There are so many document management (a.k.a., electronic content management or ECM) software programs available to independent financial advisors that it's difficult to discern which ones fit your own practice. Having several choices might seem like a luxury, yet advisors might be confused by "one-size-fits-all" packages.

For simplicity, we can divide the software into three categories: simple, moderately sophisticated and full-featured. The simplest "out of the box" packages might attract one- or two-person firms. In the more advanced "moderate" category we could include software with features and benefits for small to midsize firms (say, one to ten employees). And full-featured, high-end packages are feature-rich and could appeal to larger financial practices or planners who like software they can customize and integrate with their other programs.

Simple
In the simplest category, we can start with PaperPort (www.nuance.com). The latest version, PaperPort 12 Professional, boasts a faster page-loading time (for PDF documents) with less of a memory requirement. The current version features a "scan now" button for one-click scanning. It has expanded search capabilities and better folder management features. However, this is still an "out of the box" solution with a limited ability to work with other programs (if at all). Still, PaperPort is a good product for what it is intended to do. It is not a full-featured document management solution, but at $199.99, it is affordable.

Microsoft Office offers document management as well. While the program is not as comprehensive as PaperPort, a user can still scan documents (in multiple pages); select and manipulate recognized text; annotate scanned documents and online faxes; and send documents via e-mail or fax. If you own Microsoft Office, you already own the document imaging feature.

Another choice among those products in the simple category is ReadIris Pro version 12 (www.irislink.com/readIris). At $129.99, this program is even more affordable than PaperPort and can handle many of the same jobs. Like PaperPort, ReadIris creates editable and searchable PDF files. The program features optical character recognition (OCR) and can recognize up to 120 different languages. Its makers also claim that it can compress documents to as much as 400 times smaller than the originals for document archiving.

Moderate
In the "moderate" category, we have a host of different software products. Docsvault (www.docsvault.com) is a document scanning and storage product that offers easy access and collaboration with password protection. It has simple document (data) backup and file storage capabilities with one-click CD/DVD backups. The small business package costs $599.99 for five users.

Another product, DocStar (www.docstar.com), long a favorite with the insurance crowd, has broadened its electronic content management (ECM) to address needs in other industries, including financial planning. It's a product often sold by resellers and priced according to what packages they offer, which can include installation and technical support.

DocuShare (www.docushare.xerox.com), offered through Xerox, is a content management package tied to Xerox imaging equipment and offers a number of features that would be attractive to midsize companies.

Yet another product in this category is DocuXplorer (www.docuxplorer.com). One of the advantages of DocuXplorer touted by its makers is its indexing capability, which makes it easy for a user to file and later locate electronic documents.

While the solutions in the more moderately sophisticated category are good for document imaging, file retention, indexing and retrieval, for the most part they are not easily integrated with other products (the one possible exception being DocuXplorer). For example, an advisor would not necessarily be able to create indexed folders for client documents and then tie them to the firm's client relationship management software. For this, you may need to look at the full-featured category.

Full-Featured
Among the most complex programs, there are three worthy of mention. Laserfiche (www.laserfiche.com) is the leader in this category, given its size and quality. Unfortunately, this program has earned a bad reputation as being too expensive because of the system costs. However, the price per user has come down considerably with the Avante and Rio products, bringing exceptional document management tools to even the smallest of financial practices. Laserfiche is offered through a network of value added resellers that provide onsite installation, training and support, and it can be fully integrated with most CRM platforms. The program allows you to access files simultaneously from multiple locations and accelerate account opening for greater production (which eventually can help your firm's profitability as well). The program also offers compliance oversight tools and a work flow management feature and offers exceptional security for the stored documents. Laserfiche not only integrates with CRMs, but also works easily with practice management and portfolio management applications.

Trumpet Inc. (www.trumpetinc.com) is another major provider in this category and offers a fully customized version of WorldOx, a document manager originally developed for the legal profession. The company's Ensemble Process is a full-featured package for financial advisory firms that need a comprehensive digital document system. This package includes document management consultation, WorldOx Software implementation and configuration, optical character recognition (OCR) and development and custom digital document filing (indexing), a fully automated filing process. Trumpet provides exceptional training and support, through remote access and Webinars. The company's Virtuoso product can be fully integrated with many of the more popular CRM programs such as Junxure, Goldmine, ProTracker, Interactive Advisory Software (IAS), Redtail and others. The company also recently designed the product to work with the Family Office Network (www.familyofficenetwork.com).

The major differences between Laserfiche and Trumpet are their size and the type of service they offer. Laserfiche is a huge multinational firm with products and services available for government, the medical field, education and financial services (to name a few), and offers its high-touch onsite services through a network of value-added resellers. Trumpet, meanwhile, offers its products and services only to the financial services industry. Though it's smaller, Trumpet offers custom solutions for financial advisors, though the service is offsite. Laserfiche is capable of integrating with just about any type of CRM or portfolio management software, as well as other platforms, where Trumpet targets several popular platforms used by advisors.

A third choice in this category we have not reviewed is FileNet, a program acquired by IBM in 2006.
(www-01.ibm.com/software/data/content-management/filenet-content-manager/). According to its Web site, the program claims to have powerful document management and business process capabilities. However, if the length of the Web site's address is any indication of the product's ease of use, it may be difficult to determine if this product is right for you. From appearances, the program looks better suited to broker-dealers, custodians, etc.

Choosing the package that's best for your practice will require some research and an understanding of what your firm actually needs. If your firm wants to develop work-flow automation that works with your document management and tie all of this to client relationship management, then the full-featured product category is probably the best fit. Both Trumpet and Laserfiche offer work-flow features, though Laserfiche has the most robust tools in this area. The company's Avante product can design and publish work-flow procedures specific to the needs of the end user. By using an optional public Web portal, financial advisors can store and share documents with clients and other professionals, an arrangement similar to the one between Trumpet and the Family Office Network.

However, Trumpet has a credible offering geared specifically to the financial advisor and for this reason its product is worth a closer look. Whichever one you choose, your goal should be to increase the efficiency and profitability of your practice. A cost/benefit analysis should steer you in the right direction.

David L. Lawrence, RFC, ChFE, AIF, is a practice efficiency consultant and is president of EfficientPractice.com, a practice consulting firm based in San Diego, Calif. (www.efficientpractice.com). The Efficient Practice offers an advisor network and a monthly newsletter.