Client records

[frazzled]

I hope i did this right - I am a poll virgin! (that sounds REALLY dirty!) 

[Jack from Ohio]

Moving toward not keeping ANY paper.  Digital is too easy.  Archive takes up 1 cu.ft of space.  Total security of 10 years of records only requires a fire safe about 3 ft high.  The only thing in the client's folders are demographic info and special notes.  This is the second year of my moving this way.

[jklcpa]

I went totally paperless starting with the 2013 individual returns, and still with paper for workpapers and returns for my business clients (not sch c's). I did keep pdfs of business returns also for easy access of those returns too.  I haven't decided if I'll go paperless for the businesses also, but probably not.

[DevM]

Totally paperless since 2008..and loving it of not losing any client papers...

[Catherine]

I have two file drawers of client docs.  Went mostly-paperless a couple of years ago hallelujah.  What is in my files is pre-conversion notes (slowly getting shredded as more years pass), engagement letters that haven't been scanned, and my scribbled notes for each year that I don't think are worth the effort of scanning.  The client folders also have phone numbers under the names, in case I have to make a quick call before my computer wakes up, has its coffee, reads the paper, and decides it's OK for me to try to use it.  Or when I have too many programs/windows open to want to bother with yet another, just to find a number.  Notes on bookkeeping clients stay on paper, as I lug those off with me to the client's location.

[SaraEA]

I answered "completely paperless" but actually keep a few paper files.  Most are estates that are on fiscal years but the income docs are calendar years so I have lines drawn all over the place.  I wouldn't know which year to file them electronically anyway.  Some paper files contain brokerage statements that predate the modern world.  I keep them in case a client does sell I might be able to come up with some basis (the brokerage sure won't).  Too many pages to scan plus I may never need them.  One folder has nothing but my research notes for a client who keeps coming up with the weirdest things I never heard of. I also have a huge file of correspondence, brokerage statements, foreign currency translations, etc. for the client who had the OVDP issues.  I did scan all of it, but I wouldn't feel comfortable shredding the originals just yet.  Is it just me?  Normally I feel very secure with my electronic files.

[Jack from Ohio]

I have reduced from 4, 4 long drawer filing cabinets to 1, 4 drawer cabinet and after this season, there will only be three drawers used.  2 for current clients, one for former clients.

 

Micro-shredded paper is perfect mulch in the garden.  Start with everything not wanted pulled or killed, and 2 inches deep or more will stop 95% of anything growing.  It also holds moisture and over the winter just disappears.  My garden looks like it has snowed in it.

[jklcpa]

I answered "completely paperless" but actually keep a few paper files.  Most are estates that are on fiscal years but the income docs are calendar years so I have lines drawn all over the place.  I wouldn't know which year to file them electronically anyway.  Some paper files contain brokerage statements that predate the modern world.  I keep them in case a client does sell I might be able to come up with some basis (the brokerage sure won't).  Too many pages to scan plus I may never need them.  One folder has nothing but my research notes for a client who keeps coming up with the weirdest things I never heard of. I also have a huge file of correspondence, brokerage statements, foreign currency translations, etc. for the client who had the OVDP issues.  I did scan all of it, but I wouldn't feel comfortable shredding the originals just yet.  Is it just me?  Normally I feel very secure with my electronic files.

 

I still have prior to 2013 all on paper, and like you, I will always have permanent files on some clients, especially for the businesses and trusts. I also have some broker stmts too.

I will be cleaning out another year's archive records out of storage soon and shredding it into confetti.   

[Jack from Ohio]

I will be cleaning out another year's archive records out of storage soon and shredding it into confetti.   

Use it in your garden!!  The ultimate recycling!!

[David W Ristau CPA]

All files have been paperless since 2006.

Current year client docs are returned to clients from the ONE lateral drawer used for them during tax season.

All paper in office is micro-shredded.

Less space in recycling bin....

[michaelmars]

I pdf everything but keep paper for the 3 open years so I can refer back more easily.  I work from paper and have the 1040 clients data scanned in after the return is done.  Some business clients I have going back many years since issues do pop up and the 11x14 paper is hard to scan but I have been paring this down each year.

