For accounting firms, time is money. This is especially true for small firms aiming to build their reputation and businesses. Missing deadlines or erroneous tasks can prove detrimental to the image of such firms. If you have been struggling with paperwork or other tasks and your clients have been constantly chasing you for missed deadlines, it might be time for you to reflect deeper into the problem. The problem will mostly lie in either of the two things – your team has been facing time management issues or you have been involved in too many manual tasks.
Your ability to abide by the deadlines is a reflection of your professionalism and has a trust factor associated with it. When you have built a reputation for yourself, scaling up becomes easier. No matter what issue is causing a hindrance in allowing you to meet deadlines, you might need to consider automation.
In this article, Finsmart Accounting- trusted for the best accounting outsourcing services – will share everything about automation in accounting to meet client’s deadlines. Let’s start!
Automation in Accounting: What does it mean?
Just like any other industry, the field of accounting is becoming technologically driven. Automation is being adopted by the leaders of the industry as it eliminates traditional issues of operational incompetencies. A plethora of accounting software has become readily available in the market and they aim to solve some of the most critical problems – manual errors, missed deadlines, repetitive and tedious tasks, lack of resources, etc. Today, businesses that have adopted accounting automation report better efficiency and client satisfaction.
For small accounting firms, it is important to recognize accounting practice management software that addresses issues specific to them. These applications specifically help accountants get rid of time-consuming, repetitive tasks and meet deadlines.
How does accounting automation help with deadlines?
For accounting firms and CPAs, there is nothing as critical and precious as time. However, it is shocking to even think that this industry has some of the most complex and time-consuming work processes. There has always been a constant need to collate, organize, and process large amounts of data. They are needed as a part of the workflows. Many firms end up spending a lot of time on low-level, no-revenue-generating tasks.
With automation tools, small accounting firms can easily overcome the challenge of manual data entry. Automation also allows the creation of capacity for the teams to take up more tasks, improve efficiency, reduce costs, and has an immediate effect on profitability. Automation also helps bring everything that a customer needs under one roof. It is easy for every member involved in a project to keep track of the status on a real-time basis. Managers and team leaders no longer need to physically check on their teams, thus avoiding micromanagement.
All of these factors, cumulatively, contribute to better and faster productivity, and the ability to meet deadlines effectively.
What should your accounting practice management software consist of?
If you have been thinking about implementing practice management software for your firm, that is a great decision. But it is important to have complete knowledge of what it is that you are looking for. Not all management software is designed to meet the needs of your firm. In accounting, the notion of “one size fits all” is the greatest mistake.
The first step here is to understand and fixate on the goal – what is it that you are expecting your software to do? One of the common things you must look for is a user-friendly platform. You do not want to end up spending more time training your team.
Here are a few basic features that you must look for in your practice management software:
1. Task management: This is one of the basic tasks that your management software should be able to do. Choose an app that helps plan, manage, deliver, and keep track of all activities happening within a project. Your app should be able to track time, record timesheets, and calculate billable hours. This also allows for easing the workflow. Keeping all the updates and communication in one place allows minimum loss of time.
2. Connectivity with the clients: For accounting firms, it is not enough to stay connected with the team. It is also equally important to communicate with the clients daily. Choose software that gives clients access to the information they need. For example, if an accountant needs information while the client is away, the software should have a provision to enter the details there. As soon as the client logs in, they should be able to resolve the query. Allowing clients to keep track of the work also prevents unnecessary follow-ups.
A comprehensive guide on outsourcing payroll processing online!
3. Billing: There are software available that provides invoicing templates that the firms can use to generate bills for the clients/vendors, etc. Small CPA firms dealing with a few clients can choose apps that support mobile accounting and let the teams generate invoices on the go.
4. Document management: Accounting firms deal with a lot of documents daily. Regular clients, hourly clients, or tenured ones, and clients availing different services require an abundance of documents. Make sure your software allows you to upload documents and manage customer relationships effectively. It is important to store all data in one place to help save time and productivity.
Top Accounting Practice Management Software:
There is no dearth of options available when it comes to picking software to automate some parts of accounting. However, it is important to conduct thorough research and gain feedback from the team to make a choice seamlessly. To get you started, here are some of the top accounting practice management software that you should consider:
1. Xero Practice Manager: If your firm has already been using Xero accounting software, you can seamlessly integrate this practice management software. It equips the teams by offering project and task management features. It can efficiently track deadlines, allocate team members, and automate repetitive tasks. Since it is easy to use, it doesn’t need a lot of training. Better team coordination and meeting deadlines with precision are some of the common benefits you can reap while using this platform. Find out more here: https://www.xero.com/au/xero-practice-manager/
2. Financial Cents: Want to simplify complex workflows to achieve quick results? This is the answer you are looking for. Financial Cents provides a centralized hub to manage tasks, deadlines, and client conversations. Automated time tracking, budgeting of projects, and detailed reporting are some of the most notable features of this software. Financial Cents also provides detailed reporting, which helps firms gain insights and identify areas of improvement. Find more information here: https://financial-cents.com/
Latest innovations and trends in payroll management.
3. Asana: Many firms use Asana as a general task management tool. However, its versatile nature makes it a great choice to help accountants meet deadlines. The wide range of collaborative features, customizable templates, and task dependencies help accountants create and manage projects. This app also allows visualizing timelines and allocation of resources, making it easier to prioritize and meet deadlines promptly. Find more details here: https://asana.com/
4. TaxWorkFlow: Specifically designed for tax professionals, this app specializes in simplifying complex tax tasks. It is a centralized platform for managing tax engagements, meeting compliance, and time tracking. TaxWorkFlow helps accounting firms navigate through the tax complexities during the peak tax season effectively. The app’s focus on meeting the unique demands of tax workflows makes it easier for professionals to meet tight deadlines with quality. You can find everything here: https://www.thetaxworkflow.com/
5. Canopy: It is a comprehensive practice management as well as tax solution-providing platform. It is aimed at meeting the unique demands of the firm. Tax workflow automation, document management, and client communication tool – this software has everything. Canopy allows firms to streamline their processes and stay ahead of critical deadlines. Find more details here: https://www.getcanopy.com/
Automate and outsource accounting with Finsmart
In the aftermath of the pandemic, the world has changed and so has the way we run businesses. The field of accounting has also undergone a tremendous shift and for good. By adopting accounting practice management software, accounting firms can give a boost to their businesses. It helps them stay on top of task completion and meeting deadlines, billing, invoices, time tracking and so much more. Automation is not meant to replace accountants, but to help them become better at their jobs.
If you want to make accounting easy and relieve your team of the additional burden, you might want to consider outsourcing.
To outsource with Finsmart or gain more information, write to us at connect@finsmartaccounting.com.
Also read:
Best payroll software for small and mid-sized businesses
Accounting cyber security measures for 2024
Effective cash flow management strategies
Learn about India entry services from Finsmart
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
