Process documentation done right

Process documentation plays an important role in providing transparency and traceability for your digital tax documents.

Like a company handbook, process documentation enables auditors and tax authorities to get a clear picture of your accounting processes and helps you to identify potential areas of improvement. A meticulous documentation also allows you to quickly ascertain where resources are being used inefficiently.

In this article, we explain the following:

• What is process documentation?
• Why is it so important for accounting?
• What parts does it include?

In addition, we show you how an enterprise content management (ECM) system can help you to implement process documentation smoothly and securely, and make your end-to-end workflows more efficient.

Process documentation is a comprehensive description of organizational and technical processes, particularly for electronic documents.

It maps tax-relevant digital business processes, data and filing systems of a company. It is important not only to consider the technical aspects, such as software manuals and system descriptions, but also the business processes that involve IT systems.

This duty to create documentation exists in order to provide third parties, such as tax authorities, with clear traceability during a tax audit with regard to digitally archived data, i.e. its creation, indexing, protection against loss and counterfeiting, and reproduction.

The following provides a sample of process documentation and describes the five essential components of process documentation:

1. General information

• Information about your company's business
• Tax obligations
• Responsibilities
• Change and versioning concepts
• Local conditions relevant to accounting processes

2. Process description

• Documentation of the software, hardware and IT infrastructure used
• Description of the interfaces between the systems
• Presentation of the technical processes used for electronic accounting

3. System description

• Specifications and/or manuals for the hardware and software components used
• Server and workstation hardware
• All programs used and their interfaces

4. Operating documentation

• Description of the system usage in daily operation
• Presentation of the security rules
• Documentation of the operating procedures in normal and emergency operations
• Data backup measures
• Management of user accounts

5. Internal control system (ICS)

• Usage regulations for accounting-relevant IT structures
• Strategies for login and access rights
• Implementation of functional separations
• Data collection and transmission controls
• Protective measures against data corruption

There are different forms of process documentation:

Replacement scanning

The process documentation for replacement scanning relates to the orderly digitization and subsequent destruction of paper documents in the company. It includes key aspects such as:

1. Clear process documentation: Indicates who is responsible for digitization and when the documents will be digitized.
2. Legal basis and compliance: Takes into account the legal framework and strict compliance with these regulations.
3. Document destruction: Determines who is responsible for the destruction of the documents and when this will take place.

This procedure ensures that replacement scanning is carried out in a legally compliant manner in the company.

Document filing

The process documentation for properly filing documents helps to increase authenticity and includes the following main aspects:

1. Process organization of inbound documents: Clear description of how a document is processed in the company and where it is stored.
2. Responsibilities: Defines responsibilities for processing, checking, and accessing documents.
3. System description: Describes the software solution used for document storage and the measures taken to secure against unauthorized access.

This type of process documentation supports transparency and traceability of processes, and helps to ensure documents are filed in a legally compliant and secure manner.

Cash management

The process documentation for cash management includes the general organizational description as well as other relevant aspects such as:

1. User documentation: Ensures availability of point-of-sale instructions and operating instructions for cash management.
2. System documentation: Describes the hardware and software used for cash management.
3. Operating documentation: Defines the responsibilities and access rights in connection with cash management.
4. Security measures: Description of the security measures for cash management and access authorization.

This ensures clear and traceable documentation of all relevant aspects of cash management.

An enterprise content management solution can play an important role in optimizing your process documentation. It simplifies the documentation, management, and archiving of all documents:

• Document management: ECM enables the centralized collection, storage and management of the documents required for process documentation – including process descriptions, security measures and archiving concepts.
• Versioning and track changes: ECM systems track changes in documents and maintain older versions, which is useful when documenting updates to processes and systems.
• Access control and access rights: ECMs enable the definition of document access rights so that only authorized persons can access the process documentation and relevant information.
• Workflow automation: ECM systems automate workflows for creating, reviewing and approving documents in process documentation in order to ensure documentation is accurate and up-to-date.
• Search and retrieve: An ECM solution with a powerful search function makes it easier to find relevant documents and information quickly.
• Archiving and storage: ECM systems support the archiving of documents to meet retention requirements and ensure that process documentation is done properly.
• Integration: An ECM solution can be integrated seamlessly into the existing IT infrastructure and accounting systems to ensure seamless documentation and management of accounting processes.

Overall, an ECM solution can make a significant contribution to improving the efficiency, transparency and compliance of process documentation:

Doxis is a next-generation ECM platform that provides the following key benefits for process documentation:

1. Improved efficiency: Seamlessly implement and manage workflows using Doxis ECM technology to reduce manual effort and increase your overall efficiency.
2. Compliance and traceability: Automatic logging of activities, changes and workflow steps facilitates compliance and ensures comprehensive traceability.
3. Scalability and flexibility: As a future-proof application, Doxis can be easily adapted and scaled to meet changing business requirements.

Optimized process documentation is essential for companies. The integration of an ECM solution opens up a wide range of possibilities for an efficient, transparent and legally secure documentation solution for business processes, security measures, and archiving procedures.

The process documentation using ECM not only enables

• traceability and auditability of accounting and business processes, but also increases
• the efficiency and compliance with the requirements of prescribed guidelines.

Last but not least, optimized process documentation forms a solid basis for smooth cooperation with auditors and ensures the trust of internal and external stakeholders in the proper management and storage of company documents: