It’s not uncommon for science fiction to become science fact – witness mobile phones, x-rays, space travel, the internet, biometric scanning, virtual reality and the paperless office.

Admittedly, the latter is unlikely to materialise any time soon. But the trend towards less paper and more electronic communication and records is growing, as rising automation and falling hardware prices combine to bring the dream of a paper-free work environment tantalisingly close – and some accountants are already reaping the benefits.

As well as the more obvious benefits, such as reducing the amount of space required for document storage, a paperless office should result in less time being wasted on manual and repetitive tasks, such as creating audit binders, retrieving files and travelling between offices. Workflow can be streamlined and work products made more consistent, while access to work papers by multiple users is made easier. Similarly, better electronic communication can improve collaboration among staff members, both onsite and from non-office locations, and make tracking of time and billing more efficient.

But the transition is not simple or straightforward. The requirements of even the smallest accounting firm are too complex for any single application to take care of everything. So many firms take their first conscious step in this direction with a document management system.

The available options include systems designed specifically for professional services firms, such as SingleView from MYOB, plus applications from document management specialists such as Invu and Version One, which are in use across a wider range of industries.

Opting for a product that is part of a bigger family of applications – all aimed at the accountant – arguably gives you better integration, but this isn’t the only factor affecting a firm’s purchasing decision. BHG Chartered Accountants considered a number of alternatives when it decided to augment its document management, then opted for a product from Invu.

BHG is using the system for accountancy, audit and taxation, and plans to include corporate recovery at some point in the future. ‘We needed a system that would be simple to use, reliable and enable us to retain records online,’ explains Steve Griffiths, the firm’s practice manager.

According to Griffiths, the benefits and efficiency gains have outweighed the cost. ‘Any member of staff can locate documents with minimal effort, rather than needing to resort to hard copy files. This means we have lower administrative requirements and can work far more efficiently, providing clients with a much higher level of service.’

Dains, a 12-partner firm with five offices, has experienced similar benefits with SingleView. ‘With the insolvency department in Lichfield, tax in Burton and audit in Colsehill, we used to have a lot of files floating about,’ explains Chris Windsor, audit and IT partner.

‘It was usual for more than one person to need access to the same file at the same time, or struggle to find something if a partner was absent. Now, if someone is out and we get a client query, we don’t need to scurry around in other people’s offices looking for pieces of paper.’

The firm’s attempts to move away from paper-based systems did not stop there. Dains has also opted for paperless audit, with the help of CaseWare (distributed in the UK by Credence). Most of its audit files are now electronic and the firm no longer creates a paper copy of the audit file.

Instead, it has designed its own electronic audit pack that presents information in a way that is more relevant to the client, and that complies with legislation.

Windsor explains : ‘The client now sees lots of graphs, schedules and an analytical review, while the statutory accounts are at the back of the pack.’

The system has also helped Dains to take a more focused approach to each individual audit, an experience shared by other firms. ‘Unquestionably, the paperless approach focuses the mind at the planning stage of the assignment,’ says David Morris, corporate manager at Wittingham Riddell.

‘It makes you focus much more on the specifics of individual clients. Each test is selected and devised at the planning stage and has to be individually answered and signed off at the fieldwork stage. There are no all-encompassing brackets, as with the paper-based approach.’

Morris feels this has enhanced the quality of the firm’s audits. ‘Because you’re not using a standard set of programs for all jobs, you achieve a more efficient and streamlined audit, with proper tailoring of the audit program and a tighter focus on areas of risk.’

The firm has been using CaseWare at two of its five offices for more than three years and, with time, less obvious benefits have emerged. ‘We have found that the system also promotes computer efficiency, increases knowledge and furthers computer development and familiarity within the department.’

IT competence can have significant and beneficial knock-on effects, because it makes staff more open to the possibilities of other software applications. Dains, for example, has been able to extend its paperless ethos into numerous areas, without the aid of specialist software, simply by making the most of tools already available.

‘I encourage staff to make use of the Briefcase feature in Windows Explorer,’ says Windsor. ‘It helps us to minimise the need for paper files and keeps all of our digital files synchronised, avoiding duplications and errors.’ It also fits perfectly with the paperless ethos and it doesn’t cost anything – it’s an integral part of Windows XP.

When Windsor meets with a client, he creates a Briefcase for them on his laptop, then copies the files he needs into it from the office network. Then he updates the original files on his return to the office. Briefcase keeps a record of the origin of every file that he copies into the client briefcase on his laptop, then after a few mouse clicks it automatically updates them to reflect any changes.

‘We’re also taking a paperless approach to accounts production,’ says Windsor. ‘We’ve created an Excel workbook and any background documentation is scanned into the system.’

In fact, all incoming documents are opened and scanned before being forwarded to electronic in-boxes. They are briefly stored and then destroyed.

‘Because the firm is 80 years old, paper is a major problem for us. We’ve got cellars full of it. We wanted to stop people squirreling it away. Most of the back-up data is shredded after six months,’ Windsor says.

Although the paperless approach has helped Dains reduce the amount of paper it needs to store, actual paper consumption has not decreased.

‘We were warned by our copier supplier to expect paper use to go up, and it did,’ says Windsor. ‘You can’t re-use documents from the electronic files in the same way as you can with a hard copy. People print them for one-time use then shred them, so we have a tendency to use slightly more paper than before.’

Lesley Meall is a freelance journalist

Screen presence

In addition to making electronic storage more affordable, the falling price of hardware has started to affect the way in which accounting practitioners use software and systems.

‘In the US, it’s not unusual to find accountants with two or three screens on their desk,’ says Gary Boomer, an accountant who advises practitioners on their use of technology.

‘Cost is no longer an inhibiting factor,’ adds Mike Francis, the CEO and co-founder of The Practice Engine Group, ‘so multiple screens are a given in a lot of US practices.’

The possibilities for saving time and money are endless. It’s easy to imagine how much easier self-assessment might be if you had more than one screen . ‘If you’ve got two screens, you can use one to show your tax software program, while the other displays this year’s source documents,’ says Boomer.

Some accountants are now preparing returns using three screens, so that they can see at a glance the tax software, the source documents and the completed tax return from the previous year. ‘I’ve also seen desks with a fourth screen on them,’ says Boomer, ‘because you can turn it around to face the client and they can review their completed tax return without the need for a printout.’