9 Proven Strategies to Automate Accounting Practices:

How to Automate Your Accounting Job:

From Quick Wins to Advanced Solutions

Introduction

Are you overwhelmed with paperwork and repetitive tasks, questioning if there's a more efficient way to manage your small accounting practice? You’re not alone. Automation has become essential for small accounting firms aiming to stay competitive and grow in our digital era.

Imagine cutting your workload by 18%, freeing up over 16 hours per week from tedious tasks. That's the promise of automation, and it's more accessible than ever. From cloud-based tools to sophisticated AI integrations, the landscape of accounting automation is expanding, offering new opportunities for practices of all sizes.

In this comprehensive guide, we'll explore:

• The transformative benefits of automation for small accounting practices

• Quick wins you can take today to start saving time immediately

• Advanced strategies to elevate your practice above your peers

• Overcoming common challenges and measuring your success

• Future-proofing your practice in a rapidly changing industry

Whether you're new to technology or an experienced user, this guide will provide practical insights to help you streamline processes, reduce errors, and focus on what really matters—growing your business and better serving your clients.

Are you ready to revolutionise your accounting practice? Let’s delve into how automation can transform your workflow, one task at a time.

Understanding Automation in Accounting

Accounting automation is a game-changer for small practices like yours. At its core, automation involves using technology to perform repetitive accounting tasks, freeing up your time for more strategic activities. Think of it as having a reliable assistant who never sleeps.

The time to automate is now! Since 2019, SME use of automation, AI, and cloud-based solutions has increased 1000%. UK SMEs plan to spend £2.6 billion in automation this year (in addition to £60.3 billion spent on technology).

Accounting and Finance are hotbeds of innovation:

• 75% plan on taking up cloud productivity tools this year,

• 71% plan on adopting AI, and

• 63% plan on implementing automation.
  

Benefits of Automation for Small Practices

Automation isn’t just for the big players. Small practices can reap substantial benefits too. By automating routine tasks, you can reduce errors, save time, increase consistency, and focus on what truly matters—serving your clients and growing your business.

Karbon is an accounting practice management platform. They have found average productivity increases of 18% through automation:

• 3.2 hours per week saved on reading, actioning, and searching emails;

• 3.9 hours per week saved on managing/ completing tasks;

• 3.2 hours on chasing clients;

• 4.1 hours on collaborating/ communicating with the team; and

• 2.1 hours eliminating low-value admin tasks

Common Tools and Technologies

You don’t need to be a tech wizard to get started. Tools like QuickBooks, Xero, and even Excel have built-in automation features that are user-friendly. These tools can handle everything from invoicing to bank reconciliation, making your life easier without a steep learning curve.

We use Xero and I love Xero’s automatic bank reconcilations. See, we have a good number of small-value monthly subscriptions, linked to the company debit card. Many of these subscriptions are in foreign currencies and so the amounts vary each month. Depending on the supplier, VAT is handled differently. Having Xero automatically log each transaction as it occurs is extremely time-saving. We still check transactions against the invoices (especially the VAT treatment) but it is so much easier starting with the numbers in the right place.

Future-Proofing Your Practice

In an ever-evolving industry, staying ahead of the curve is crucial. Automation not only makes your current processes more efficient, it prepares your practice (and you) for future challenges and opportunities.

Quick Wins: Automation You Can Do Today

Let's start with some low-hanging fruit – automation techniques you can implement today without any extra help or training. Trust me, these quick wins can make a world of difference. As mentioned above, I used a built-in Xero feature that eliminated the need for bank transactions to be entered manually, thus increasing accuracy and consistency. But this is just the start.

1. Utilise Built-in Software Features

Your accounting software is likely packed with automation features you're not using. Take a deep dive into those settings and enable automated invoicing, recurring billing, and bank reconciliation. It's like having a digital assistant working 24/7! We use Xero but banking reconciliation is a standard feature in many cloud-based accounting packages including Sage, QuickBooks, and FreeAgent.

2. Set Up Email Rules and Filters

Everyone uses their inbox differently. I use it as a "to-do" list, filing non-actionable emails almost immediately. Initially, I was afraid to do this automatically file emails into subfolders, afraid that I might miss something important. What I forgot was that you can leave the “unread” flag set and thus are alerted that those emails have arrived.

