Automating Document Generation Beyond Engagement Letters

Automating document generation beyond engagement letters

A recent trend in business process management involves generating, routing and automating documents. Automating document generation allows you to convert the existing types of documents your firm frequently uses into automated forms. When combined with business process management, automating document generation and routing can provide your firm with greater consistency, save a significant amount of time, and reduce risk.

Engagement Letters: The First Step in Document Automation

Consider an audit engagement letter. An audit workflow typically involves obtaining a signed engagement letter as one of the earliest steps in the project. What usually happens is the engagement team receives the client information and gets to work, assuming the signed engagement letter will come in before fieldwork is complete. This strategy backfires when the firm realizes they’ve delivered the client’s financial statements but they don’t have a signed engagement letter on file.

That scenario might not be a huge risk if the audit is for a recurring client with whom you have an excellent relationship – a quick reminder will usually convince the client to sign the letter. However, the fact remains that an engagement letter is your contract. It’s how your firm manages client expectations, pricing, the scope of work and liability.

Using a business process management tool to create engagement letters and ensure the firm has the signed agreement before work begins protects both the firm and the client.

Document Automation Generation Beyond Engagement Letters

Engagement letters aren’t the only documents a firm produces. Every day, firms send responses to IRS notices, prepare valuation reports, send client correspondence and generate other types of documents. Regardless of how complex those documents are, leveraging logic-driven creation tools and incorporating them into your business process management solution can give them the attention they deserve.

Consider your firm’s shift into consulting and advisory services. Many firms have evolved from tracking billable hours to value pricing. Their clients may be on a subscription model, and they send master services agreements (MSAs) rather than engagement letters. This is an excellent area to improve your processes and look for ways to leverage automation.

MSAs can flow through several departments. Your business development team sends them out. Partners, managers or other firm leaders have oversight and need to sign the contract on the firm’s behalf. Clients need to sign them before the firm begins work. Without automation, the process of agreeing to an MSA can be drawn out and painful. A template might be saved on a shared drive. Someone in business development downloads a version of that template, which may or may not be the most current, and amends the terms depending on what was agreed with the client. Then they send it to a partner for review, which may require a few back-and-forths. Then it’s emailed to the client for signature and possibly more amendments. Once signed, the client mails or emails the MSA to the partner, who hopefully lets business development and the service team know it’s arrived and saves it to the firm’s document management system.

There are a number of friction points and bottlenecks in this process, including duplicated work, version control risk, and wasted time. If this process can be streamlined and automated, everyone involved can save time and reduce legal risk.

Even a seemingly simple document can end up being complicated if its creation and routing aren’t addressed in your firm’s business processes. So consider all of the engagement letters, contracts, and other correspondence your firm puts out each day and how the process can be streamlined and automated.

If you’re interested in learning more about how Amelio supports automating document generation, schedule a demo with our Director of Business Development.