Are business efficiency and automation different? Sort of.
If there was a way to offer your services by using the least amount of resources and energy, would you consider it? What if you were told you could still deliver outstanding service and achieve goals but with minimum expense, waste, or effort?
To many, it may sound like an offer of a shortcut. In fact, you’re being introduced to a solution to make you more productive and profitable; it’s called business efficiency. It means leveraging a solution that makes you work smarter and quicker to deliver results that are consistent and aligned with your mission of excellent service.
In accounting, the solution that leads to business efficiency is automation. Here’s why:
Significant Time Savings
Traditional accounting means manual processes for posting payables and receivables. You distribute invoices, print, and mail paper cheques. Numbers are plugged in manually, leaving you will little time for value-added work. It also means driving to your clients’ physical location to use their desktop accounting software.
With automation and cloud accounting ecosystems, the data entry aspect of bookkeeping is practically eliminated. You no longer manually key in bills. There’s little need for your human input once the system is set up and works in sync for everything from accounting and invoicing, to your CRM and inventory.
Automating payroll means time saved because you’re not making manual calculations or making deposits. Automating payments implies that time is not used to chase after clients with unpaid invoices. Automation means no longer bogging down your team with laborious activities such as reconciliation or managing cash application. And because automation lessens the likelihood of inaccuracies, less time is lost to correcting mistakes.
The Association of Accountants and Financial Professionals in Business conducted a study on process automation in accounting. Of the 751 finance professionals surveyed, 80% were dissatisfied with their organization’s accounting process, indicating the reliance on manual tasks increased time spent on financial statements and with the risk of inaccuracies.
Better Service and Customized Pricing Options
Automation sorts and analyzes massive sets of data, automating complex tasks and ultimately freeing up your time. As automation helps us with data collection, we make decisions faster; therefore, we give our clients better advice, recommendations, and insight.
However, becoming more efficient and delivering results faster shouldn’t mean that you get paid less because you now work more quickly.
Business efficiency — caused by automation — means there is the now the choice to transition from hourly billing to a pricing model that maximizes profits and builds stronger client relationships. Because automation makes you more efficient, you deliver better experiences to your clients. When you’re no longer billing your clients for your time but rather the value of your service, the experience for both you and the client is enhanced. With value pricing, the communication with the client improves as a conversation takes place to determine their needs and expectations.
Improving business efficiency is an essential part of maintaining a profitable accounting business. You will find that transitioning to the cloud to leverage automation streamlines not only your workflows but also improves employee morale.
And if you’re still using spreadsheets and paper-based processes, you’re limiting your firm’s potential by not keeping pace with the rest of the industry.
Until the next time,