Documentation: What, Why & Where?

Updated: Jul 23


There is no doubt that where the virtual world kicks in, the significance of documentation kicks higher. The importance of technology know-how has significantly increased and to keep a check on your documents, it is pertinent to look out for platforms that can effective manage your documents. To deliberate about these platforms, let’s first look into what documentation is and why is it so important?






THE WHATS AND WHYS?


Every transaction leaves behind an evidence or a paper trail. You go to a restaurant and take the receipt after the payment. Such receipts are documents, which you might need for future actions, like payment of your taxes. For important transactions, it is necessary that such evidences are profiled and documented. Such documentation helps identify who has acted on the transaction and what were the other credentials involved.


Looking at it technically, accountants take into account these paper trails and trace every transaction through source documents. If “A” company writes a cheque for payment of electricity, the cheque along with the electricity receipt becomes a source document for the said company. Such source documents act as proof that yes, you paid for your electricity for “X” amount to “Y” person. Such a source document identifies four important factors, namely, the parties, the payment, the purpose and the date of the transaction.


Collection and organisation of such documents is important to maintain a full-proof track record for your company. They help establish the credibility of your transactions and come in handy for all kinds of transaction, personal as well as professional. Only with the help of such documentation, loopholes in transaction may be figured out effectively. Most importantly, these documents are beholders of accountability.


TIPS FOR DOCUMENTATION


Following are some tips which one may look into to ensure that documentation takes place effectively.


1. Check for double copies

People often tend to create similar copies of the same document and this not only adds to the load of varied documents on your device but also cause headache when you need the most recent version of the document. If you make revisions to your document, make sure that you delete the older versions.


2. Standardize the name

Choose a standard name for different kinds of document which makes it easier for you to identify the document by just looking at titles. For example, for your electricity bills for different months, your name can go like, ElecBill_Jan_2021, ElecBill_Feb_2021 and so on.


3. Check for the retention period

It is necessary that you document your receipts but for how many years. Check for compliance on retention of your documents. If an agency cannot seek 10-year old electricity bills, do away with them.


4. Look at the long run

Documentation might look like a tedious task at first but it saves much more time for you in the long run. More importantly, it will help you detect frauds and legal non-compliance and resultantly, save you humongous amount of money.


5. Use the right technology

With the declining significance of hard copy files and bundles of papers, it becomes essential to have technology that keep your soft-copy documents organized and secured. More importantly, to keep the documents online so that all employees can work at it simultaneously becomes crucial. The next section deals with this in an elaborate manner.



IMPORTANT APPLICATIONS: THE WHERE


The times are such that every person you go to suggests one or the other application for a specific purpose. Following is a very small list, one may not even call it a list, of what all applications you must engage with, especially for documentation.


First comes in the list, HubDoc. This application is a savior for 365KPO and many people engaged with accounting. It has Xero as its parent organization and with this application, you can import all documents for accounting into the platform and it automatically detects relevant data via OCR technology. They further convert these files into a digital form, which is very convenient to be exported. The accountant then gains access to these exported files, which makes it easier for the accountant as well as the client. This application automatizes the whole process and keeps every receipt in check. You can explore the application here.


Microsoft Share Point is another application with which 365KPO had an amazing experience. It is an application developed by the well-known Microsoft Corporation. Simply stating, it help you transform your workplace by providing a web-based virtual platform to work together virtually. Most importantly, the features of Microsoft Office are integrated in the application itself which helps your colleagues work together and organize it simultaneously virtually.


For example, “A” in Punjab and “B” in Gujarat can work on the same document to draft an agreement and suggest changes to each other by working in track changes mode or marking comments for one another in the document itself. You can create folders and upload documents on one platform, which is accessible to all. You can learn more about the application here.


Next comes in line, Rubex by Efile Cabinet. This application has done wonders for organization in 365KPO. This application will help you manage your files better and further, even acts as a sharing portal. It also has several features like e-signature and flowcharts to oversee your workflow management. It also helps in dual purview of screen along with several important templates for different kinds of documents. Most importantly, sharing of documents is secured and safe. Further, it has different services for different kinds of industries. You can learn more about the application here.


365KPO also utilizes the services of Filevault. This is less of an application and more of a feature which allows you to encrypt your files. However, this feature is available only for MacOS. This feature also enables you to lock your data and make it password protected so as to avoid any unauthorized access. You may also look into other encryption platforms which suit you best.


CONCLUSION


Conclusively, it is discretionary what platform suits best for you. For accounting, we strongly believe that these applications will not disappoint you. However, some universal tips mentioned above apply to all and can be extremely beneficial for efficiency of your business.


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