Tax season is looming. Client documents are stacking up on desks, filling inboxes, and overwhelming your team. Sound familiar?
You're not alone. For most accounting practices, client document management threatens productivity, particularly during peak periods.
Now, imagine a different scenario. One where client documents are automatically sorted, categorised and processed as they arrive. Where key data is extracted for you. Where your team can focus on advisory work instead of paper-pushing.
This is the alternative reality for accountants using Intelligent Document Processing (IDP).
Let’s take a closer look at how IDP software can transform how accountants handle client documentation. We’ll explore:
- The hidden costs of poor document management for accountancy firms
- The IDP document processing workflow
- How IDP improves document management for accountants
- Key client document types that accountants can automate with IDP
- Navigating tax season with IDP software
- Building a more profitable practice with Intelligent Document Processing
The hidden cost of poor document management for accounting firms
Standard client document management software typically focuses on a single document type, such as receipts or invoices. This leaves other critical files – like accounts, information requests and working papers – outside the system.
Due to these silos, many team members waste hours searching for information, switching between tools, and transferring data. Up to 40% of UK accountants spend half their time on manual tasks.
Besides using billable hours for admin, poor client document management carries other hidden costs, including:
- Risk of entry errors with manual data processing
- Higher risk of staff burnout, particularly during tax season
- Frustrated clients when it takes a long time to locate information
- Missed HMRC deadlines, resulting in fines
These costs can compound over time, eroding profitability.
In contrast, dedicated document management software for accountants can handle multiple file types in one system, enhancing your entire practice workflow.
The IDP document processing workflow
OCR (Optical Character Recognition)
OCR technology converts printed and handwritten text from physical documents into machine-readable digital text. For accountancy practices, this means extracting data from client tax forms, financial statements, receipts, correspondence and information requests without manual transcription. Unlike basic OCR tools, modern IDP systems can handle poor-quality scans, unusual fonts and faded documents with remarkable accuracy, ensuring that financial data is captured correctly.
Pre-processing
The best IDP systems automatically enhance document quality before processing information. This includes straightening skewed images, removing visual noise, adjusting brightness and contrast, and identifying document boundaries.
For accountants, this pre-processing step improves recognition accuracy and reduces exceptions that would otherwise require manual intervention. It’s particularly useful when onboarding clients and capturing anti-money laundering (AML) documents such as driving licenses or passports.
Classification
Once documents are digitised and enhanced, IDP software automatically identifies and categorises them by type. It then routes them to appropriate workflows based on content analysis. This intelligent classification eliminates the manual sorting process that consumes significant staff time, especially during document-heavy periods like tax season.
Data extraction
After classification, IDP extracts specific data points from each document. For tax documents, this might include income figures, deductions and tax identification numbers. Automated extraction eliminates manual data entry, significantly reducing processing time. Modern IDP systems can extract data from complex tables and multi-page documents while maintaining relationships between related information.
Secure archiving
The final step in the workflow is secure document storage. Digital documents are automatically filed in standardised locations with consistent naming conventions. Files can be retrieved when needed while maintaining compliance with document retention requirements specific to accounting.
This end-to-end workflow transforms document processing from a manual burden to an automated, efficient system.
How IDP improves document management for accountants
Accurate and efficient data capture
IDP systems dramatically improve document capture quality, even with challenging source materials. The technology precisely reads both typed and handwritten text from various document types. For accounting practices, this means fewer document rejections and less time spent rescanning or requesting clearer copies from clients.
DocuWare’s IDP software cuts data entry time by 95% when capturing information with intelligent indexing.
Time saved from automating pre-process steps
Traditional document preparation requires extensive manual handling. IDP eliminates these tedious steps by automatically enhancing document quality, identifying boundaries and preparing files for processing.
Less manual intervention in document sorting
IDP software automatically identifies and classifies incoming documents without human assistance. The system recognises different document types and routes them to appropriate workflows. This intelligent sorting eliminates the manual triage process, increasing staff productivity.
Fewer errors when indexing document data
Manual data entry inevitably introduces errors, from transposed numbers to misread fields and omitted information. IDP systems like DocuWare extract data with accuracy rates approaching 99%, automatically validating information against existing records and flagging discrepancies for review. As a result, critical client and financial data are captured correctly the first time.
Precise document storage and archiving
Beyond processing, IDP software stores digital documents properly with appropriate retention policies. As we’ve already mentioned, with paperless software, documents are automatically filed in standardised locations to be retrieved instantly when needed, for example, in the event of an audit.
For accounting practices, moving to IDP software means reduced manual processing, significant improvements in accuracy, and the ability to handle growing document volumes without proportional staff increases.
Key client document types that accountants can automate with IDP
Accounting practices handle diverse document types, all of which can be managed with intelligent document processing.
| Document category | Examples | Benefits of IDP |
| Accounts | Financial statements, ledgers, reconciliations, management accounts | Extracts financial data for analysis, automatically matches transactions, creates searchable financial history |
| Tax returns | Individual and business tax returns, supporting schedules, income statements, estimated tax payment records | Automatically extracts key tax data points, classifies by tax year and type, intelligent routing to tax specialists |
| Contracts | Engagement letters, service agreements, client contracts, vendor agreements, partnership documents | Tracks contract terms and obligations, extracts key dates and provisions, maintains compliance records |
| Identity documents | Client identification, verification forms, KYC documentation, authority documents | Securely processes sensitive information, maintains compliance with identity verification requirements, links documents to client records |
| Information requests | Client questionnaires, document request lists, tax authority notices, audit requests, confirmation letters | Tracks outstanding requests and deadlines, automatically routes to appropriate team members, monitors response status and completion rates |
| Expense documentation | Receipts from vendors, credit card statements, expense reports and mileage logs, supplier invoices and statements, employee timesheets | Automatically categorises expenses, helps calculate billable hours, maintains audit-ready documentation |
Bringing all these document types into a single, intelligent system creates a unified view of client information.
Navigating tax season with IDP software
Tax season creates the most significant document processing challenges for most accounting practices. IDP takes the pain out of this annual crunch by:
Batch processing client documents
IDP automatically splits and categorises batches of tax documents. This eliminates hours of manual sorting and preparation, allowing teams to focus on tax calculations rather than document organisation.
Extracting key tax information
IDP software identifies and captures critical tax information from diverse form types, eliminating manual data entry and transcription errors. This capability is particularly valuable for complex returns with multiple information sources.
Creating consistent digital files
With IDP, all tax documents are automatically organised into standardised digital client folders, creating consistency across practices and ensuring nothing is misplaced. This systematic approach improves both efficiency and quality control.
Checking for missing information
IDP software can flag missing information or inconsistencies before tax returns are prepared. This preventive approach catches potential issues early in the process. It can also create automatic reminders to submit information, taking pressure off your personnel during peak tax periods.
Build a more profitable practice with Intelligent Document Processing
Intelligent document processing brings both quick wins and lasting value to your accounting practice. When you automate the heavy lifting, you create space for the higher-value work that clients appreciate and are willing to pay more for.
With two-thirds of accounting firms expecting advisory services to drive more than a third of their future revenue, liberating your team from the paper chase is more important than ever.
By managing your client documents through IDP software, you can expect benefits including:
- Direct cost savings from eliminating manual data entry and processing time
- Increased workload capacity as a result of process automation
- Improvement in staff satisfaction and retention
- Better client experiences through faster response times and fewer errors (DocuWare improves approval time by 70-80%)
Investing in IDP software empowers your skilled professionals to focus on the services that drive practice growth and deepen client relationships.
Learn more about document management.
