four steps for controlling source documents

charge less for more efficient methods. reward your clients.

by penny breslin
it’s not just the numbers

permissions are key. in our company only three people have a connection to their local c drive from our managed server. also, we can track who is logged in, from where, how long and what they accessed.

more: why you need standard naming conventions | procedures require regular revisiting | why federated search matters | tips for getting clients started on bos | the best tech for your team and clients | marketing? know your goals first | eight things to stop doing now | you don’t have to do everything | why ai is not the enemy
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if documents are in our cloud storage, the permissions to download them can be turned off. viewing is done from within the document storage app. nothing is perfect. they can still take a screenshot but we attempt to keep things as closed as possible while still allowing for work and efficiency.

case study: the importance of permissions

last year we were contacted by a firm for outsourcing. the partner who was overseeing us was somewhat miffed when she received a slack message saying we could not do our work. we had no access to source documents. we could access the cloud storage system they were using, but there were no files.

it turned out that an employee who had quit them that week had downloaded quite a few client files then deleted them before leaving for good. she not only deleted client files but apparently internal informational documents too. i wondered how long she had been doing this. and what kind of a client this was going to end up being.

sometimes you are not ready for external employees. having permissions on everything would have perhaps saved them this grief, but then i thought, they would have had to pay attention. some do, some don’t, all should. if you cannot insource client work efficiently and securely, you really cannot outsource it very well either. that ex-employee was not a team player, yet she was given the keys to the whole system.

obtaining the source documents

obtaining client records is a process that includes educating the client on the most efficient way and then rewarding the client when they do it this way. the most efficient way is, when possible, removing the client from the process. asking for documents keeps you, your client and your team in the old way of doing things. here’s what we’ve found works best.

create a checklist for this in the service level agreement (sla). your sla should clearly define what source documents you need to receive and when you need to receive them, and the method for getting documents to you. give the client several options while always pointing out the most efficient. they will often take the least efficient; however, newer startups with a younger ownership rarely opt for anything on paper. some options include:

• portal upload/download. set up a portal with a private “vault” for each client. smartvault is easy and economical but there are many other options. be sure to establish specific naming conventions for files and have a pre-designed file structure so all your clients have the same look on your screen. make sure your staff and your clients know the naming structure and assign checking on this to the preparer-level member of the team.
• bank feeds in the accounting system. xero, kashoo, freshbooks, wave, accountingsuite or qbo can all link to bank and credit card companies for real-time sharing of data. that takes care of data entry, so now you only have to reconcile.
• read-only access to the client’s bank accounts via online banking. this type of access allows you to download statements without the ability to disburse funds. this access is changing and some banks are just not going to do this. the client may still have to reconnect the bank account when it fails. and it will fail. in your sla, point this out and have them check the box next to their acceptance that they will respond to requests for relinking within a specific time frame. if you are on a shared service provider, you can access the read-only login for the bank from the shared server and save the statements to the managed server. use this option only if your managed service provider does not charge for storage. data storage is cheap.
• require client’s vendors to email all invoices to a specified email address. if it is a large vendor, often they will already have a portal for invoices and payments. add the access to the client-specific procedures. smaller vendors that use cloud accounting software have the ability to email invoices from their accounting software. set up a dedicated email for the receipt of accounts payable. for example, ap@clientdomain.com with a bcc to your internal bookkeeper manager. you’ll then receive the invoice at the same time the client receives the invoice. as invoices from new vendors come in, capture the full vendor contact and account info and make sure the accounting file is updated. this task is assigned to the preparer-level member of the team.
• use bill.com, meliopayments, ledgersync or relayfi.
• traditional mail. on receipt, a preparer-level person or an admin person will scan and upload documents to the portal or application service provider drive. charge more for this methodology. consider discontinuing services to clients who will only work with you in this manner. i do not even consider taking on clients who will only snail mail.
• email. remind the client that this option is highly insecure for anything with account numbers. charge more for this method.

define your turnaround time, feedback responses and pricing based on the options the client has selected. the more efficient, the faster the turnaround and the lower the price. create a sliding scale of prices and let your client know why. your time is as valuable to you as theirs is to them. but if you give them good, clean, up-to-date data, they will reward you.

have your staff do the begging for small documents. make sure they enter notes – your customer relationship management or workflow should keep track of outgoing emails to clients. run reports to see which clients are moving quickly in adopting newer technologies. gift them for this. get rid of the slow adopters among both your clients and your staff who will not adhere to the sla and checklists. get more of the fast adopters. educate yourself and your team continuously.

document the method of capture in the sla. once you and the client agree to a method of capture, add it to the sla and save it to the shared drive or client vault on the portal. make sure your staff reads each sla and signs off on the acceptance and understanding of the work. you might also want to add a link to the sla in the client procedures subpage to the contact record in your crm.

next, get to work making sure you are updated on the latest communication options that work with your accounting software. use the introduction of that latest and greatest technology as a means to have happy, forward-thinking conversations with your clients.

pick a method and stick to that one method. avoid a blended system of half emails and half client upload as it will allow the client to default to the easy option. you will end up training your client and your team on exceptions to the rule. this is the opposite of where you want to go. the bos retains all financial documents and by using the managed server or a collaborative document management system, you now have all the source documents at your fingertips. this is far better than having the documents on local pcs, in filing cabinets or stacked on the desk. find a dms with combined workflow or a workflow with a document storage capability.

posted on march 7, 2023