IT for Accountants: 5 Ways to Make the Next Tax Season Easier
The five different ways that accountants can leverage technology to their advantage during the tax season covered in this blog include: document management, cloud-based solutions, data analytics, communication and collaboration, and a network designed for your operations.
Blog Post
7 minute read
Apr 01, 2024
You’re probably familiar with the phrase, “work smarter, not harder.” But when you’re an accountant in the heat of tax season, you simply don’t have the time to think about evolving technologies, let alone implement new workflows or solutions.
Of course, accounting professionals are no strangers to long hours, complex regulations, and tight deadlines, especially whenever the tax deadline approaches. However, the rise of technology and other IT services for accountants streamlines processes, reduces manual labor, and ultimately makes work easier.
Some of the solutions that support individual accountants and accounting firms include:
See how different IT solutions have positively affected the way accountants operate:
If modernizing the technology in your accounting firm is taking too much time away from studying the tax-code or attending to clients, download the eBook, Does Your Business Need a Managed IT Service Provider? To learn about how you could benefit from a strategic partnership.
Addressing Common Pain Points in Accounting With Tech
During tax season, accountants encounter numerous challenges that technology alleviates such as:
Time consuming manual data entry
Tax law updates
Ineffective communication channels
Data security
Work load management
Manual data entry, for example, consumes significant time and is prone to errors. If the time spent on repetitive and menial data entry tasks wasn't bad enough, if mistakes aren't caught as they're entered, you can end up repeating entire data entry tasks just to correct a few simple errors.
This isn't just inefficient, it's unsustainable, and extraordinarily frustrating.
Additionally, tax laws change almost every single year, demanding accountants stay up to date on regulations for compliance. Updates to tax laws and regulations are critical for accountants to learn every year so they're confident when submitting client tax documents and so they don't end up paying fines for non-compliance.
Implementing workflows that address tax law updates and ease the burden on accountants can help them get through more filings with more accuracy, ultimately increasing productivity.
In this same vein, accountants need well established lines of communication and collaboration. Beyond meeting with and advising clients, these channels are also integral to facilitating internal discussions between accountants and other members of the internal staff. Without easy-to-use, convenient communication channels in place, accountants will be limited to serving a certain region and volume of clients.
Furthermore, data security becomes even more important during tax season, with so much sensitive client information being transferred across networks. While security solutions like encryption, multi-factor authentication, and secure cloud storage protect sensitive financial data from unauthorized access and cyber threats, these aren't native areas of expertise for most accountants and pull their attention away from core business operations when addressing cybersecurity themselves.
Not to mention, workload management can be daunting if you're trying to keep track of everything manually. This can be just as difficult and time consuming as manual data entry, only one of the major pain points here is that if your workload is fairly full, projects might fall through the cracks if there isn't a easy way to track them.
Additionally, when it comes to taxes - time is of the essence as returns need to be filed by a certain date and letting things slip through the cracks simply ins't an option.
1. Document Management Software
Accountants spend endless hours creating, filing, and organizing paperwork and electronic forms. A document management solution streamlines this process by allowing them to collect relevant data, store information, and organize everything electronically.
86% of accountants that use a document management platform say having all client information, such as billing, payroll, or cashflow information, in one centralized platform helps them work more efficiently.
“69% of accountants say they spend too much time gathering documents from their clients.” – CPA Practice Advisor
Finding, organizing, and sharing documents manually can be frustrating in any role. For accountants dealing with a massive amount of client documents in a very short period, a document management solution would work like an assistant. This allows accountants to focus on tasks requiring decision-making and problem-solving.
One popular document management software is DocuWare, which offers features such as data capture, indexing, and workflow automation. Another option is Revver, which provides features such as electronic signature capture, mobile access, and compliance tools.
“[DocuWare] makes going through the large volume of PO invoices faster. This way we get more time to solve and close non-PO invoices.” – Jessica McClain, Accounts Payable Lead, Impact
2. Cloud-Based Accounting Software
Cloud-based accounting software is a must-have for accountants who want to optimize their workflow, secure their data, and increase efficiency. With a cloud-based software solution, accountants can access financial data from anywhere, collaborate with team members in real-time, and automate repetitive tasks.
A cloud-based accounting platform that goes beyond simpler software such as QuickBooks Online or Xero is Microsoft Dynamics 365.
This comprehensive enterprise resource planning (ERP) solution solution lets accountants manage all accounts from one dashboard, keep projects on time and under budget, automate communications, and keep data secure by using encryption and complying with multiple industry regulations.
Additionally, accountants can integrate their Microsoft Dynamics 365 platform with QuickBooks, Xero, and many other accounting programs.
3. Data Analytics Software
Data analytics software helps accountants make sense of large amounts of financial information and provide insights to make more informed, data-based decisions. With analytics software, accountants can identify trends, detect anomalies, and perform predictive analysis.
To make better use of all the financial data already in their hands, accountants can take advantage of software like Power BI or Azure. These are powerful data analytics tools that create that use machine learning and predictive analytics to analyze large volumes of data and produce insights.
Both Power BI and Azure can easily be integrated with Microsoft Dynamics 365 to provide accountants with a comprehensive yet manageable platform.
“Organizations that have a strong analytics culture and employee awareness of analytics are more likely to have exceeded business goals.”
– Deloitte
4. Virtual Conferencing Software
With the rise of remote work, virtual conferencing software has become essential for accountants who need to communicate with clients and team members. A video communications platform helps accountants conduct meetings, share screens, and collaborate in real-time.
For accountants, who often share clients’ personal or financial information with colleagues in their organization, Teams is a cybersecure option. This video conferencing platform offers data encryption and advanced auditing and reporting, so accountants can rest easy knowing they are complying with data privacy laws.
5. Managed IT Services
For accounting firms that need extra support, a managed IT service provider can give them access to the latest technology while taking off the load of monitoring that technology. These firms will then enjoy more resources and employees who can focus on business functions.
Instead of searching for, hiring, and training additional staff to take care of a business’ IT needs, outsourcing it to a service provider can be cost effective in the long-term.
These IT service providers also help accounting firms analyze and determine how your network environment can be improved so that the entire organization is running smoothly.
Wrapping Up on IT in Accounting
Accounting professionals can benefit greatly from the use of technology to streamline their processes, reduce manual labor, collaborate, and ultimately make their jobs easier.
IT solutions and technologies such as document management, enterprise resource planning systems, and collaboration tools can help accountants organize their data, derive insights, and improve collaboration, ultimately allowing them to better serve their clients.
By implementing sophisticated technologies and modernizing your IT infrastructure, you can streamline your operations, freeing up more of your time that you can use to creating the most value possible for your clients by executing on your best and brightest ideas.
If you want to focus on serving your clients and mastering the tax code, download Impact’s eBook, Does Your Business Need a Managed IT Service Provider? to learn about the benefits that managed IT services can bring to your firm.
