accounting firm automation

Managing an accounting firm often feels like juggling a million things at once—tight deadlines, repetitive tasks that never seem to end, and the constant need to keep up with new technology. It’s clear that relying solely on manual processes can hold a firm back, leaving less time to focus on the strategic work that drives growth.

Many firms have found that by automating key processes, they’re not only saving hours of work each week but also reducing costly errors and creating a better experience for their clients. The trick is knowing which tasks to automate and choosing the right tools to make it happen.

This article will cover:

  • A breakdown of what accounting automation really means
  • How automation can help your firm become more efficient and client-focused
  • The must-have features to look for in accounting software
  • 13 practical ways to use automation in your firm, complete with recommended tools

 

What Is Accounting Automation?

Accounting automation is a powerful tool to help firms to streamline their processes and save time and money. It links different apps, such as invoicing tools, expense tracking software, and financial dashboards, to automate tasks like creating invoices, reconciling accounts, managing payroll and project deadlines, and much more. 

By automating these processes, accounting firms get more done in less time while reducing manual errors associated with repetitive tasks and tedious data entry.

With the right automation strategy, your firm can be more efficient in its daily operations and free up team members for important projects that require more personalized attention and creativity. 

Automation also helps keep your clients happy and eliminates lost time due to forgotten tasks or administrative errors.

Choosing Accounting Automation Solutions

There are several factors to consider when choosing an accounting automation software solution.

  • Integration with other systems: Ensure your accounting automation solution is compatible with platforms your business already uses, such as customer relationship management and enterprise resource planning software. This will simplify the integration processes and reduce data errors among different tools.
  • User-friendliness: Opt for an easy-to-use system that staff can learn quickly, saving them from long and tedious training sessions.
  • Scalability: Make sure your chosen solution can adjust to a growing business so you don’t have to replace it when your company expands.
  • Cost: Weight the cost of the product against its features and potential return on investment before making a purchase decision. Aim for a solution that offers value and covers all your financial management requirements.

        9 Automation Areas for Accounting Firms

        1. Client Communication

        Traditional methods of communication can be incredibly time-consuming and sometimes lead to ineffective communication or lost messages. Slack solves those problems.

        Slack is a messaging platform designed for teams, businesses, and organizations. It has features like creating channels by topic or project, direct messaging between team members and other network users, easily finding past conversations with searchable archives, setting reminders for team members, and more.

        Accounting firms that need to communicate frequently with monthly clients find Slack offers an easy-to-use solution. Its user-friendly interface and array of tools make it perfect for quickly sending updates, requesting documents, and sharing vital information. Firm owners can keep their entire team up-to-date in real time with the platform’s powerful messaging features.

        In addition, Slack’s mobile app makes it easy for both teams and clients to stay connected no matter where they are. It allows firms to provide fast customer service and respond quickly to client inquiries, ensuring they promptly meet each client’s needs.

        2. Invoice Automation

        Getting clients billed correctly and on time can be difficult without proper invoice generation and management processes. It can lead to cash flow issues when payments are not received or get missed due to a lack of follow-up.

        Thankfully, tools are available to streamline this process of creating and managing client invoices, eliminating these potential issues. Two popular invoice automation systems for accounting firms are Zoho Invoice and FreshBooks.

        With Zoho Invoice, you can quickly create professional-looking invoices using their pre-populated templates. You can also add notes and messages to your invoices, helping maintain client relationships. The software also has a multi-currency feature, allowing you to send invoices in different currencies and track payments in real time.

        FreshBooks is another invoice automation system to consider. Features include setting up recurring billing, tracking expenses related to projects, generating reports on income and expenses, and creating custom estimates. You can also integrate FreshBooks with popular apps like QuickBooks for seamless data transfer between services.

        3. Workflow Automation

        Several client workflows typically need to be managed at an accounting firm. These include onboarding new clients, tracking open items throughout a project, documenting client feedback from review meetings, creating monthly invoices, following up on overdue payments, and closing out projects.

        These steps are vital for providing quality client support and ensuring the firm’s success. At its core, workflow automation helps you streamline your processes to save time and money, reduce manual data entry, and focus on more important tasks.

