When you think of accounting firm automation, a fight-or-flight instinct kicks in: "We're doing just fine with the way things are! We don't need any automation! I don't want to lose people to machines!"
They are valid thoughts, but they're rooted in fear. Yes, introducing accounting firm automation to your team will require some changes, but they're good changes, I promise. Automation doesn't automatically mean relying on robots and getting rid of your staff.
It may surprise you to learn that accounting firm automation leads to the elevation of your people — not elimination. Automation also reduces human error and removes repetitive tasks. It gives your team time to work on things that matter, such as increasing your client accounting and advisory services. Above all, automation empowers your firm, your team and your clients.
Here's how to use automation to elevate your firm and remove the fear of elimination.
Debunking the myths
There are several myths surrounding automation in accounting firms, and it's mostly due to the fear of the unknown. No one wants to be replaced by a machine or new software. Implementing new applications to automate processes in your firm can also sound daunting.
Those are just myths. Let's dive into the five biggest myths surrounding accounting automation.
1. Myth: Automation is time-consuming and expensive. Automation is the exact opposite of time-consuming and expensive. Several applications are available for the accounting profession that are priced reasonably for small to midsized firms and are very affordable. Not to mention the fact that investing in a payroll provider application will help streamline processes and prevent you from adding another team member for manual payroll data entry.
While learning a new application takes time, the overall time saved with task automation is well worth it. Investing in automation isn't a wasted effort, especially when considering the future time savings and added benefits of automation, which I'll cover later.
2. Myth: Automation only helps large businesses. While large businesses do benefit from automation, they're not alone. Small businesses have a limited number of staff members who are often spread too thin. Automation reduces the number of manual tasks (e.g., data entry, invoicing, payroll) among employees and frees up their time so they can work on more professional services.
In fact, smaller firms should push for more automation precisely because of the modest number of employees. The fewer manual tasks your staff must complete, the more time they can dedicate to your firm and enhance your services list.
3. Myth: Automation takes away control. Contrary to popular opinion, automation does not take away control over your accounting processes — it gives you more control. Automation software applications gather data and streamline information, freeing your team to review where your firm is both flourishing and lacking. It gives you increased visibility and access to valuable insights, so you can focus on the big picture and handle problems more quickly. That's more control than running everything on paper.
When it comes to both client and employee onboarding, automation solutions streamline these processes. Clients and employees are onboarded the same way, learning your preferred strategies, technology solutions and communication channels — automation controls these important processes.
4. Myth: Automation is a cybersecurity risk. As with every new technology or application, a slight security risk does exist. Rest assured, however, that accounting software is held to the strictest security requirements due to the nature of handling personal data. Applications are password-protected, and files are encrypted. Many applications require multifactor authentication to ensure that all parties are protected.
The more paper and manual processes you use, the higher the security risks. Think about a client's file sitting on someone's desk; it holds a treasure trove of personal information, such as Social Security numbers, W-2s and other sensitive data. A folder can easily be swiped and exploited, but it's harder for someone to gain access to a secure application guarded by firewalls, passwords and encryption. Automation isn't the cybersecurity risk — human error is.
5. Myth: Automation replaces staff. The elimination of staff is quite possibly the biggest and most common automation myth of them all. Firms are afraid to use automation tools because they don't want to lose the human element. Automation doesn't remove staff from the equation — it empowers staff to do even more. It eliminates repetitive tasks and allows employees to focus on more beneficial tasks, such as offering advisory services.
The smaller the firm, the more important automation becomes. Think about it: Would you rather pay an employee to spend time manually entering payroll information, or would you prefer they advise clients on retirement services as a payroll application handles the task?
Less repetitive tasks fewer errors
If you're still entering data manually on spreadsheets, processing paper documents and tracking things manually, you're on track to increase possible human errors, enter inaccurate and inconsistent data, and lose valuable time better spent growing your firm. Automating tasks within your firm has several advantages:
- It reduces paperwork.
- It increases productivity.
- It removes repetitive tasks.
- It reduces human error.
- It improves accuracy and efficiency.
- It allows for faster turnaround times for client deliverables.
- It gives you real-time visibility into your firm and clients.
Think about all the manual processes your team currently performs, and then consider all the processes that could become automated: invoicing, expense reports, online payments, document sharing, e-filing, payroll, financial reports … the list goes on. Performing these tasks in automated cloud-based applications will reduce time and errors. I can't say there will be zero mistakes, but you'll be able to spot them more quickly when an application is doing the detailed work for you.
Also, consider how accounting applications integrate with each other, reducing even more manual intervention when it comes to data sharing. No one wants to spend time taking data from one application and manually entering it into another, I'm sure you don't want to pay for someone to do that either.
I know how strong the desire can be to automate all tasks. Start slowly by incorporating a new tool to handle payroll processing. Once that application has been adopted by your team, move on to the next process you want to automate. Slow and steady wins the race.
Enhance client accounting and advisory services
Introducing automation allows for this in so many ways. Less time is spent on manual tasks and data entry, and automation pulls together data in a usable format, so you're able to see what services your clients need.
Using the right client management system will get you there. Instead of keeping client files in folders and having to sift through them to find which clients have retirement services, who has an S corporation versus a C corporation, or who needs payroll services, the right CMS gives you those valuable tools right at your fingertips.
Instead of spending time on manual tasks, your staff's time is now freed up to focus on your ideal client base and advise them on services that will benefit them most. You don't want to be the firm that only does tax returns — you want to be your client's top advisor and help them make informed business decisions. Automation makes this possible.
