The accounting industry has been facing a unique challenge for some time now — fewer students have been entering the accounting profession, while the demand for Client Advisory Services has never been higher.
The most reliable solution has been automation. Replacing time-consuming manual tasks, such as digging through financial statements, has become a necessity if firms want to grow their CAS practice. The good news is that McKinsey found that 42% of financial activities are automatable, and accounting automation can help you create capacity and advise more clients with the same resources.
1. Multiply Human Capital — Do More With Less
Accounting Tech has been evolving at an unprecedented rate. Repetitive and time-consuming financial calculations that traditionally consumed most of your day are now completed by cloud software, AI, and other digital tools. This evolution has enabled CPAs to minimize manual errors, enhance data accuracy, and free up valuable hours for more strategic advisory tasks.
While traditional accounting processes, such as data entry, transaction categorization, and reconciliation can now be streamlined through automation, finding the best available tool for your practice has become paramount. This is especially important because the entire reason to use an accounting automation platform is to make your life easier, and not for you to end up spending hours learning about the tool and be engulfed by its complexity.
An ideal accounting automation platform simplifies complex financial operations and instantly provides actionable insights into an SMB’s financial health. The advisor’s role is to use these insights to help clients capitalize on the best available opportunities and grow.
2. Increase Client Lifetime Value
Real-time processing capabilities of automation tools can empower your accounting firm with timely insights. This can help in strategic decision-making, enabling your practice to respond swiftly to market changes and focus on client experience. With a consistent focus on business health, cost minimization, and growth optimization, you ensure that your clients work with you as long-term partners.
For example, interVal automates discovery, and arms advisors with up-to-date visualized insights so that SMB growth can be monitored on a single platform. This not only enhances the overall ability to capitalize on industry-specific opportunities for SMBs, but also contributes to a more sustainable and competitive business model for the accounting firm.
3. Stay Ahead of the Curve
Accounting automation, although prevalent, is still not implemented by some firms. Despite its numerous benefits, adapting to automation feels like a challenge for many. Unfamiliarity with new tech isn’t a new phenomenon — we switched to computers and mobile phones from pen and paper, and this is no different. With how quickly tech and AI are evolving, it’s just a matter of time before automation becomes a routine part of accounting and advisory.
Another challenge lies in the perceived complexity of transitioning a firm from manual to automated processes. Most automation services are user-friendly with a minimal learning curve. The sooner you move to automation, the sooner you can free up your time to better advise more clients.
The Future of Accounting Automation
Advanced artificial intelligence and machine learning algorithms are expected to play an increasingly vital role in advisory. Predictive analytics, intelligent decision support systems, and other forms of automation will become more sophisticated, offering personalized insights and efficiency gains for SMBs.
By leveraging tech and automation, you unlock unparalleled efficiency, accuracy, and strategic insights for your clients and build an ecosystem for mutual growth.