        • Improved accuracy and reliability of financial reports: Automation allows for the elimination of manual data entry errors, ensuring all accounts are balanced correctly.
        • Increased productivity: Automated processes save time by eliminating mundane tasks such as sorting through paperwork or entering numbers into databases. This lets staff focus on higher-value tasks such as periodic audits or consulting services.
        • Streamlined client onboarding process: Automating the onboarding process helps new clients get set up faster in the firm’s systems, reducing administrative burden and increasing efficiency in the long run.
        • Increased compliance and control over finances: With automated processes, firms can easily ensure their clients remain compliant with industry regulations.
        • Enhanced customer service: Automating administrative tasks and financial processes can free your staff to focus on providing better customer service and responding to inquiries promptly.
        • Improved scalability: Automation allows firms to scale their services quickly and easily, allowing them to take on more clients without adding headcount or resources.

        When it comes to accounting workflow automation, Jetpack Workflow is the perfect solution for accounting and bookkeeping businesses. It is a powerful platform with features like customizable templates, recurring tasks, workload monitoring, and more. 

        With over 6,000 accountants and bookkeepers already using Jetpack Workflow, it’s easy to see why this product is so popular. Learn more and start a 14-day free trial here.

        4. Bank Reconciliation

        Bank reconciliation can be incredibly labor-intensive for accounting and bookkeeping firms, particularly when managing the bank accounts of dozens or hundreds of clients. If bank statements aren’t reconciled accurately, it can create significant problems for the client and the accounting firm.

        For the client, inaccurate reconciliation could lead to misallocating funds or other errors that could cause financial losses. For an accounting firm, an incorrect reconciliation could result in a damaged reputation and potential legal liability.

        When errors are found, quickly identifying and addressing them helps resolve any potential issues before they have a detrimental impact. However, manual reconciliation processes leave room for human error and are time-consuming tasks preventing firms from delivering an accurate financial picture to their clients on time.

        To ensure the accuracy of their bank reconciliation process, firms can leverage tools like BankRec and AutoReconcile. These systems enable users to match transactions in their accounting system with corresponding entries in the bank statement.

        BankRec allows users to upload a CSV file containing their client’s bank transactions from the past month. The tool then matches each transaction with its corresponding entry in the user’s accounting system, helping the user quickly identify and address any discrepancies.

        AutoReconcile is another useful automation tool. The software automatically reconciles all transactions between two sets of records (e.g., an external bank statement and an internal accounting system) by matching the date, amount, payee, currency, and more. This process helps to ensure accuracy and speed up the reconciliation process significantly.

        5. Payment Collection Automation

        Manual bill payment processes can be tedious and inefficient for accounting firms. Collecting payments the old-fashioned way requires a lot of paperwork and manual tasks like data entry and tracking customer records. 

        As a result, the risk of errors increases in processing payments. Double charges could occur if someone neglects to update the system after manually entering information.

        On the other hand, automating bill payments with tools such as Bill.com and QuickBooks Payments can streamline the process by eliminating unnecessary steps and reducing the time needed to collect payments. Automation also eliminates the risks associated with manual processes, increasing accuracy and security regarding customer records.

        In addition to simplifying and securing accounting processes, automating bill payments also provides a better experience for clients. Automation can reduce the time from when the customer authorizes a payment to when the transferred funds land in the firm’s account.

        6. Financial Reporting Automation

        Financial reporting is another labor-intensive process. Accounting firms and bookkeepers often spend lots of time manually entering data, validating numbers, performing calculations, and preparing financial statements. 

        This amount of labor employs valuable resources that could be put toward growing the business or providing other accounting services to clients instead.

        Xero and QuickBooks are two popular examples of financial reporting automation tools many accounting firms use today. Accountants can create financial statements from data stored in the cloud, such as cash flow statements, balance sheets, income statements, and trial balances. 

        Using these automated reporting systems helps speed up the reporting process, saving time and money while still providing accurate financial information.

        Automated financial reporting tools also make spotting trends and potential issues in a client’s finances easier. Accountants can quickly identify cash flow changes, assess a business’s health, and make better decisions based on reliable data. 

        Furthermore, these tools provide accounting firms with an efficient way to monitor their clients’ finances, allowing them to deliver more customized solutions that meet their customers’ needs.

        7. Client Reminders Automation 

        In a recent interview on the Growing Your Firm podcast, Brian Clare, co-founder and CEO of Blueprint Accounting and the “Zapier Guru” of the accounting industry, said, “Losing the ability to automate client reminders would break my heart if Zapier went away.”

