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How to get rid of the filing cabinets - part 2
How?
There are 5 important considerations:
- Acquire
- Organize
- Backup
- Access and share
- Activation
1. Acquire: In today's digital age we know that all documents are prepared by a computer. If we can acquire data from the source, then there seems little purpose in converting it to paper and then back to data again. This is the typical process in most businesses, particularly in the accounting department.
2. Organize: Digital documents arrive in several ways: supplier invoices and contracts can be attached to emails; bank and credit card transactions can be downloaded from web-sites; and of course pdf. files may be already stored on a hard disk. We need to be able to
easily store and access them.
3. Backup: The initial concern for storing valuable documents in cyberspace is that they will be lost, perhaps forever. Nothing could be further from the truth with today's cloud based storage. In fact it is likely that copies of the document are stored in several safe places. Who would do that with paper?
4. Access and Share: Being able to simply type in a keyword and finding all the relative documents is a large time saver. Being able to do this from your mobile device is even more interesting. Imagine checking your health insurance policy while vacationing in Mexico. Easily sharing your business documents with you auditor or tax accountant saves time for you and him resulting in lower fees.
5. Activation: This is the process of attaching or transferring data and images to where they are needed. Purchase invoices attached to accounting entries supporting the fixed assets balance, restaurant bills supporting expense report claims, employee photos and T1 forms on payroll records, timesheet data on customer invoices. The possibilities are increasing every day.
Easy!!!
I tested several products such as Snapscan, Dropbox, SmartVault, ShoeBoxed and others. Only one product managed both scanned and digital documents effectively:
Neat Scanner
I reviewed the Neat software in my last article but that is only part of the solution as Neat also supplies the scanner.
After being satisfied that the software does a pretty good job at managing my digital files I decided to invest in the compact, portable scanner. They have several models that can handle high volumes but I only wanted to test a unit that my clients could connect to a computer where the mail is opened. It plugs into a USB port and does not need it's own electrical source. Neat will sell it for $199 US but it can be found on the internet for as low as $100.
When the hardware arrived I was pleasantly surprised at how robust and compact it was. Setting it up was a snap. Just attach it to the USB port on your computer, although they now have a model that only needs electricity! Scanning is simple. Select the target file and as soon as the unit detects paper it will make a sound signaling you to start the scanner by pushing a button on top or selecting the icon in your software.
It will take a few seconds before the images are processed and go into a 'review' status. I soon learned to just scan repeatedly and do the review later. As mentioned in Article 1 the OCR software does not always find the correct name and dollar amount but this is easily correctly during the review.
Now the payback. Your accountant can be given access to this file to keep your books up to date and file your tax returns. The files can be exported directly into QuickBooks. If you file expense reports the data can actually prepare that report for you with all the attached digital documents. You may be receiving this because I scanned in your business card and the data was exported to Constant Contact.
Determined to practice what I preach I picked up all the paper on my desk and passed it through my little scanner. This included my car and home insurance policy and a copy of the lease for my daughter's residence at College. It took a bit of nerve to throw out those documents (otherwise I am double filing) but I felt like I just stepped into the New Age.
In the next article we will cover how to get rid of the company chequebook. This is a must have for all businesses. Check it out at our website under 'Articles'
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