What is a Document Management System for Accountants?
It’s well known that most accounting and finance practice owners have a major goal: to grow their businesses. These owners have also realized that their client’s needs have changed, and they want new services like financial reporting. On top of all this, the ever-present issue of recruiting and retaining top talent seems to come down to how technologically advanced a firm is. Navigating these challenges and creating a profitable firm comes down to the tech you use. Many accounting professionals power their businesses with document management systems and client portals. Let’s review why below.
What is a Document Management System (DMS)?
At its core, a document management system (often abbreviated as DMS) allows you to store documents. There are paper-based systems – like files and filing cabinets – as well as software that’s on-premise or hosted in the cloud. This article is focused on cloud-based document management software for accounting professionals.
What are the Benefits of a Cloud-Based DMS for Accountants?
A cloud DMS doesn’t require users to purchase physical equipment for document storage. Instead, you use the DMS software over the internet via a web browser or mobile app.
A cloud-based document management system stores your documents in a hosting environment. A third party is responsible for maintaining the physical storage facilities and ensuring the safety and security of your information. As a user, you need to upload your documents and files to the cloud storage platform, and the software provider will take care of the rest.
Why Should Accountants Use a Cloud-Based Document Management Software System?
1 – Have complete ownership and knowledge of your document management
You might be thinking: “Well, if my documents are stored on a cloud server managed by a software provider, how will I know where everything is?” A high-quality DMS vendor gives you total control over how your documents are organized. SmartVault also comes with a client portal system that lets you conveniently work with your clients in real time.
2 – Access the system from wherever you are
Modern, high-quality, remote DMS software has fully embraced the popularity and necessity of being able to work anytime, anywhere post-pandemic. With a cloud-based DMS, you and your clients can access the system no matter where you are in the world, as long as there’s an internet connection.
3 – Top-of-the-line cybersecurity measures and protection
The beauty of having a DMS operated by a vendor? They have IT working round-the-clock to ensure your information is safe. They offer the latest cybersecurity measures, like multi-factor authentication (MFA). They will regularly backup and maintain the system, so you do not have to worry about it. Finally, your data is encrypted both while it’s in transit and at rest. Take SmartVault, a leader in DMS and online client portal software. Here are just a few of the advanced security measures they use:
- Manages and maintains customer data in a compliant cloud environment
- Enables two-factor authentication login to our software by default
- Requires a strong password to access data
- Automatically logs users out due to inactivity on the platform
- Uses bank-level encryption
4 – Quick to set up and easy to maintain
Cloud-based systems are ready for use as soon as you purchase a subscription or a plan. There’s little requirement for upfront equipment purchases or IT installations. You’ll be up and running in just a few minutes. In addition, the software provider and cloud hosting vendor are responsible for maintaining and repairing all data storage hardware and equipment. As a user, you’re free from such extraneous expenses, which saves you money and resources.
5 – Robust automation capabilities
Automation of routine tasks saves hundreds of hours for accounting practices that have a structured document workflow. For example, if your firm constantly exchanges sensitive documents with clients instead of sending or receiving them through emails, you’ll be able to put an end to this risky practice. The best cloud-based document management systems offer secure file-sharing capabilities through a private client portal, which removes the manual steps during this process. Plus, it’s way more secure than emails.
6 – Better cost predictability
The last key benefit of a cloud-based document management system is its cost predictability. Because many systems use a subscription-based pricing model, you can easily estimate your selected plan’s entire year’s costs upfront. It’s much more transparent and predictable compared to traditional solutions.
SmartVault Document Management for Accountants
Streamline how you work, collaborate with clients more easily, and reduce costs — through one integrated document management and client portal solution. Watch the video below or schedule a demo to learn more.