How to Transition to Electronic Document Management

Should a Company Switch to Electronic Document Management?

We are all accustomed to paper-based document management: it's clear and convenient. Why invest in changes if everything works quite well already? But if you stop to think and calculate how much time is spent on manual processes, it becomes clear that manual processes are quite time-consuming and hinder business development.
Moreover, to continue working effectively under quarantine conditions, many employers are transitioning employees to a remote work mode. Of course, this is only possible if employees can perform their work duties from home and their presence in the office is not mandatory.

As a result, many companies have faced difficulties:

• inability to receive and sign primary accounting documents on time
• breach of terms stipulated in contracts
• payments may be delayed.

However, we can approach all problems as potential opportunities, and this is a good chance for any company to increase the level of process automation and switch to electronic document management. This will also allow management to promptly receive information necessary for making business decisions.

Which Regulatory Documents Govern Electronic Document Management?

The electronic document management process is based on the electronic processing of accounting and analytical information, which includes the formation of primary electronic documents, an automated database, and the procedure for information processing.

Currently, enterprises submit tax reports electronically, but maintain primary documentation on paper. However, the latter can also be processed electronically, as stated in official documents such as:

• Law of Ukraine No. 851 "On Electronic Documents and Electronic Document Management"
• Article 9 of the Law of Ukraine No. 996 «On Accounting and Financial Reporting in Ukraine»
• para. 2.1 of Regulation No. 88 "On Documentary Support of Accounting Records" allow for the creation of primary documents in electronic form.

What are the Main Advantages of Electronic Document Management?

The benefits that businesses gain from switching to electronic document management are truly significant:

• it is the fastest way to obtain primary accounting documents
• a new level of security and transparency, as all stages of document processing are logged and stored, and an electronic signature protects important information from third parties
• the ability to significantly save time, which is a valuable resource
• optimization of employee work and increased efficiency
• reduced paper consumption and karma points for environmental awareness.     

On our YouTube channel "Biznesuy" you can watch an interesting and useful video about electronic document management, and it will only take 5 minutes.       

How to Choose an Electronic Document Management Service: M.E.Doc, Vchasno, or Document Online

Electronic document management is, in fact, easy. The first step to its implementation is an electronic signature (EDS). Therefore, a company's transition from paper to digital should begin with providing EDS for authorized persons who will act as company representatives. An EDS carries the same legal force as a handwritten signature and confirms the authenticity of data. Moreover, after the abolition of seals on documents and the introduction of administrative liability for demanding them, verifying the origin of a signature on paper is quite difficult.

For the automation and streamlining of all document-related processes, there are electronic document management services. The most popular services on the Ukrainian market are: M.E.Doc, Vchasno, and Document Online.

All electronic document management services allow you to:

• sign electronic documents
• exchange them between counterparties
• maintain reporting.

What's the difference? Only in monetary tariffs and the individual needs of the company.

Service M.E.Doc

1. The most popular software product for electronic exchange between counterparties.
2. You can integrate it with 1C:Enterprise, SAP, Microsoft Dynamics CRM, OneBox.
3. You have the option to connect additional modules, namely:
   • automation of salary calculation and accrual, and HR records
   • registration and exchange of excise invoices and waybills (TTN)
   • instant submission of reports to regulatory bodies electronically
   • VAT accounting - a full cycle of work with tax invoices (PN) and adjustment calculations (RK) is carried out electronically
4. Prices for the "M.E.Doc" program depend on the client's needs:

• • the cost of the program for legal entities starts from 1700-2200 UAH/year
  • the cost of the program for individual entrepreneurs (FOP) from 340-670 UAH/year
  • the cost of the MODULE "State. VAT Accounting" program from 800-1200 UAH/year.

The cost of consultation and setup of the "M.E.Doc" computer program at the client's office is 490 UAH per 1 hour.

Service Vchasno

1. You can integrate the service with your ERP system (1C/BAF, SAP, MS Dynamics, etc.), any CRM system, and a personal account on your website.
2. You will have 24/7 access from any device.
3. You can choose between 3 tariffs:
   • «Starter» tariff - up to 4 employees, free of charge
   • «Professional» tariff - 5 or more employees, cost 7,500 UAH/year
   • «Integration» tariff - work with your accounting system, cost 1.8 UAH per document + 2,000 UAH/year for the integration gateway.

Tariffs will be changed from June 1, 2021. They also plan to add a «PRO+» tariff, the cost of which is 25,000 UAH, with up to 75 users and an unlimited number of documents.

Service Document Online

1. You will be able to use the services from any stationary or mobile device with Internet access, regardless of the operating system installed on them.
2. You will be able to integrate the service with 1C accounting systems - exchange primary documents, register tax invoices and adjustment calculations, and submit reports to regulatory bodies.
3. There is an option to choose a free «Demo» package - the number of documents is limited to 10.
4. You can consult with a specialist for free.
5. The cost of other packages depends on the number of documents, but there is a discount system.

What is the «Diia» Portal and What are its Capabilities?

It is also possible to sign an electronic document online. For this, you can use the document signing service launched on the «Diia» portal in April 2020.

What are the advantages of using the “Diia” portal:

• when establishing communication with a counterparty, a document can be signed online in a few minutes
• the signed document remains only in your browser and is not transmitted to the «Diia» portal, which guarantees you complete security
• thanks to the encryption process, only an authorized person who possesses the secret key has access to open the information
• the «Diia» portal has an EDS verification function, meaning you can get information about all signatures in the file, the person's name, signature time, certificate number, etc.

Therefore, nothing prevents the use of primary electronic accounting documents in accounting and their submission to state bodies for verification.

If your company wants to switch to electronic document management, but doesn't know how to do it correctly and quickly, contact us and we will be able to help you successfully implement this project.