Accounting Automation: How Your Firm Can Automate Key Tasks

According to a recent survey, 92% of accounting professionals say they spend too much time completing manual tasks – jobs like data entry, client payroll, payment reminders, and bank reconciliation.

Your team members could be devoting their time to higher-value activities. 

Thanks to artificial intelligence and other advances, today’s accounting automation technology is better than ever. That means you can put much of your firm’s accounting systems on autopilot. 

But to fully capture the benefits of automation, you need to make sure you’re automating the right tasks – and using the right software to do it. That’s why we’ve provided this detailed guide on how to implement accounting automation for your firm 

What Is Accounting Automation?

Accounting automation is the use of software and other technology to automate accounting processes – especially repetitive tasks like data entry, invoice processing, and some aspects of cash flow monitoring. 

While automation won’t replace every manual task in your accounting system, it will definitely streamline them. And by increasing efficiency across the board, your accounting team will become more productive – which will enhance your firm’s scalability.

The Problems With “Manual Accounting” 

For some accountants, the choice between automated and manual bookkeeping seems like a matter of personal preference. Some folks just like to do things the old-fashioned way, right?

Well, in this case, the “old-fashioned way” has some serious drawbacks – which can throttle a firm’s efficiency and cause major issues with clients.

Here are 3 problems you face when you stick with traditional accounting.

Risk of Human Error

Here’s the thing about people: They tend to make mistakes. The problem is that, with financial information, small mistakes can have massive consequences. Fines or regulatory issues are never fun – and they ruin a firm’s standing with clients. 

The more manual data entry that accountants are doing, the more likely they are to make mistakes.

Wasted Time

Type type, enter; type type enter – that’s not an efficient use of time, which is a talented accountant’s most valuable resource. Every minute spent on repetitive manual processes is a minute that could have been spent solving problems for clients. 

Your firm’s talented CPAs have better things to do than type endlessly into Excel spreadsheets.

Data Insecurities

Stanford researchers have found that 88% of cybersecurity breaches are attributable to human error. In other words – when data gets exposed, it’s usually because a person accidentally exposed it.

When accountants at a firm are constantly engaged in manual bookkeeping, they’re more likely to make the sorts of mistakes that create cybersecurity vulnerabilities. 

5 Benefits of Accounting Automation

It’s time to stop thinking of accounting automation as an optional shortcut. Automating accounting workflows will have tangible benefits for your firm.

And let’s be real – other firms are already using accounting automation, including your competitors. You can’t afford to stay bogged down in the world of manual bookkeeping.

Here are 5 ways that accounting automation software will turbocharge your firm.

1. Save Time

When accountants spend less time on recurring tasks, they have more time to focus on other parts of their job. This has secondary benefits that will ripple through your firm.

 By saving time, accountants will

• Feel less stressed
• Increase productivity
• Enhance client approval

Something as simple as accounting automation software can revolutionize the culture of your firm while simultaneously improving output.

2. Reduce Errors

Human mistakes – especially missed deadlines – are significantly reduced when you automate essential and recurring tasks. People thrive on routine, and accounting workflow software can build routines into your team’s digital infrastructure. 

Your team members will no longer have to hold 5 different workflows in their heads. They can just use the software to complete one task after another. Again – see how this could boost accounting firm culture?

Human error is also a main cause of client dissatisfaction. Cut those errors to practically nothing, and you’ll have a much easier time with client retention. You could also boost client acquisition and even adjust your pricing as your firm’s reputation grows.

3. Streamline Workflows

Your firm’s “workflows” are the accounting processes your team goes through while completing tasks. 

Far too often, these workflows are left undefined – and bottlenecks follow. But with the right software, each workflow will be clearly delineated – providing the basis for seamless real-time collaboration.

When you streamline your workflows, team members always know:

• What they’re supposed to be working on
• When they should have it finished
• Who they should be working with
• What they’ll be expected to do next

With those questions answered, a lot of the stress disappears from the accounting profession – and accountants have a much easier time completing tasks on time. 

4. Enhance Data Security

Accounting firms are considered “prime targets” for cyber criminals – but with automated systems in place, you increase your chances of avoiding a breach. 

Why? 

Because accountants will know which software tools they should use, and they’ll understand how data should move through those systems. Nobody will have to say, “Hmm – I don’t know what to do next; I guess I’ll just move this file here.” Everyone will know what to do – and so data will stay safe within the predetermined workflows.