[clay]

What have you folks found to be the best scanners, and software to manage the scanned documents?

[MDEA]

I use Fujitsu fi-6130 very fast and good. Have not found a good software yet that is why I am not 100% digital.

[Medlin Software, Dennis]

For me, paper. 1. The requirements put on me by the various tax agencies are unacceptable, should I choose only electronic records. 2. I only keep what I am required to, for no more than the required time. What you are not required to keep (voice ot Jack Webb here) can and will be used against you...

[Catherine]

What have you folks found to be the best scanners, and software to manage the scanned documents?

 

My favorite scanner was a Kodak i1120 (not made anymore) that would feed *anything* without mucking up, simplex or duplex, because of the super-vertical paper path.  Also TWAIN compatible.  It died suddenly then revived itself several months later (when I turned it on one more time before pitching it... go figure).  But it now has to be run through Adobe Acrobat; its own software doesn't play well with Windows 7.  

 

Now we use a Fuji ScanSnap S1500.  Also scans simplex and duplex.  Its own software works just fine, and it can also be run by Drake's document manager software (which makes choosing the file location and naming a bit more streamlined).   Not a TWAIN scanner, though.  The feeder is a bit fussier than the Kodak; not as many pages can be loaded at once (more of an angle; not quite so vertical a path).  

 

The Fuji has to run from a specific computer.  The Kodak could run on a network (rah, TWAIN).  It's far from my desk and I find that annoying, so I don't use it that much right now.  My assistant, with the direct connection to the Fuji, does almost all of the scanning at this point.  

 

If you want a truly networkable scanner, those are heap big bucks compared to the Fuji and its ilk.

[Lion EA]

Fujitsu 6130 with some letter at the end.  Upgraded from ScanSnap.  So far scanning to a Clients folder and then Name and then Year with no special software.  Hope to return to CCH's Scan & Flow if I can get my misbehaving computer replaced.

[David W Ristau CPA]

@ Clay:

I have used several Visioneer models over the years.

I'm currently using a Visioneer Patriot 680 as my primary scanner and also Xerox Documate 3220 as secondary scanner.

I scan to PaperPort Pro version 12.1 and refuse to upgrade to later version because Nuance removed the proprietary .max file type from their software.

PDFs are handled by Adobe Pro version 11.

I currently have about 50 GB of scans on disk and backed up to cloud via BackBlaze and CrashPlan.

Client info is kept in Alphabetic sub-folders based on last name with subfolder years.

[Catherine]

For ANYONE who scans docs -- I recommend Adobe Acrobat as an adjunct.  You can get brand-new, registerable, but slightly older versions on ebay for a small fraction of the newest-from-Adobe price.

[Lion EA]

And, some scanners come with the full Adobe Acrobat, so check if you're buying a new scanner anyway.  Or, your software may have a good Adobe add-on for organizing tax files.

[B. Jani]

I use Kodak Scanmate I-1120 with paper port professional 14. works perfect for me and everything is saved as PDF.

[Terry D EA]

Working on the totally paperless thing. I just want to know if scanning a 8879 or 8867 is considered an originally signed form. If you archive them after 3 years by scanning and storing digitally now that would seem to be okay.

[Margaret CPA in OH]

As the instructions for Form 8879 state, the taxpayer signed (handwritten or electronic) form may be transmitted to the ERO in person, or by U.S. mail, private delivery service, fax, email or an internet website.

The vast majority of my signed 8879's are faxed to me. I have an electronic fax system and save the form in pdf format. If needed, I could print out the form but typically do not. Those that are mailed, I do keep in a file for at least 3 years then scan and discard along with the engagement letters for that year.

[FreedomTaxed]

Trying to go paperless is a big battle. As a manager and not an owner, I can't implement all that I'd like to. Trying to implement an appointment scheduler in software was a real agony; one of the owners is "spastic" on the computer mouse and keeps screwing things up in the program. But we can't go back to a paper schedule... it's far too slow, or too inflexible, and of course you can't search it in anything less than "way too long" time.

 

I suspect there's this generational thing going on, and until that generation finally dies off and lets us complete the computerization paradigm, it just can't be done.