        Many accounting firms struggle to gather necessary information from their clients, leading to costly delays and lost opportunities. It’s time-consuming for the client and the firm since it involves a lot of back-and-forth communication, often resulting in incomplete or outdated data being submitted.

        To overcome these challenges, Brian uses Zapier and the email automation service ActiveCampaign to:

        • Request clients to send bank statements each month for reconciliation
        • Send clients an email just before month’s end reminding them he’ll need their receipts
        • Set client-specific reminders, such as logging into their account to share a file

        Brian notes that, for the most part, clients respond faster when they receive automated email reminders.

        8. Time Tracking Automation

        Accurately tracking the time each client account requires lets firms bill their clients fairly and provides insight into where to make improvements and create more efficient processes. Inaccurate time tracking or underbilling for services can lead to lost revenue for any business, especially in an industry as competitive as accounting and bookkeeping.

        Fortunately, excellent automation tools such as Time Doctor and Harvest make time tracking easy. Time Doctor allows you to easily monitor how long each team member works on each task. Harvest enables you to send accurate invoices with an exact breakdown of the hours your team members work.

        With these automation tools, you can ensure your clients are always billed accurately for the time spent on their accounts while maximizing your profits by tracking and billing their clients for all services rendered.

        9. Client Onboarding Automation

        Accounting firms frequently tell us they’re looking for ways to expedite the client onboarding process. There’s a lot of information to collect from the client and quite a few platforms they need to get set up on before work can actually begin.

        Brady Meaux, founder of the accounting firm Meaux & Co., described how he’s using Zapier to automate this process when he came on the Growing Your Firm podcast. He said, “New clients can fill out one form, and Zapier will connect all the applications I want that client to be set up in.”

        Here’s what happens in the background with Zapier once a new client fills out Brady’s form:

        • Sets them up as a contact in Google
        • Adds them to QuickBooks Online and ProConnect Tax Online
        • Sets up a specific folder structure in Citrix ShareFile
        • Creates a new client in Jetpack Workflow and sets up their workflows based on the type of services they’re receiving

        You can watch the full interview with Brady below.

        Keys to Success When Implementing Automation

        How can you ensure success when rolling out new automation solutions in your accounting firm? Here are some proven best practices that can make a significant difference, especially when you’re introducing changes to a team that’s used to doing things a certain way.

        • Plan properly: Start by mapping out the processes that need automation. For instance, if your team spends hours manually reconciling accounts or tracking billable hours, identify those bottlenecks first. Then, create a detailed plan that outlines who will be involved, what tools are needed, and the timeline for implementation. A rushed rollout without a clear plan is guaranteed to frustrate your team.
        • Involve all stakeholders: Automation affects everyone, from junior accountants to your firm’s leadership. When one firm introduced automated invoice processing, the staff who handled invoices daily provided insights that improved the setup and ensured the tool worked seamlessly. By involving staff early, you get their buy-in and avoid resistance to change. And don’t forget your clients—keeping them informed about changes that might impact how they receive invoices or reports is just as critical.
        • Give hands-on training and support: New software can feel intimidating. For example, if you’re implementing a workflow automation tool for task management, set up training sessions where employees can test the software with real tasks they’re familiar with. Pair this with ongoing support, like an internal champion, to ensure questions get answered quickly.
        • Communicate clearly: Transparency is key. Let the team know exactly how automation will improve their work—whether that’s eliminating repetitive tasks, reducing errors, or freeing them to focus on higher-value work. People are more likely to embrace automation when they see how it benefits them.
        • Plan for ongoing maintenance and monitoring: Automation isn’t a “set it and forget it” solution. One accounting firm that automated payroll processing found that regular system checks helped them catch glitches before they caused delays. Assign someone to oversee updates, troubleshoot issues, and ensure the software evolves alongside your firm’s needs.
        • Be flexible and adaptable: No tool is perfect from day one. Be prepared to tweak workflows as you discover what works and what doesn’t. 
        • Measure and track results: From day one, track key metrics to evaluate success. Did your invoice processing time drop by 50%? Are clients giving positive feedback about faster responses? Keep a close eye on productivity, accuracy, and client satisfaction to prove the value of automation to your team and identify areas for improvement.

         

        See Jetpack Workflow In Action

        Get under the hood of Jetpack Workflow’s accounting workflow and project management platform. See some of the top features and how it helps your firm standardize, automate, and track client work more efficiently.