As Thomson Reuters found in a July 2024 report, the accounting world is facing profession-defining challenges right now. The top reported challenge is attracting and retaining talent – a pressing problem, given the ongoing shortage of accountants and CPAs. The other is time management and meeting deadlines.

To face these challenges and prepare your team for the future, it’s vital to start embracing automation now. We are living through a 'Renaissance 2.0' thanks to new technologies. As these tools re-shape how we do business, accounting professionals must become much more comfortable with using technology to save time, improve client outcomes, and keep pace with competitors.

Transformative Tech and the Real Goal of Automation

The goal of automation isn’t to simplify workflows (although that is one helpful by product). Its ultimate purpose is to free your team for higher-value activities, like consulting on growth strategies or offering advisory services. This is why automation must be powered by the best in emerging tech, so you can analyze high-level data, identify new trends, and provide unique insights.

The 3 most transformative technologies in accounting are:

1. Artificial Intelligence (AI)
2. Cloud Computing
3. Robotic Process Automation (RPA)

Combined, these technologies can help firms automate routine tasks, such as data entry, tax filing, and financial reporting, all of which consume time and resources.

Accounts Receivable: A Ready Candidate for Automation

One area where automation can improve things practically overnight? Accounts Receivable (A/R). It may not be the most glamorous subject for automation, but it’s one of the most urgent. Most accounting firms still rely on manual follow-ups, email reminders, and cumbersome spreadsheets to track payments, absorbing 5 hours a week on average.

Automated A/R solutions can improve efficiency and cash flow by helping your team:

• Send timely payment reminders

• Create and track invoices automatically

• Make payments data consistent across the firm’s tech stack

• Reduce human errors

• Spend less time following up on overdue invoices

• Improve data security and compliance

• Produce more valuable financial insights about areas for growth

• Find cost savings and increase working capital

In short, the benefits of A/R automation cannot be overstated. Some firms have even seen up to 60% A/R reduction with the right combination of solutions, as CPA firm Pease Bell shared in a recent webinar.

Developing Your Technology-Driven Services

As accounting thought leader Jennifer Warawa shared following her keynote at Winning Ways: “Most firms see technology as a utility rather than a differentiator. But leading firms understand that technology must be woven into the core vision of the firm.”

Here are 3 steps to start weaving automation into your firm’s vision and make technology an integral part of your services:

1. Assess Firm Needs: Start by identifying the most manual, time-consuming tasks within your firm. These are the prime candidates for automation through AI, RPA, or other technologies.
2. Evaluate Available Technologies: Research all the current technology solutions – from accounting software to AI platforms – that can automate these tasks. Look for platforms that integrate with your systems.
3. Innovate: Pinpoint where you can create value-added services, such as financial forecasting, predictive analytics, or real-time client dashboards.

Additionally, here are 3 challenges to monitor during the process (and how to handle them):

1. Resistance to Change: Accounting professionals may resist the shift to automation, fearing job displacement. Continuous training opportunities will help employees understand the value-add.
2. Implementation with Legacy Systems: Firms often struggle to integrate new technologies with existing systems. Using a phased implementation (i.e. proceeding in clearly defined stages) will help you prevent data siloes and later challenges.
3. Ensuring Data Security and Privacy: As firms rely more on cloud computing and AI, ensuring the security of sensitive financial data needs to be top-of-mind. Prioritize security measures like encryption and multi-factor authentication.

Accounting Will Soon Be Defined by Technology

Over the next twenty years, the accounting profession will likely undergo even more dramatic transformations than the last twenty. With greater adoption of AI and advanced analytics, firms will be positioned to predict financial trends with greater accuracy than ever.

The time is now to invest in automation to streamline manual tasks and drive growth – not just for your firm, but for your clients and their future success, too.

Alliance Partner QuickFee empowers accounting firms to eliminate late payments and reduce aging Accounts Receivable, ensuring smoother cash flow and stronger client relationships. Find out more here.