Prepping for the Future - How can Accounting Firms Become Efficient in 2021?
How can Accounting Firms Become Efficient in 2021?
One thing the pandemic has taught us is how valuable digital technology has become to keep businesses running smoothly! In a year of lockdowns and social distancing, it was the use of video calls, e-signatures, and wifi that enabled accounting firm employees to continue working with clients and coworkers.
But Zoom and DocuSign are not the only ways to keep your business productive in 2021. Accounting firms in Canada are now seeking ways to remain profitable and productive throughout yet another year of unprecedented change. Read on to learn how your accounting firm can become efficient in 2021.
Reassess your Existing Operations
It’s quite easy to get comfortable with the daily grind of day-to-day tasks. Whether that's using legacy CRMs or complicated spreadsheets, we have a tendency to stick with what's familiar, even if it's inefficient.
The software, hardware, databases, IT infrastructure, and processes you use to run your accounting firms’ operations need annual reassessment for efficiency. An annual review of your operations is considered best practice to decipher if existing processes can be automated to save time and/or money in the long-term.
Switch to Value-Based Pricing
It’s not uncommon for accounting firms to offer their services at a flat hourly rate. However, the more hours the accounting employee has to put in, the more the client has to pay. This leads to clients focusing on the time aspect of your accounting services instead of the value and expertise being provided.
A value-based pricing model will not only shift that focus but it will also give your accountants a chance to earn more based on the value they add to the clients’ account.
An example of a value-based model for accountants would be.
Revisit your Services
It is common knowledge among industry professionals that tax preparation is far more value-generating than bookkeeping services.
If tax prep is an area of expertise you can build on, then limiting low-value services can help you become more profitable overall. If you continue providing the latter, your firm will misuse time and numeracy skills over the long term.
Continuing on the last point, your firm is in a much better position if spent focused on areas that increase profitability and efficiency. For instance, on boarding new clients can take time and be considered quite expensive. It's much more efficient and profitable to upsell your services to existing and lapsed clients.
For example, if you have been preparing a business client’s annual tax prep, you can upsell your services by offering payroll and/or invoice management services.
Technological advancements have enables the accounting industry to work smarter, not harder. Software and online platforms that automate invoice management and workflows are pivotal towards reducing spent on manual tasks.
Simplify Workflows with Taxbotic
Taxbotic is one such platform that you can start using this tax season to simplify workflows. It automates the T1 client data collection and delivers you everything you need to prepare your client’s returns. Taxbotic removes unnecessary back and forth with clients and cuts administration out of your T1 workflow. Life becomes easier and more efficient for you and your clients.
Want to learn how Taxbotic can help you? Start your 14-day free trial today!