document storage

Document Storage And Data Extraction Needs For Accountants

In the world of accounting, document handling and management are important. Everything is now highly digitized and it’s now necessary for accounting firms to adjust to an ever growing world of digital data.

To do so, there are many best practices and standards that all accounting firms are encouraged to follow for dealing with document and financial data.

Successful Document Storage Options For Accounting Firms

Major accounting resource sites like AccountingToday.com, for example, emphasizes the importance for document management in the accounting industry by outlining factors for one important area: document storage.

In addition to security and liability among other factors, they place emphasis on file type, and in particular, the PDF format for archival purposes, on their list of factors for successful document storage.

Floppy Disk Saved Files

And this is a great point that needs to be highlighted. As a PDF solutions company, we know the format’s excellent and effective capabilities for archiving. Whether clients decide to password protect the file or selectively lock down what users can do with the content, your clients’ financial data is faithfully and securely available to only you and your intended recipients.  

The Double Edged Sword: Archiving And Data Extraction

However, this also sheds light on one important point about the PDF format. The data that is accurately preserved can also be extracted just as faithfully. This is the PDF format’s main strength for accountants. 

Accountants will often find that PDF documents are not only used at the starting and end points of the process, but also at points in the workflow that come in between–during  the data analysis step.  But as you can imagine, this part of the process, which deals with data that’s already in archival format, can be the number one cause for backlogs in the workflow.

And accounting companies are highly aware of this. The accountants at JMPA (Jewell Muller Professional Accountants), who specialize in tax and accounting services in South Africa, for instance, struggled with the issue themselves.

PDF Bank Statements Need Editing

JMPA provides accounting solutions to small businesses. Being a technology dependent company, they rely on software tools to get their work done. However, they need to work with and edit the data stored in archival PDFs first.

CEO JMPA

“Almost all our documents are PDF bank statements that need to be imported to our accounting software,” explains JMPA CEO Cassie Muller. “Before we can do that, we have to edit them in Excel, which is where we had our first obstacle.”

Their search for a PDF converter solution led them to Able2Extract, which helped them speed up the management of PDF documents.

In our case study with JMPA, we took a close look at how data extraction played a factor in their document management process and what it meant for the company overall. JMPA highlighted some of the benefits of using Able2Extract:

  • Reduced processing time by 85%
  • Saved 80% of money on wages
  • Improved delivery time to clients by 90%
  • Converted 7 months’ worth of bank statements in minutes

In sum, knowing how your accounting company works with all kinds of documents is one of the keys to success. Because being efficient with your document process has an effect on the rest of your firm’s efficiency, be sure to explore all of your software options for storing and extracting document data. With JMPA, they were able to resolve the one factor holding them back with a single PDF converter tool.

Read the full JMPA case study and learn how they managed to improve their document management system in detail .

Why Accounting Firms Need A Document Management System

Performing Manual Calculations

For any financial services company, a client’s financial data is at the heart of its operations. As such, it becomes crucial for them to invest in a document management system and all the tools and processes it entails.

Underscoring this fact, CPA Practice Advisor outlines a number of pros and cons for having a paperless office with a document management system in place. As expected, the benefits presented by the pros outweigh, by far, the struggles imposed by the cons.

A document management system can drastically improve the workflow for accounting firms and clients alike.  

For one thing, it saves business costs on paperwork. Businesses and customers can reduce paper dependency, ultimately making documentation, transactions and records easily accessible online.

For another, it allows companies to automatically create an electronic audit trail that can keep documents accurate and in compliance with industry standards. Document workflows can be set up and incorporated into daily processes, making routine procedures easy for accountants.

However, one important caveat to keep in mind is that simply having a document management system in place doesn’t mean your workflow is fool-proof. Depending on the dynamics of your clientele and your document processing routine, your needs can shift and change from day to day. In fact, companies that incorporate document management systems can still struggle.

CFO Momentum
Momentum, a renowned financial and credit services  company, is one such example. They keenly  felt the affects of a document management system that quickly became inadequate. “Our working volumes grew exponentially and then came to a point where the manual process no longer made any sense,” Riaan Verbeek, CFO of Momentum explains.

Turning A Flawed Document Management System Around

As one of the leading services in the area of financial advising, insurance, investment and health, Momentum had client data already digitized in the PDF format. But there was a weakness in their document management system.

The company quickly found that they needed a dedicated PDF to Excel converter in order to improve, complete and streamline their document management system.  They needed to efficiently extract the vast amounts of PDF data to Excel and handle the data generated by the accounting department, as well.

Improving Document Management With Able2Extract

With this in mind, the company added Able2Extract to their document management system to fill that need.  A case study on Momentum shows that the company’s workflow did nothing but improve from the addition. You can read the full Momentum case study here. Successful highlights from the case study include:

  • Saved $30,000 annually
  • Saved 100% of their time on information assembly
  • No training required to start converting PDF to Excel
  • Experienced accurate data conversions

By making an adjustment in one troublesome area in their document management system, Momentum was able to start processing and handling their client data more effectively.  

Implementing a document management system can do wonders for the productivity of accounting firms. But that system must be flexible enough to change with your daily activity and routine.  

If your firm has a system already set up, make sure it has a tool for every step in the process. Tailor the workflow and make adjustments as needed. If the addition of one PDF converter can improve Momentum’s metrics, think of what it can do for your firm.