Review of Document Management Software — 2006

So if you’re ready to begin the tedious, yet important task of finding
the best solution for your practice, this article provides a review of some
of the key players in the market for document management systems. The information
provided here will provide you with an objective assessment of the solutions
reviewed so that you can screen the candidates prior to performing your due
diligence assessment that is required for what will become one of the most pervasive
applications in your practice.

We will begin with an explanation of the criteria that was applied to the
review of the various solutions, so that you can gain a sense of what we feel
is important in the selection. If you would like additional insight into the
concept of deploying document management in a tax and accounting firm, refer
to my article in the April/May 2005 issue of this magazine.
Seven basic categories were used to review the different solutions: Installation
& Configuration, User Interface, Integration, Training & Support, Workflow
& Document Tracking, Security and Pricing.

Installation & Configuration refers to what it takes
to deploy the system in terms of technology and services. The primary feature
impacting this aspect is whether or not the vendor offers a hosted solution.
If that is the case, then many of the deployment issues are circumvented due
to the fact that you will be utilizing the vendor’s IT infrastructure
and system administration services. In either case, you need to address the
issue of planning and executing the deployment from a workflow integration perspective.

The User Interface aspect broadly assesses the overall usability
of the system from a look-and-feel perspective, including intuitive screen designs,
ease of navigation and key features. There are two key components in the Integration
capabilities. The first is integration with accountant-centric applications
including tax preparation software, electronic workpaper systems and practice
management software. The other is the integration with more generic paperless
tools including MS Outlook, Adobe Acrobat, MS Office, etc. An important factor
in the selection of any technology solution is the quality and availability
of Training & Support provided by the vendor or third-party
affiliates.

As you delve further into this initiative, you will realize the impact electronic
document management has on your workflows. A vendor who can provide you with
assistance beyond the technical setup and configuration of the system and help
you plan for the deployment and how it will be integrated into your workflows
can mean the difference between success and failure. Don’t be penny-wise
and pound-foolish when it comes to leveraging the expertise of the vendor in
your deployment. Their experience and knowledge of “best practices”
can be extremely valuable and save you from making costly deployment mistakes.

The Workflow & Document Tracking features of EDMS systems
are becoming increasingly important. Firms that have implemented document management
systems quickly come to realize that the real value is in the ability to streamline
your workflows through a paperless model. For this attribute, we focus on functionality
that allows you to route engagement-related documents through the firm and track
important engagement data such as due-date monitoring, budget tracking and more.

The AICPA’s 2006 Top 10 important technology issues list is out, and
information security is at the top of the list. The Security
of your digital information is becoming increasingly important. Access to and
the transfer of electronic information is much easier than in a paper-based
system, and that is the core benefit of EDMS. Therefore, you must make sure
you exercise your professional responsibility to protect the security and confidentiality
of your clients’ information. Key security features to assess include
password protection, audit trail of document activity, document checkout tracking
and document authentication.

The final evaluation category in these reviews is Pricing.
The key here is to make sure you are comparing apples to apples. The factors
that impact the overall cost of deployment include hardware, software, technical
services, training services, project management, workflow design and more. If
your price comparison properly accounts for each of these items, you will get
an accurate comparison of the pricing differences. The difference in price between
a hosted solution and an internally deployed system can be misleading. The real
value of a hosted solution is in all the services that you don’t see,
including the technology infrastructure, disaster recovery protection and system
administration. So be sure you take these differences into account.

One additional objective of this review is to determine whether the solution
is designed primarily for small firms of up to 15 users, or as enterprise solutions
designed for firms with more than 15 employees. The distinction is not always
black and white, and in some cases the packages are designed to meet the needs
of both segments of the market. We also identified which packages were designed
primarily as accountant-centric applications or targeted more horizontally for
many different industries.

John H. Higgins, CPA.CITP is the co-founder of CPA Crossings, LLC (www.cpacrossings.com)
serving as a strategic advisor to tax and accounting firms throughout the country.
CPA Crossings has guided dozens of firms through the implementation of document
management and electronic workpaper solutions, as well as other technology strategies.


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