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Practice Management in a Future-Ready Accounting Firm!

Last updated: 03 Oct, 2023 By Ashish Rana | 6 Minutes Read

In accounting firm practice management, staying attuned to new trends isn’t merely an option. It has become a necessity to remain competitive. The ever-evolving technological landscape is reshaping how CPA firms operate.

However, technology integration in accounting firms extends far beyond mere automation. It plays a pivotal role in streamlining and enhancing overall processes.

Let’s explore how technology is and will continue to revolutionize accounting firms in the present and the foreseeable future.

Interesting Stats/Facts

As per the Sage Practice of Now 2018 report, accountants preferring cloud accounting are close to 67%.
According to PayPie, almost 70% of accountants believe their advisory roles will become more strategic in the future.
Xero reports that businesses that used complete cloud-based accounting solutions (100%) witnessed 15% revenue growth year-over-year.
As per Accounting Today, the global market value of accounting software is expected to be $11.8 billion.
66% of accountants are looking to invest in AI, with 55% of them planning to use the same, explains Sage.
As per the Digital Workforce report, Robotic Process Automation boosts operational efficiency by 44% by automating processes.
59% of accountants believe data science and analytics will play a bigger role in the future, Business-Higher Education Forum report.

Top 9 Ways Technology Refines Accounting Practice Management

The use of Artificial Intelligence, Cloud Accounting, Robotic Process Automation, Big Data, and Analytics will deliver the following benefits:

1. Process Integration

Most of the firms miss out on various opportunities. And the reason is simple reason they do not have integrated processes. This is why sharing of critical information at the right time becomes difficult.

However, the future accounting firms will not work like this. Instead, they will make use of cloud-based technology to integrate their internal functions like billing/budgeting, onboarding, scheduling, etc. It will help them to grab opportunities at the earliest.

2. Remote Working

Due to coronavirus, accounting firms have realized the importance and potential of remote working. This will be one of the biggest adoptions by firms in the future as well after the pandemic is over. With cloud-based accounting systems, accounting professionals can work from anywhere anytime.

This not only ensures uninterrupted accounting services for CPAs from professionals but also provides them with working flexibility, which is fast becoming a demand amongst the top talent. So, firms who would want to retain their top talent will definitely consider remote working in the long term.

3. Faster Processing

Accounting firm management often opts for manual processes to streamline repetitive tasks. Technologies like automation help in saving the time of accounting firms by taking care of repetitive tasks easily, leading to faster processing eventually.

There are multiple CPA firms that have already automated most of their processes and are utilizing accounting services for other aspects too. For instance, public accounting firms have decided to use Robotic Process Automation (RPA) into their processes, mainly with respect to assurance, advisory, and taxation services.

Also Read : Why should Accounting Firms Leverage RPA during a Pandemic?

4. Enhanced Client Service

Clients are becoming more demanding, and only the firms that can manage these ever-increasing client demands in a timely and efficient manner will rule the market. The use of chatbots is increasing more than ever, and the accounting industry is not lagging behind. Clients demand instant help against their concerns, and with chatbots, firms can answer their common questions related to accounting and taxes timely.

Apart from this, cloud accounting enables firms to share information/data with the clients to speed up accounting firm management process.

5. CRM Opportunities

CPA firms who are using a CRM (Customer Relationship Management) system are not only able to retain clients more but acquire as well compared to other firms. The reason being a CRM system helps in providing complete information about a prospect and client in real-time, enabling firms to look for opportunities within that data for client retention and acquisition.

So, this full interactional view system is not going to be an option but a necessity for firms in the future for sure.

6. Superior Decision Making

Firms have to make important decisions on a regular basis, and the right decisions can only be made when the right information is available. With cloud-based systems, firms are able to gain real-time visibility into data to make quick/refined financial and other decisions in the interest of the company.

Apart from this, this data also enables firm owners to devise strategies for growth and scalability.

7. The Advisory Role

Today, clients do not simply want tax preparation, bookkeeping, and other accounting services from their firms. They need guidance from their firms with which they can reduce their expenses and improve their business. With the use of the latest/advanced accounting software such as QuickBooks Online, Xero, FreshBooks, Wave, NetSuite etc. firms will be able to save a lot of their time and invest the same in trying to understand the financial data of clients.

This will help accountants in not only letting clients know of ways to manage their taxes well but also help them know of the strategies that will bring down their business costs and improve their tax situation in the future. This is something that will become one of the most significant competing factors amongst the accounting firms of tomorrow.

8. Mobile Accounting

Mobile accounting will definitely be on the rise in the future of accounting firms. Most of the people have Smartphones in their hands that have the potential of executing a lot of professional tasks on the go. Mobile accounting will become essential owing to less time availability, great accessibility, and convenience it provides. Accountants can save a lot of their time using mobile accounting in executing simple tasks for which they do not have to visit their offices or open their laptops/desktops. These include creating and sending invoices, claims for expenses, capturing receipts, and gathering signatures.

9. Improved Security Measures

Accounting firm management is all about managing and dealing with financial data that includes a lot of sensitive information. Most of the firms have already invested in cloud systems that offer round-the-clock protection to financial data through restricted access and data backup.

However, the use of blockchain technology will rise in the future in the form of an accounting ledger that can be regularly updated and verified with zero threat of alteration and corruption. Since blockchain will enable real-time ledger access, along with recording transactions and creating smart contracts, it will be preferred over other technologies in the future.

Conclusion

A majority of CPA firms are already making use of most of the technologies to refine and redefine their accounting processes, and others are fast catching up on the same. The future of accounting will surely be dependent on incorporating the maximum use of technology into the processes to streamline overall practice management.

However, many tasks need human intervention/management and demand a lot of time and effort, especially the back-office accounting ones. Firms can get their backend tasks managed with technology, but it usually becomes more expensive for them to invest in technology, infrastructure, salaries, etc.

So, what can be the better option for accounting firms? The better option is to join hands with a top outsourcing provider like Cogneesol. It has been providing unmatched and highest-quality accounting outsourcing services to CPA firms and businesses since 2008. Start your free trial by getting in touch with our team today at [email protected] or call us at +1 833-313-3143!