By Analytix Editorial Team
Running a CPA firm is stressful! CPA firms play a vital role in helping clients keep their businesses running in the “new normal.” CPA firms are turning to automation and technology to combat stress and improve efficiency.
According to AvidXchange, 3 out of 4 accountants have added a new technology solution in response to the pandemic and those solutions are reaping dividends. According to a report by Sage Practice of Now 2020, 92% of US accountants say that technology is delivering value to their business. As the accounting industry embraces emerging technologies, bookkeeping automation is fast becoming a popular choice to run your practice with confidence. Here are a few reasons why automating bookkeeping can make a major difference to your CPA firm.
#1: Offer Client Advisory Services
Clients and small businesses expect CPA firms to deliver more strategic consultative accounting services. Bookkeeping automation provides an opportunity not only to take care of routine bookkeeping more efficiently, but also allows your CPA firm to spend more time on higher-value financial analysis and evaluating the growing trend of client advisory services. This can be the difference between charging $19/hr and $90/hr as you become a trusted advisor rather than simply a reporter of financial transactions. An advisor assists in everything from reviewing new regulations to business expansion and analysis of trends, margins, ratios, and more.
#2: Take the stress off of managing payroll
Managing accurate payroll for numerous clients and staying compliant with the constantly changing tax laws can be time-consuming. Any misstep can attract penalties and fines. Automating your payroll processing streamlines payroll, ensures better accuracy, and helps save money and time so that you can focus attention on growing your practice.
#3: Provide timely data retrieval
As an accounting professional, you know how locating critical data or tracking expenses, especially during tax seasons, can be a monumental task. Automating bookkeeping minimizes paperwork and allows fast file or data retrieval. This eliminates the tedious and time-consuming task of retrieving data through receipts during the tax season.
#4: Reduce burnout
Studies show that running a CPA firm can be very stressful. In fact, the recent pandemic saw CPAs working extra hours as they scrambled to meet client demand for advisory services while keeping up with the new rules to ensure that clients qualified for loan forgiveness. Work multiplies during the busy tax season and can have a negative effect on an individual’s performance and health. By leveraging automation in bookkeeping, routine tasks are minimized. Your CPA firm gains time and resources to spend on more important tasks.
#5: Save Costs
Bookkeeping automation allows you to perform routine accounting tasks and data entry in much less time. By automating important tasks like tax payments and invoicing, you move from a day of processes to a simple click. Cost savings naturally follow.
#6: Increase accuracy
Accounting relies on accurate data. Regardless of how qualified your CPA team is, there is always a risk for human error. This can prove costly in the long run. Opting to automate bookkeeping in your accounting firm reduces the risk of human errors.
#7: Improve the customer experience
Everyday accounting firms are faced with greater client demands than ever before. By leveraging technology and automation, CPA firms can streamline client onboarding. The efficiency of bookkeeping automation frees time that can be spent with clients in a more consultative role.
While providing accounting services, the ability to compile and analyze accurate financial data and deliver strategic analysis and advice is at the core of a CPA firm’s success. Our team of experienced accounting professionals at Analytix tap into the combined expertise in accounting and technology and help in streamlining different aspects of a CPA firm’s processes.