fresno, Calif. She writes an ongoing column, Ebitz, for AICPA’s InfoTech Update newsletter and is chair of the AICPA's Top Technologies Task Force.

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