5. Allow More Focus on “High-Value” Work

The accountants on your team are likely a talented bunch. They’re probably CPAs who studied accounting, worked in the field, and gained a lot of knowledge along the way. Their expertise is your firm’s most valuable resource – and when you liberate that resource from repetitive tasks, you free it up to provide value elsewhere.

These days, many accounting firms are increasing revenue by providing client accounting services (CAS). Not doing this yet? Well, if you automate repetitive bookkeeping tasks, this is exactly the sort of revenue-producing work your team members could spend more time on.

Which Parts of the Accounting Workflow should be Automated?

Before adapting accounting automation, you have to determine which accounting tasks can realistically be automated. Spoiler alert: The answer isn’t “everything.” 

Overdependence on accounting automation brings major risks, including:

• Incorrect outputs and inaccurate financial data
• Poor communication with clients
• Wasting time by trying to automate a task that isn’t suited to automation

So let’s take a look at the accounting firm tasks you shouldn’t automate – and those you should. 

What You Shouldn’t Automate

Some business processes simply aren’t cut out for automation. While it can tempting to automate everything in the name of efficiency, here’s where you should hold off:

• One-off Projects. Let’s say a client asks your firm to complete a specific project that you’ll never do again. Odds are, you’ll spend more time setting up the automation than you would have spent simply completing the task.
• Tasks (or Elements of Tasks) That Require Judgement. While AI and automated systems are great for conducting research and helping you make informed decisions, they cannot replace the human brain! Your clients are paying you in part because they trust your judgement. Don’t let them down by outsourcing decision-making to a machine learning system. 
• Client Communication. There are some forms of sales and marketing outreach that can be effectively automated – but, in general, if clients are expecting to talk with your firm, they should be able to interact with a human. Replacing meetings with AI-generated emails might seem like a timesaver – and hey, it probably would be – but your firm’s reputation would suffer, and fast. 

Don’t despair that you can’t automate these activities. 

In fact, these are the precise tasks that your team can spend more time addressing, now that automation is taking care of other aspects of accounting and bookkeeping. That’s a good thing!

What You Should Automate

Within an accounting firm’s regular operations, there are several types of tasks that are ripe for automation.

Simple, Repetitive Tasks

You know those jobs that are super straightforward, and that you have to complete every month… or every week… or every day? Yeah – those are exactly the sort of tasks you should be seeking to automate.

Examples include:

• Data entry
• Expense processing
• Payroll
• Accounts payable/accounts receivable
• Invoice processing

Workflow Management

In a world with accounting workflow management software (like Jetpack Workflow), there’s no need for managers to constantly worry about what all their team members are doing. Thanks to automation, you can now preestablish workflows with templates that are designed specially for accountants and bookkeepers. 

With Jetpack Workflow, you can:

• Label tasks as “urgent,” “in review,” etc. 
• Assign and reassign work based in real time, based on team member availability 
• Standardize checklists
• View all client work in a single dashboard
• Store client contact info for easy communication

Tasks Where Automation Adds Significant Value

The more time-consuming a task is, the more you stand to gain through automation. Some tasks might seem difficult to automate at first – but if they’re repetitive and time-consuming enough, it still makes sense to automate them.

Here are some key tasks where automation adds significant value:

• Month-end close
• Client onboarding
• Staff onboarding
• Banking
• Cash flow monitoring
• Some aspects of financial reporting

Overlooked Opportunities and Responsibilities 

In every accounting firm, there are certain tasks you’d like to complete consistently, but you simply don’t have the bandwidth. Automating these tasks could be a great way to finally address them without taking up too much space on your calendar.

Examples include:

• Content marketing
• Client reminders
• Sales processes

Choosing the Right Accounting Automation Tools

For accounting automation to really serve your firm, you need to choose the right accounting software. 

Xero and Quickbooks are two of the best accounting software providers, and they will both help automate significant portions of your workflows. For example, both platforms can automatically categorize transactions and produce recurring invoices.

When it comes to accounting workflow management systems, Jetpack Workflow is the premium choice. It’s the only workflow software provider that’s specifically tailored to accountants and bookkeepers.  

No matter your firm’s current business processes, you’ll find valuable use cases for accounting automation software. 

It’s time for your firm to stop stifling productivity with manual bookkeeping practices. It’s time to embrace the productive power of accounting automation.