In our previous practice management blog, we discussed some common mistakes accounting firms tend to make, which can easily be prevented with the help of CPA due date monitoring software. Simple things like data entry mistakes; loss of financial records; and ignorance of one’s financial status are easy mistakes to avoid, but can be can be devastating to an accounting firm. Our post got us thinking about all the other issues we’ve seen over our 20 years in the accounting business—enough to make a whole new blog post! Below are three more mistakes our time and billing software can help you avoid.
Poor Cash Collection
This is a problem we typically observe in new accounting firms, or small accounting firms which grow very quickly. New accounting firm owners often do not realize that very few businesses pay promptly. They assume that mailing out monthly bills is an adequate invoice collection process, which is unfortunately rarely the case. Time and billing software for CPAs can help alleviate this process by automatically sending invoices out to clients, as well as gentle payment reminders. Some time and billing tools, like ImagineTime, also allow you to add a “Pay now” button to your email invoice, a handy feature which makes clients much more likely to submit payment.
Lack of Investment in Modern Technology
In the past few years, technology has completely transformed the accounting game. No longer must CPAs spend long days hunched over at their desks, scratching away at piles of ledgers. Modern accounting software has become crucial to ensuring a firm’s success—and we don’t just mean that it makes the job easier (although it does). We also mean that clients now expect accounting firms to be technologically proficient. Firms that do not use high-quality due date monitoring software and invoicing software do not give clients the customer experience they expect, in which case they may look elsewhere for accounting services.
Failure to Invest in High-Production Team Members
Even accountants, who deal in numbers and figures, are not immune to hiring, promoting, or retaining team members who are the most likeable, rather than those who provide the greatest value to the business. However, bear in mind that the team you put together can make or break your firm, and hiring a poor performer based on personality could wind up costing you significantly in the long run.
Don’t get us wrong—we’re not suggesting you hire someone rude, irritable, or difficult to work with just because they have a high production output. To do so might actually lower your long-term profitability, as your other employees (and clients) might become frustrated and decide to exit the relationship. What we are saying, however, is that you should weigh every decision carefully using both qualitative and quantitative data. The latter is where CPA time and billing software comes in handy: employee reporting software lets you know which are your highest performers, and which ones tend to fall short when it comes to meeting firm benchmarks. Knowing this data can help you make fully-informed, well-rounded decisions.
Kick Off a Year of Success with ImagineTime!
Accountants are in the business of finding and fixing mistakes—but we are humans, and all humans will make mistakes at some time or other. The good news is that ImagineTime’s time and billing software for accountants helps to minimize those errors, reducing internal stress and keeping your clients happy. If you would like to view our due date monitoring software in action, simply fill out our easy form to request a free demo. One of our representatives will contact you as soon as possible!