These days, accountants have a lot that they need to deal with in regard to tax documentation. There are huge amounts of paperwork which are all governed by extremely strict regulations, and yet they are still under pressure to be able to access any necessary information quickly.
This is why it is so important to have an effective system that can improve efficiency, reduce errors and ensure compliance with any applicable regulations. Here, we look at some of the best practices for managing, storing and retrieving tax documents to help accountants deal with them more efficiently.
Blog Contents:
The importance of organising tax documents
Tax is an extremely important subject, and when dealing with it, there is no room for error.
Meticulous document management is therefore vital, as it enables quick access to the relevant files when they are needed by the client or HMRC. Having a good system in place will also reduce the risk of misplacing any sensitive information and can help support compliance, both with HMRC and other authorities.
One of the biggest issues that accountants must deal with is the amount of paper clutter that this creates.
There can be huge amounts of paperwork to sift through and save, which can be extremely challenging when using outdated storage methods. This can also make it extremely difficult to locate any specific files quickly which can mean you are less efficient and appear less professional.
The benefits of document scanning and digitisation
An increasing number of accountants are now turning to digital solutions to help them manage their tax documents more effectively.
By scanning each piece of paper and storing it in a digital format, it is possible to reduce the amount of physical storage that is needed. It also provides faster access to any documents, as a simple search on a computer can retrieve anything that is needed in a matter of seconds.
Another benefit of digital document storage is the ability to enable backups. Most documents are now stored on cloud-based platforms which enables remote access and better collaboration across accountancy colleagues and with the client themselves. This also means that no matter what disaster occurs, whether it is an office burglary or fire it is still possible to access all the documentation.
Best practices for digital document storage
If you decide to opt for the digital storage option for your tax documentation, it is important that you use a reliable scanner. This ensures that all images will be captured accurately and clearly. By using a professional document scanning service you can maintain the quality of the documents and also have the ability to scan hundreds or thousands of documents in a short period of time.
When scanning and saving tax documents, you must make sure that all files are clearly and consistently named. This should include the client name, the tax year, and the document type so that each document can be retrieved as quickly as possible.
You also need to maintain a structured digital filing system to ensure that folders are ordered by year, client or document type depending on what is needed.
By ensuring that all documents are securely saved on a cloud-based server, you can ensure that you are supporting better compliance and data protection. When all documents have been scanned and done no longer required, it is essential that they are shredded in a way that makes them very difficult to put back together – something the typical office shredder cannot offer.
In tax documents, it is important to take a structured approach to allow for better efficiency and improved compliance. Ensuring that all documents are stored safely will also reduce the risk of any losses. Accountants should continually review and update their document management practices and turn to a professional service to help digitise them efficiently and compliantly.
Secure document scanning by RADS
Rads Storage are specialists in secure document scanning services. We create digital copies of your paper documents that are easy to access and allows you to securely destroy the paper copies, helping free up valuable office space!
To find out more about us, or to discuss how our document scanning services can benefit your business, please contact us today and we will be happy to assist you.