Cloud accounting transformed the world of CPAs; most would say for the better. The first ones to implement it, also known as “early-adopters”, surged forward – gaining significantly with less time spent, lower costs, and enhanced operational efficiencies. Technology and accounting then took its next big leap with cutting-edge innovations such as
and data analytics that have spearheaded the revolution in accounting workflow automation.
For CPA firms the changes in automation offered itself in more ways than one. In addition to obvious enhanced efficiency in reporting, there was also the opportunity to grow their business and increase their client based. Additionally, it presented firms the possibility to evolve from performing ‘just’ accounting related tasks to more advisory related function. As a result, clients saw added value in having a CPA firm on their side – all this thanks to technology and accounting workflow automation.
As an accounting firm, if you haven’t already joined the technology bandwagon, there could be no better time than NOW. To help you get started, this blog gives you all the information needed to ride through an increasingly dynamic business world influenced by newer technology; especially one dominated by accounting workflow automation. This blog also offers benefits of automation in accounting and how accountants can stay ahead in a future dominated by technology.
Playing Catchup: Automated Accounting Processes in 2025
A key element of futureproof accounting is being on the lookout for new tech and embracing when it comes. At this point, it’s important to emphasise the need for tools that remove tediousness from certain processes, by enabling automation at key points. Let’s look at some of the processes that are potential candidates for automation.
Data Capture & Entry
Automation software uses OCR and AI to read invoices, receipts, and contracts. Apart from this, they also bring transactions from POS systems, banks, and payment gateways so that data collection and entry can be simplified, without the risk of human error.
Bank & Ledger Reconciliations
Software reconciles bank transactions with ledger entries automatically. It spots missing or duplicate records and even recommends reconciliation entries like bank fees or interest charges. Accountants can provide neater books and fewer casualties at the month-end or year-end close.
Invoice Processing
Automated invoices can be scanned, extracted, and compared against purchase orders or delivery notes. A no-hands operation approval workflows system allows them to be forwarded to the correct person, and payments can be scheduled upon approval. Payments can be scheduled once approved on due dates or cash flow requirements, accelerating the entire accounts payable process and vendor relationships.
Seven Steps to Get Automation Started
For accounting firms, the need of the hour is to be proactive in their approach to technological innovation and adopt accounting workflow automation. Let’s look at some immediate changes that should be easily implementable
Step #1: Shift Toward Advisory Services
Automation is transforming accounting from a mere service-based outlook to a more advisory approach. IFAC 2023 reported that over 70% of small and medium businesses want accountants to offer strategic guidance over everyday bookkeeping.
Traditional accounting functions like expansion planning, cash flow management, M&A, and financial forecasting are expected to grow at a growth rate of 20% annually (IBISWorld, 2024). Rather than just running-through-the-books, accountants are now being placed as business advisors who drive growth, market growth, and capital design. Firms that have transitioned to advisory have seen customer satisfaction rise by 62%. This shift places advisory at the center of the future of accounting.
Step #2: List & Prioritize All Your Accounting Processes
Prior to embarking on your automation journey, it is important to list out every financial task. Utilize the Process Improvement checklist to determine which of your existing accounting processes are most in need of improvement.
Create a list of your tasks, placing the most critical ones at the top and beginning with the routine tasks that are repetitive, prone to error, and resource intensive. This way, you will begin receiving the good stuff from automation in no time and gradually make your entire accounting work simpler.
Step #3 Select 1-3 Processes to Implement and/or Update Monthly
Guess the time it takes to implement/update these processes. Attempting to automate everything at once may be overwhelming and counterproductive. Be realistic with how much you’re able to accomplish to smoothen the transition before moving on to the next set of processes.
Step #4 Document Your Processes
Use a document tool like Google Docs, Word, or Notion and make a list of instructions on how to complete your process step-by-step from start to finish. Be thorough and highly detailed. A complete stranger should be able to perform the task simply by reading the document.
Step #5 Buy Apps/Technology to Automate Your Processes
With this in mind, it’s time to look for the tools you need to automate your accounting processes. Find software and apps suitable for your business size and requirements. Read reviews, have a go at demos, and ask for suggestions from peers.
A good place to obtain recommendations is from sites like Gartner or G2. Here you will find member reviews and a host of comprehensive answers regarding tech-related questions from likeminded CPAs.
Step #6 Testing and Quality Assurance
Prior to full implementation of automated processes, test them exhaustively to detect and fix any flaw or glitch. Start by performing minor tests in order to detect any potential issue or error in your automation configuration. These experiments enable you to fine-tune the automation configuration to ensure your information remains correct while automating your workflow.
Step #7 Re-Prioritize Your Processes Quarterly
Monitor your automated processes regularly and revise them accordingly to incorporate changing business needs or regulatory requirements. Look for areas of slowdown or where manual intervention might still be required.
By reviewing your processes regularly, you ensure your automation remains aligned with your business objectives.
Conclusion
Embracing technology and automation helps accountants eliminate tedious tasks, so they can focus on strategic advisory and client relations. Firms and professionals adapting at an early stage will not only survive but also redefine the value of accounting in the era of technology and harness the full potential of automation.
This is why Acobloom, with its long-standing commitment to compliance, helps your clients adapt to the ever-changing regulatory environment. We keep up with the latest technology and tools, emphasizing data security and maintaining rigorous standards. This combination of regulatory expertise, technological advancement, and a firm focus on security enables Acobloom to deliver dependable support and sustained value to both accounting firms and businesses.