You will use your email inbox differently, but you should still create rules to automatically sort client emails, invoices, and important documents.

Once sorted, you can then create automated tasks to act on the contents. Accounts payable automation is a game-changer for organisation and productivity and is easy to implement once you filter your emails automatically.

Overall, automating the processing of client contacts has been found to increase customer satisfaction by at least 20%.

3. Use Spreadsheet Macros

Despite all the powerful cloud-based software, spreadsheets still have a place. Even if you're not a tech whiz, simple Excel or Google Sheets macros can automate repetitive tasks. Start small – maybe automate your data entry or report formatting. You'll be amazed at how much time you save.

If macros sound like a step too far, at least come to grips with more advanced formulas and built-in tools for replicating tasks. The goal is to build once, and run repeatedly.

Remember, automation isn't about replacing you – it's about freeing you up to focus on what really matters: growing your practice and serving your clients better. So, let's get started!

Level Up: Automation with Minor Additional Training

Ready to take your automation game to the next level? With just a couple of weekends of focused learning, you can dramatically enhance your practice's efficiency. Significantly, doing this will put you well ahead of most other accounting professionals.

4. Master Advanced Software Features

Your accounting software likely has hidden gems that can revolutionise your workflow. For instance, Payroll has become much more complicated in recent years. Likely you know of the Employment Allowance which allows small employers to not pay the first £5,000 of the employer’s National Insurance. Filing the relevant documents is time-consuming but this task is automated in most cloud-based accounting packages.

Many cloud-based packages also support Capital Allowances and the special conditions of Annual Investment Allowance (AIA). In a nutshell, you should spend some time exploring these advanced features – trust me, it's worth it

Feature	Basic Usage	Advanced Automation
Data Entry	Manual input with some automated calculations	Automated data capture from various sources (e.g., bank feeds, receipts)
Invoicing	Template-based invoicing with manual sending	Fully automated recurring invoices with automatic sending
Bank Reconciliation	Semi-automated matching with manual review	AI-powered matching with minimal human intervention
Expense Tracking	Manual categorisation with some rules	Automated categorisation using machine learning
Report Generation	Basic automated reports with manual customisation	Dynamic, real-time dashboards with customisable views
Client Communication	Automated email reminders for deadlines	Integrated client portal with automated updates and document sharing
Workflow Management	Basic task lists with manual updates	Automated workflow with task assignment and progress tracking
Tax Preparation	Guided data entry with some calculations	Automated data population and preliminary return generation
Compliance	Manual checks with some automated alerts	Continuous compliance monitoring with proactive notifications
Data Backup	Scheduled backups to local storage	Real-time cloud backups with versioning and disaster recovery

5. Implement Workflow Automation Tools

Platforms like Make.com (formerly Integromat), Zapier, and others offer "no code" tools to connect your apps and automate workflows. These are particularly good at moving information between systems, perhaps with a bit of processing added.

We used Make.com to build a flow to automate the Anti-Money Laundering (AML) process. Starting with a company name, it finds a match at Companies House, looks up the directors and persons with significant control, and automatically sends emails to get copies of ID and proof of address. AI is then used to read the documents returns to confirm that, at least on first inspection, the documents look legitimate and the details match what is at Companies House.

Obviously, the work of this script does not end our Risk Management duties but it does automate the mundane tasks that underpin the initial due diligence.

6. Learn Basic Scripting

"No code" tools can be made dramatically more powerful with a little code. Learning Python, VBA, or JavaScript are valuable skills to make the most of “no code” automation. Even basic scripting skills can automate complex tasks like data extraction and report generation, making a huge difference in your daily operations.

However, even if you do not plan to do any coding, learning a bit of programming can give you the step-by-step mindset necessary for creating really efficient "no code" flows.

Remember, investing in these skills isn't just about efficiency; it's about staying competitive and freeing up time for what really matters – growing your practice and serving your clients better.

Advanced Automation: Working with an Agency

When you're ready to take your automation to the next level, partnering with an automation agency can be a game-changer. Here are three advanced strategies that transform your practice without requiring specialised software.

7. Process Optimisation Consulting

Automation solidifies and speeds up your current processes. So, the first step may to be have your current processes analysed to identify areas for improvement. In addition to streamlining (and sometimes repairing) existing processes, they can also ensure you get the most out of your current software.

