Increased efficiency, simpler management of remote teams, and increased value for your clients—these are just some of the benefits workflow automation brings to accounting firms. By leveraging software to automate routine accounting tasks, firms of all sizes are saving time and focusing on high-value work. Automation empowers teams to upskill, diversify service offerings, address labor shortages, and build stronger client relationships. You know you can and should automate more. The challenge often lies in what to automate and how to implement it effectively. Thanks to accounting automation, some firms are saving over two hours per week per employee simply by automating low-value administrative tasks. But implementing automation isn’t a perfect science. It requires careful planning and execution. See our Full Guide for in-depth information.

Here are ten proven ways to streamline your accounting firm with automation:

1. Automate Expense Processing

More often than not, automating the most basic processes yields the highest ROI. Expense processing is a prime candidate. Systems like Dext Prepare and Hubdoc eliminate manual receipt data entry entirely, freeing up resources for more strategic, output-focused tasks.

  • How it works:
    • Clients download a dedicated app to their smartphone.
    • Upon receiving receipts, they photograph them via the app.
    • The app processes the images and extracts relevant data to your cloud accounting software.

2. Streamline Accounts Payable (AP) and Accounts Receivable (AR)

Accounts payable and receivable can be some of the most complex business processes for finance teams to manage. The sheer volume of paperwork, coupled with the disastrous overflow effects of errors and data discrepancies, makes them ideal automation candidates. Automating expense reports, invoice processing, and purchase orders saves time and improves cash flow, forecasting, financial reporting, and decision-making. AP and AR automation software is key to realizing these benefits.

3. Accelerate Month-End Close

Month-end close is a crucial and common bookkeeping process, but it can be time-consuming. Bank statement, credit card, and bank account reconciliation, journal entry reviews, recording data in the general ledger, and adjustments – if done manually, take significant time and are at high risk of error. By automating your month-end close process, you'll spend less time cross-referencing spreadsheets and more time on analysis and strategic advising. Month-end close software will help automate and accelerate certain aspects of your month-end close.

4. Automate Bank Reconciliation

Manually reconciling bank statements is a tedious and error-prone task. Automating this process ensures accuracy, saves time, and provides real-time insights into your firm's (or your clients') financial position. Bank reconciliation software automatically matches transactions, flags discrepancies, and generates reconciliation reports.

5. Implement Automated Invoice Reminders

Chasing overdue invoices is a drain on resources. Automated invoice reminder systems send scheduled reminders to clients, reducing the need for manual follow-up and improving cash flow. These systems can be customized with different messaging and escalation levels based on payment history.

6. Leverage AI-Powered Data Extraction

AI and machine learning are revolutionizing data extraction. These technologies can automatically extract data from invoices, receipts, and other financial documents with a high degree of accuracy. This eliminates the need for manual data entry and reduces the risk of errors. Look for solutions that integrate directly with your existing accounting software.

7. Automate Client Onboarding

Client onboarding can be streamlined with automation. Use digital forms and workflows to collect client information, send engagement letters, and set up client portals. This reduces paperwork, improves efficiency, and creates a positive first impression.

8. Employ Robotic Process Automation (RPA) for Repetitive Tasks

RPA can automate a wide range of repetitive, rule-based tasks, such as data entry, report generation, and compliance checks. By implementing RPA, your firm can free up staff to focus on higher-value activities, improve accuracy, and reduce costs.

9. Centralize Communication with a Client Portal

A secure client portal centralizes communication, document sharing, and file exchange. This eliminates the need for email attachments and ensures that all client information is stored in a secure and organized manner. Client portals improve client satisfaction and streamline collaboration.

10. Automate Report Generation

Creating financial reports manually is time-consuming and prone to errors. Automated report generation tools can create customized reports with a few clicks. These tools integrate with your accounting software and provide real-time insights into your firm's (or your clients') financial performance. Schedule reports to be generated and distributed automatically.

Avoiding the Pitfalls of Automation

While automation offers numerous benefits, it's crucial to avoid common pitfalls:

  • Incorrect Setup: Often, you’ll only get out what you put in. Look for accounting automation tools that offer guided implementation options, resources, and plenty of free support content to help you set up and make the most of your automation.
  • Assuming Correct Results: Don’t assume the automation output is correct every time. It’s important to test and review the automation’s actions regularly to ensure it’s working as planned.
  • Automating Tasks That Shouldn't Be Automated: Not all tasks are easily automated. Sinking too much time into automating a high-complexity task might not be worth the effort you’re putting in.
  • Overdependence on Automation: Too much automation may actually build barriers between you and your clients. Maintain personal communication and build strong relationships.

By carefully planning and implementing automation, your accounting firm can unlock significant efficiency gains, improve client satisfaction, and drive business growth. Start by identifying the most time-consuming and repetitive tasks and then explore automation solutions that can help you streamline those processes. Remember to prioritize accuracy, security, and client communication throughout the automation journey.