Often, accountants run into problems transferring client information for 2 main reasons.  First, current bookkeeping software files like QuickBooks or Peachtree are notorious for becoming larger and larger with each fiscal year.  As such, these files quickly become too large for you to send or receive them through traditional email providers like Yahoo, Hotmail, or AOL.  However, file exchange portals are specifically designed to transfer very large file sizes with ease.  

Second, in the event that these bookkeeping files are small enough to send via email, many clients are reluctant to do so because of the lack of security.  File exchange portals require users to log on to an encrypted third-party server, ensuring a security level comparable to that of online banking (B of A, Chase, etc).  Last year, Massachusetts and Nevada were the first states to pass legislation requiring the encryption of sensitive information transfers between accountants and their clients: a move that will, no doubt, be copied by other proactive states. 

So, how does this translate into increased productivity and improved client services?  For one, a file exchange portal is an important step towards a paperless office.  Being able to access documents online saves money on mailing costs, but more importantly, it saves you time.  Many tax professionals find themselves hounded for old tax returns, but with online storage, old returns can be quickly uploaded and stored on the portal to be retrieved at your clients’ convenience.  Also, with a portal capable of large file exchange your clients are no longer inconvenienced by having to copy bookkeeping files to a CD or flash drive to get them to you.  They can simply upload them for you to access when you want.  

Some web-developers that work within the accounting profession provide a file exchange portal as part of their basic services, while others require them to be purchased as a separate service.  Additionally, many document management systems provide a client portal module.

Taking into consideration their ease of use and potential to streamline your existing practice, a file transfer portal is undoubtedly a smart addition to your site.