CONSTRUCTION Accounting ARTICLE-Contractor goes paperless with IWA systemTarget Audience: Construction Industry Professionals, General Contractors, Business Owners, Project Managers, Contractors, Construction Accountants A general contractor in a large urban/suburban market was looking for ways to streamline her operations. The tough economy had driven home the point that the more efficiently she ran her business, the better she could control her cash flow. Always a technologically minded person, the owner had been pondering the idea of going paperless but hadn’t found the right tool to help her do so. When she asked her CPA for ideas, he mentioned imaging and workflow automation (IWA) systems. What Is an IWA System?With an IWA system, key documents are scanned into a central Web-based storage site where even the most far-flung employees can access them. The contractor’s CPA explained that many business owners, including contractors, have primarily been using IWA systems to streamline their invoice and accounts payable processes. Employees can scan invoices as soon as they arrive, meaning paper never even gets into the system. (The originals are often discarded, but doing so would likely have audit implications, so the CPA promised to discuss this part of the process with the contractor later.) Scanning invoices into the system can reduce data entry errors, prevent lost, misfiled or buried paperwork, and speed up the approval process. Plus, employees spend less time digging through file cabinets that may not be close to their desks. Why Buy an IWA System?IWA systems convert documents into digital images that anyone with a Web-enabled computer — including your estimating and accounting staffs — can pull from the central storage repository. By improving workflow, an IWA system can reduce the cost of document retention. For starters, the owner wouldn’t need as much storage space. She also wouldn’t have to use the mail or couriers to route documents. And she might be able to reduce or eliminate late payment penalties. In fact, she might be able to take advantage of prompt payment discounts, her CPA noted. Of course, there are risks to IWA systems, he warned. If the contractor rushed into the purchase, she might overspend on a solution that, ultimately, would provide an unsatisfying return on her investment. In addition, she’d need to seriously consider internal controls and fraud deterrence measures regarding the system, in particular procedures dealing with access, review and authorizations/approvals. Who Needs Paper?After weighing the costs vs. benefits, and carefully selecting a product that fit her needs, the general contractor implemented an IWA system. She did encounter some initial employee-training challenges. But, once clear of those speed bumps, the IWA system did help reduce the amount of paper floating around her offices and speed up many document-related processes on the job site. Find out how our expertise in construction accounting can add value to your business. Email us or call us at 1 (888) 875-9770. related linksConstruction Newsletters & Articles |
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