What is an Accounting Workflow? [The Simple Guide]

Remember when accountants did all their work on paper? There would be a stack of files on your desk, and your workflow involved simply grabbing the next file.

As for prioritization, you could just move the papers around – and maybe hand off a file to a colleague if you needed assistance.

In today’s paperless world, keeping track of document management is a whole lot harder. 

A digital file exists everywhere and nowhere all at once. How do you track workflows in real-time when you have to hunt down every file on a server? 

There’s a simple solution to losing files in the virtual shuffle: an accounting firm workflow. By regimenting your accounting processes within a digital workflow management tool, you can automate repetitive tasks, streamline client management, and – ultimately – boost profitability. 

Read on to learn more exactly what we mean by an “accounting workflow” – and how it will benefit the functionality of your firm. 

What is an Accounting Workflow?

An accounting workflow is a structured series of steps that simplifies project management. For each project, you should be able to see how far along it is, which team members are working on it, and what the expected timeline is – along with other pieces of essential client data. 

Workflows can take many forms.

A to-do list is the simplest type of workflow. It can work for a single person, and a shared list might even accommodate an expanding team. 

But eventually, as your business grows and your projects become more complex, to-do lists won’t give you the flexibility and transparency you need for team collaboration and project management.

That’s where a workflow system comes in – a slightly more complex model that can guide an accounting firm’s internal ecosystem. The best systems include separate workflows for each type of project, as well as a unified system that allows you to see an overview of your team’s workload. 

Spreadsheets can work for a bit, but to really optimize your accounting processes, you’ll want specialized accounting practice management software – something like Jetpack Workflow, which was made for accountants and bookkeepers.

The Major Benefits of Implementing Workflows

For employees at accounting firms, a standard accounting workflow can reduce stress and improve efficiency. Knowing what’s expected – and when it’s expected – takes the guesswork out of an accountant’s job. 

Accounting workflow software also gives accountants the flexibility to prioritize their work tasks (and strike an acceptable work/life balance). Accounting professionals thrive when they can get the job done on their schedules while still meeting deadlines and adhering to the company’s quality standards. 

For firm owners, there are even more benefits to workflow solutions – benefits that will increase your firm’s profitability. 

The ability to monitor employee workloads allows you to more efficiently staff your firm – which can ultimately save you money. If employees are consistently missing deadlines, you’ll know well before it becomes a long-term problem. Or if employees are underutilized based on their current projects, you’ll be able to assign them additional work. 

A workflow management tool also simplifies client interactions, from the planning stage to invoicing. When clients have demanding expectations, you’ll be able to evaluate whether or not your team can meet those demands – and then proactively address the possible issue with your client. 

A client portal or workflow system gives you more insight into all these aspects of your firm.

Examples of Accounting Workflows

There are numerous ways to structure your workflows.

Finding the right version for your team will depend on a variety of factors, including:

• The type of work you do
• Your ideal level of involvement in workflow management
• The size of your team

Simple Accounting Workflow 

A simple accounting workflow might consist of a paper to-do list, or the modern equivalent – a digital spreadsheet.

In this system, each project is entered on the list with some client information and a due date. Ideally, you’d also enter the due dates on a calendar. With this workflow system, a single entry captures what each team member needs to understand about the project, while also assigning specific tasks. 

Each day, you’ll need to check your workflow system and see what’s left to be accomplished. And to assign tasks to your teammates, you’ll have to call or email them – while also checking in to ensure you’re all on the same page. 

A simple accounting workflow works for solo accountants, bookkeepers, and tax professionals – or with a small business operating with a close-knit team. If everyone knows what is going on with all of your clients, then a list containing all the open projects might be enough to keep your team organized.

However, if you have a large number of clients or projects, a simple system could cause frustrating bottlenecks as information piles up in a single entry. Maintaining such a system, with all the calls and emails it entails, can also become too time-consuming to be effective.

Slightly More Advanced Accounting Workflow

When a simple task list can’t support a firm’s growing demand, most companies migrate to a slightly more complex system.

The old spreadsheets and to-do lists are abandoned in favor of shared task lists and online systems. These generic systems solve some of the problems found with a simple system, allowing you to assign tasks to teammates while tracking deadlines.

The problem with these types of systems is that they don’t automate much of the workflow process – meaning they require a lot of manual entry. 

You’ll need to set up a checklist for each project or find the right template for recurring projects. And while you’ll be able to see which tasks are assigned to each team member, these systems rarely come with time tracking tools – making it harder to judge the workload of each of your employees across projects.

Robust Accounting Workflow 

A robust accounting workflow management system includes the features and templates necessary to keep your entire team connected. 

Each team member can see what jobs are assigned to them and what their teammates are working on. And each project comes with its own standard task list – plus, you’ll have the option to customize projects if necessary. 

These accounting workflow systems will minimize the time spent onboarding new clients and projects in the system – maximizing the time you have to actually work on the projects.

With robust accounting workflow software:

• New clients can be quickly entered and templatized for future use. 
• You can set up workflow automations on recurring tasks.
• Employees can quickly be trained on the intuitive system.
• Integrating the workflow system into your existing practice will be seamless.
• You’ll receive notifications and alerts about upcoming deadlines or missed dates.

Robust accounting solutions also help accounting firms with client communication. 

Because all projects are entered into the single workflow ecosystem, anyone with access to the workflow software can give the client an immediate update on the progress of the project – improving the client’s experience with your company. 

Your system will also facilitate internal communication, minimizing any miscommunication between team members. 

Free Accounting Workflow Templates

You could start building your workflow system from scratch (you probably already have a basic system for tracking tasks) – but there’s no reason to reinvent the wheel. Jetpack Workflow has a series of 32 accounting workflow templates available to download for free.

Jetpack Workflow offers specific templates for various accounting workflows, including:

• Bookkeeping workflows
• Financial statement workflows
• Tax engagement workflows
• Audit workflows

Each template is tailored for a specific job – but you can still customize the workflow based on your firm’s particular needs.

A Tool That Makes Managing Workflows Super Easy

When you’re ready to take your workflow system to the next level, consider Jetpack Workflow as your accounting workflow software.

Our cloud-based workflow solution is built specifically for the accounting industry and can streamline your work management – whether you work together in an office or are dispersed throughout the country (or the world). 

Task management gets a lot easier with workflow automation. Jetpack Workflow’s online system gives you visibility so you can monitor the progress of all your projects and evaluate the workload of each of your team members. 

The intuitive system includes various views that let you monitor your projects via a calendar or to-do list. When your team members are also on Jetpack, you can assign them tasks and oversee their progress in a single dashboard. 

Even if your team is still small enough to get by using a simple workflow system, by integrating a robust system into your small firm, you will create good habits that enhance your business processes and work delivery. Jetpack Workflow has a 14-day free trial – so you can test the system for yourself and see how much time it saves you.