How your accounting firm can go paperless

Published Wednesday 17 June 2026

Table of contents

• Why going paperless matters for accounting firms
• Common challenges when going paperless
• How to go paperless: a step-by-step plan
• Tools that support a paperless practice
• Maintaining a paperless workflow
• Strengthen your paperless practice with Xero
• FAQs on going paperless

Key takeaways

• Going paperless reduces overhead, speeds up document retrieval, and frees your team to focus on advisory work rather than filing and chasing paper.
• A structured transition plan, starting with a paper audit and ending with ongoing digital workflows, prevents the productivity dip that derails many firms.
• Tools like Hubdoc for document capture and Xero Practice Manager for workflow management make it practical to run a fully digital practice.
• IRD accepts electronic records, so there's no regulatory barrier to going paperless in New Zealand, provided you retain records for at least seven tax years.

Why going paperless matters for accounting firms

Paper-heavy processes slow your practice down in ways that aren't always obvious until you eliminate them. When you shift to digital workflows, the efficiency gains compound across every part of your firm.

Digitised documents are searchable, shareable, and accessible from anywhere. That means less time hunting through filing cabinets and more time delivering the advisory services your clients value. For firms supporting remote or hybrid teams, digital records make it possible for everyone to access what they need without being in the office.

The financial case is straightforward too. Printing, storage, and physical filing costs add up. Reducing paper cuts those expenses and reclaims office space you can put to better use. Your clients also benefit from a smoother experience when they can upload receipts and invoices digitally rather than dropping off shoeboxes of paperwork.

There's an environmental angle as well. Reducing paper consumption aligns your firm with the sustainability expectations that many clients and staff now have. It's a practical change that signals a modern, forward-thinking practice.

Common challenges when going paperless

Knowing the benefits is one thing. Getting there is another. These are the most common obstacles firms face when transitioning to paperless workflows.

Employee resistance: Some team members prefer familiar routines. Rather than mandating the change, involve your staff early. Explain the practical benefits, ask for their input, and give them enough time to adapt. People are more likely to embrace new systems when they've had a say in shaping them.

Document volume: Years of accumulated paper can feel overwhelming. You don't need to digitise everything at once. Prioritise current-year documents and frequently accessed files, then work backwards methodically.

Cost concerns: Scanners, software subscriptions, and the time your team spends on the transition all have a cost. Weigh these against the ongoing savings in storage, printing, and time spent on manual document handling. For most firms, the payback period is shorter than expected.

Data security: Moving to digital records raises questions about data protection. You'll need secure cloud storage with appropriate access controls, regular backups, and clear policies for handling sensitive client information. Strong security practices are non-negotiable when client financial data is involved.

Choosing the right tools: The range of available software can be paralysing. Focus on tools that integrate with your existing accounting platform, handle the document types your firm deals with most, and offer a realistic learning curve for your team.

Compliance with NZ record-keeping rules: IRD requires businesses to retain records for at least seven tax years. The good news is that IRD accepts electronic records, provided they're accurate, accessible, and backed up. You can find the full requirements on the IRD record-keeping page.

How to go paperless: a step-by-step plan

A structured approach prevents the productivity dip that derails many paperless transitions. Work through these steps at a pace that suits your firm.

1. Audit your current paper usage

Before you change anything, map out where paper enters and moves through your practice. Track which documents you print, receive, store, and send over a typical two-week period. This audit reveals the highest-impact areas to tackle first and helps you set realistic goals for your transition.

2. Choose your digital tools

Select tools that fit your existing workflows rather than forcing your team to adapt to entirely new systems. A document capture tool like Hubdoc lets clients upload bills and receipts from any device, while cloud storage keeps everything secure and searchable. Look for tools that integrate directly with your accounting software to avoid creating new manual steps.

3. Set a timeline

Pick a realistic start date and share it with your team. Avoid peak periods like tax season. A phased rollout works well for most firms: start with one document type or one client group, then expand once your team is comfortable with the new process.

4. Digitise existing documents

Start with current-year files and documents your team accesses regularly. Use consistent naming conventions and a logical folder structure so files are easy to find later. If you have a large backlog, consider whether older files need scanning at all, or whether you can digitise them on demand as they're retrieved from storage.

