Accounting technology / Glossary / Document management for accountants

What is document management for accountants?

Definition

Document management for accountants is the software and process an accounting firm uses to collect, store, organise, share and retain client documents: source records, tax forms, signed engagement letters, working papers and final accounts. It usually includes a secure client portal, e-signature, folder templates by client and year, permissions, search and retention rules.

Also calledaccounting document managementDMS for accountants

Compare the softwareBest practice management software for accounting firms →All 11 practice management vendors →

Core parts: Portal, storage, e-signature
Not the same as: Document capture
Category: Practice management

How document management works in an accounting firm

Firms used to keep documents on a file server or a standalone document management system. Many now use the document module inside practice management software, such as TaxDome or Canopy, so files sit on the client record next to jobs and messages, with a portal for clients to upload and sign. Document management is separate from document capture: capture tools such as Dext read invoices and receipts and post the data to the ledger, while document management keeps the files themselves. Retention rules set how long files are kept: UK companies must keep accounting records for six years from the end of the financial year they relate to, and the IRS generally expects records supporting a US return to be kept for three years after filing, longer in some cases.

Common questions

What is the difference between document management and document capture?+

Document management stores and shares the files. Document capture reads the data on them, such as supplier, amount and tax, and posts it to the accounting software.

How long should accounting firms keep client documents?+

As long as the law and professional rules require, which varies by country and document. Common minimums are six years for UK company accounting records and three years after filing for most US tax records; many firms keep files longer under their own policy.

Do accountants need a client portal?+

A portal replaces email attachments, which are hard to track and less secure. It gives clients one place to upload, sign and download, and keeps a record of what was shared and when.