A key goal of the accounting department is to convert all information into a digital format, so that it can be accessed through a computer, rather than a filing cabinet. Many types of information no longer appear on paper at all, such as customer orders delivered over the Internet, or electronic data interchange (EDI) transactions. However, some types of data collection have proven to be quite resistant to change, especially where it is difficult to introduce a computer at the point of data collection. This is a significant issue when the sales staff is writing down sales orders in the field, new employees are filling out W-4 forms, internal auditors are working through control checklists, and so on.
A solution to these data entry problems is the digital pen. Made by Logitech, the io2 Digital Pen functions like a normal pen (yes, it contains an ink cartridge), but also includes a tiny camera that plots the precise position of the pen on a special type of paper, which the LogiTech io2 software converts into digital documents. The software also has handwriting recognition capability, so written words can be converted into text. The pen contains one megabyte of storage and has enough battery power for a user to write up to 40 pages of notes. The data is stored in flash memory in the pen, so it is quite difficult to lose.
A key part of this technology is the paper on which the pen must be used. The paper contains a pattern of very small dots that are spaced .01 inches apart. Logitech sells a wide variety of paper types, including Post-it Notes, spiral-bound notebooks, and notepads. Expect to pay about 10 cents per page.
While this is all very nice, the accountant mostly works with very specific forms, not blank pads of paper. A South Dakota-based company, Talario, has invented a variation on Logitech's system whereby any forms you need can be printed onto the special paper required to use the digital pens. In brief, load the special paper into a printer, print your forms using their existing application software, and write on the paper with a digital pen. Then upload the data on the pen, and the Telario software generates a PDF document that includes both the original form and the writing from the pen. This system also works in a network environment, so that forms can be printed on one printer, and then written upon with multiple pens whose contents are then uploaded through other computers in the network.
Examples of possible forms you could use with a digital pen are audit checklists, contracts, purchase orders, credit applications, signature cards, W-4 or I-9 forms, employment applications, time reports, and sales orders.
In short, the digital pen completely eliminates the need to scan or fax paper documents, instead creating digital documents that can be e-mailed elsewhere or stored within an accounting system.