5. Train your team

Invest time in proper training rather than expecting your staff to figure things out on their own. Cover the tools, the filing conventions, and the workflows you've established. Short, focused sessions work better than marathon training days. Make sure everyone knows who to ask when they get stuck.

6. Establish ongoing workflows

Going paperless isn't a one-off project. Set up processes that keep paper from creeping back in. This includes client-facing changes like asking clients to submit documents digitally, and internal habits like scanning any paper that does arrive on the same day. Xero Practice Manager can help you build these workflows into your team's daily routine.

Tools that support a paperless practice

The right combination of tools makes paperless workflows practical rather than aspirational. Here's what to consider for each part of your practice.

Cloud accounting software: Your accounting platform is the foundation. Cloud-based software gives your team access to client data from anywhere and eliminates the need for local file servers and manual backups.

Document capture: Hubdoc captures bills, receipts, and invoices from multiple sources and extracts the key data automatically. Clients can upload documents via their phone, email, or scanner, which reduces the receipt-chasing that eats into your team's time.

Practice management: Xero Practice Manager handles job tracking, time recording, and invoicing in one place. When combined with digital document workflows, it gives you a clear view of work in progress without relying on paper job sheets or printed checklists.

Client management:Xero HQ provides a single dashboard for managing your client portfolio. You can monitor client health, track tasks, and communicate with clients without printing reports or posting letters.

Digital signing: E-signature tools remove the need to print, sign, scan, and post documents. They speed up engagement letters, authority forms, and any other documents that require a signature.

Client communication: Secure messaging platforms and client portals replace email attachments and posted documents. They keep communication organised and create an audit trail that's easier to manage than a filing cabinet full of correspondence.

Maintaining a paperless workflow

The transition is only half the job. Keeping your practice paperless requires ongoing attention and consistent habits.

Set a regular schedule for processing incoming documents. Whether it's daily or twice a week, a consistent routine prevents digital clutter from building up. Assign responsibility so it doesn't fall through the cracks.

When you onboard new clients, set the expectation from the start that you work digitally. Walk them through your preferred submission methods and explain why it benefits them: faster turnaround, fewer lost documents, and easier access to their records.

Review your workflows periodically. Tools evolve, your team grows, and client needs change. A quarterly check-in on what's working and what isn't keeps your paperless systems efficient rather than letting them become another source of friction.

Strengthen your paperless practice with Xero

Going paperless is one of the most practical steps you can take to build a more efficient, modern practice. Xero's partner tools, from document capture to practice management, are built to support firms making this shift.

Join the partner program

FAQs on going paperless

Here are answers to some frequently asked questions about going paperless for accounting and bookkeeping firms in New Zealand.

Is it legal to keep only digital copies of financial records in New Zealand?

Yes. IRD accepts electronic records as long as they're accurate, complete, and accessible for the required retention period. You don't need to keep paper originals once you've created a reliable digital copy. It's worth having a documented process for how you capture and store digital records in case IRD requests evidence of your record-keeping practices.

How long does the transition typically take?

Most firms complete the core transition in three to six months, depending on the volume of existing paper and the size of the team. The initial setup, choosing tools and establishing workflows, usually takes two to four weeks. Digitising the backlog is the most time-consuming part. Many firms find it practical to run paper and digital systems in parallel during the first few months.

What's the best way to get clients to submit documents digitally?

Make it as easy as possible. Give clients a simple upload option like Hubdoc's mobile app or email forwarding. Set expectations during onboarding and follow up with a brief guide showing them how to submit documents. Most clients appreciate the convenience once they've tried it, especially when they can snap a photo of a receipt rather than posting it.

Do I need to keep paper backups after digitising documents?

Not in most cases. Once your digital copy is accurate and properly stored with appropriate backups, you can securely destroy the paper original. The exception is any document where the original has legal significance beyond its content, such as certain signed contracts or certificates. When in doubt, check with your professional body or legal advisor before destroying originals.

What tools do accounting firms need to go paperless?

At a minimum, you'll need cloud accounting software, a document capture tool, and secure cloud storage. Most firms also benefit from practice management software to track jobs and deadlines, an e-signature platform for client-facing documents, and a secure client communication portal. The key is choosing tools that integrate well with each other so you're not creating new manual steps to replace the old paper-based ones.