Where it is clear that existing processes and tools are not giving you the gains you desire, consultants are then well-placed to use their industry experience to propose improvements as part of a larger automation roadmap.

8. Custom API Integrations

Above we talked about using “no code” tools to automate workflows. I gave the example of connecting directly to Companies House to look up and confirm information. Companies House has an API for integrating with them (a set of rules and a list of commands), but correctly implementing APIs may be outside your comfort zone.

Automation consultants can help both with standard and custom integrations. If you can imagine the advantages of seamlessly connecting your existing software tools to streamline data flow and reduce manual data entry, then automation consultants can make that a reality

A common integration involves bringing together your CRM, accounting software, and email system. Add to this a simple rules processing system and you (or your clients) can automatically chase invoices, and process and store inbound documentation. Not only does this save time but it also minimises errors.

This brings us to a key point made by AccountingWeb. When choosing automation tools, in addition to considering the ease of use, quality, and flexibility of the outputs, it is critical to take into account how easily it integrates with your existing software.

9. Advanced Data Analytics and Reporting

Our goal as accountants is to contribute to our client’s strategic discussions in a timely and informative way. Insights sometimes require advanced data analytics and reporting systems. Such systems can be set both to arm you with information before a client meeting and to provide real-time insights via custom dashboards that automatically pull data from various sources.

Overcoming Common Challenges in Automation

Let's face it, change can be scary. So, resistance to change is natural. The key is to start small, celebrate quick wins, and build confidence step by step.

Data security is another concern, but fortunately, it has been overlooked by vendors. As we automate, we're entrusting more of our clients' sensitive information to digital systems. Security is critical but this can be handled by choosing reputable software providers and implementing robust security measures. Remember, compliance isn't just a checkbox; it's a commitment to your clients' trust.

Finally, the learning curve may seem endless and thus intimidating. It may feel like the world is moving so quickly that, even if you did catch up, you would quickly find keeping up was a full-time. I am pleased to say this is not the case. Take it one step at a time. Doing the work properly ensures that you have confidence in the result. And this is one of the most important realisations: Automation leads to consistency and accuracy, reducing your stress levels while simultaneously freeing up your time.

Measuring the Impact of Automation

So, you've started automating – great! But how do you know if it's making a difference? The answer is to benchmark existing practice and then measure the difference.

Time saved is a great place to start. Track how long tasks took before and after automation. You might be surprised at the results.

Another key indicator is error reduction. Automated systems are typically more accurate than manual processes. Remember to track both the time saved from checking and fixing errors, and the loss of reputation from errors that slip through the cracks.

For any investment, ROI is critical. When calculating ROI be specific about how the freed-up time will be utilised. There is the saying that “the devil finds work for idle hands”. When planning and implementing automation, make sure that efficiency savings are translated into more strategic work.

Future-Proofing Your Practice with Automation

The world of technology moves fast, and staying ahead of the curve is crucial. But don't worry, you don't need to become a tech guru overnight. The key is to stay curious and open to learning.

Set aside time regularly to explore new tools and trends in accounting automation. Join online communities, attend webinars, or even chat with your software providers about upcoming features. Remember, the goal isn't to adopt every new thing but to find what works best for your practice.

Continuous improvement is the name of the game. As you get comfortable with one level of automation, look for the next opportunity. It's an ongoing journey, not a destination. By embracing automation and staying adaptable, you're not just keeping up – you're setting your practice up for long-term success. And isn't that what we're all aiming for?

Conclusion

Automation is essential for small accounting practices aiming to stay competitive and grow. By implementing automation, you can significantly reduce your workload, minimise errors, and focus on serving your clients better.

Don't wait to start your automation journey. Implement some of the above quick wins now. Consider leveling up your own skills to keep yourself ahead. If you are interested in exploring more comprehensive improvements, contact us today to discuss your specific situation and discover how we can help you implement the best automation strategies tailored to your needs.

Let's transform the way you work, one task at a time.

By Eric Feltin

Patent holder, multi-startup founder, and non-executive director (NED), Eric loves building things. His current passion is automation in the accounting industry. He is founder of Claridian, a company transforming small accounting firms with tailored automation. Boosting productivity. Increasing accuracy and consistency. Freeing up time to focus on strategic client work.