2007 CPA Firm Intranet Evolution
by Roman H. Kepczyk, CPA.CITP (March 20, 2007)

The Association for Accounting Administration has been driving intranet adoption and usage since their groundbreaking 2001 survey and their Guide to CPA Firm Intranets which led the way for firms to understand what an intranet can do for them.  AAA Paperless surveys in 2003, 2005 and 2007 found that more than two-thirds of firms had intranets, which shows they are a staple technology in firms today.  While most firms use intranets to post digital information that was difficult to find on the network or previously in a paper/physical format, leading firms are driving tomorrow’s intranets to become robust workflow and knowledge management tools and they are leaning on Microsoft tools to do it.

To understand the next evolution of intranets, it is helpful to review the timeline leading up to today’s intranet applications.  In the 1990’s, firms transitioned workflow from external service bureaus and manual workpapers to PC-based tools, including running time and billing on their networks.  Any information not kept in a specific accounting firm application was stored in file drawers or saved haphazardly to the network, where they were difficult to manage and locate.  Firms with big budgets built Lotus Notes intranets that could effectively manage mass volumes of data, but this technology was not cost effective for small to medium size firms.  With the explosion of Internet technology in the late 1990s, firms were finding that web site interfaces were easy to use, highly customizable, and cost effective to manage all of this dispersed data.  Internal firm websites called intranets took off as a way to accumulate and access all of the data not managed in specific accounting applications.  Microsoft came out with a web site creation tool called FrontPage for under $200, and by 2001, 74% of surveyed AAA firms with an intranet were using it because of its ease of use and integration with other Microsoft applications.

Jump to 2007 where Microsoft has discontinued the FrontPage name and evolved the application to an Internet web design tool called Expression Web, and at the same time, an integrated intranet and collaboration tool called SharePoint 2007.  While SharePoint has been around since 2003, it has only been in the past year where it has received significant attention with the CPA firm community with developers creating “canned” SharePoint intranets and individual firms optimizing their workflows as well as integrating more features within Microsoft Office applications. 

While audit workflow is well managed by audit document containers and tax workflow is being automated by the tax vendors by integrating due date and document management, little has been done to automate firm administrative workflows.  SharePoint incorporates a workflow designer product along with their InfoPath technologies so that forms and templates can be created and the data captured on these forms capable of being shared with other applications.  Imagine having a web-based information request where people can subscribe themselves or a vacation approval form that is routed automatically to the appropriate manager and placed on a calendar.  SharePoint can improve collaboration on documents by tracking changes made and notifying others when there is a change.  Think about a final financial statement that is locked down and having the partner in charge notified if someone accesses that document.  SharePoint has also added dynamic search capabilities that allow you to almost “Googlize” your network.  What if you could search every document on your network by keyword, approximate dates, and specific type, while at the same time monitor tasks associated with these documents and track the latest versions with alerts to specific individuals? SharePoint has enhanced these capabilities, which is leading some firms, particularly smaller ones, to believe that Microsoft may be able to meet their document management requirements.  Finally, what if you could easily create an Internet-based portal to allow your clients to securely transfer files to and from your firm? SharePoint was designed to facilitate all of these processes and innovative firms are taking the time to train their information technology and administrative personnel on the capabilities.

Information management and workflow are critical for today’s CPA firms and having the right tools will define future success of these firms.  Firms need tools that are easy to use, integrate with their existing applications and are cost effective.  As virtually all firms are Microsoft shops, the next logical intranet step is to learn and use SharePoint.

Roman H. Kepczyk, CPA.CITP is president of InfoTech Partners North America, Inc. which works exclusively with CPA firms to implement today’s digital best practices.