How to streamline accounting processes with software

We’ve all been there – you set out with a list of jobs, only to get stuck on a single task for the whole day. When processes don’t work as they should, practice operations slow to a crawl.

Whether it’s manual admin, tax compliance tasks, or poor delegation, ineffective processes can turn the simplest tasks into time-consuming distractions. Meanwhile, smooth processes do the opposite. They help you spend more time with clients, deliver high-value services, and take a well-earned break.

In this guide, we show you how the right accounting software helps you grow your practice, serve clients effectively, and bring in more business.

Why you need software-powered processes in accounting

Many accountants and bookkeepers will often come up against the same challenges.

1. Manual processes and repetitive admin

Certain services require empathetic human skills – like advisory, which demands experience and technical expertise. Often, manual admin tasks get in the way of services like this, because chasing and inputting data takes up time.

This is often true when tax time is approaching – the amount of time for client advisory shrinks as compliance tasks increase. Automating some of the manual tasks that don’t require your technical expertise could enable you to take on more fulfilling and rewarding work.

2. Delegating tasks and accountability

Who should be doing what and when? Assigning work effectively can help you make the best of your team and gain time back for yourself.

If you’re not delegating to the right people at the right time, you’ll struggle to scale your practice and serve clients. Teams require a framework and process to make sure work is consistently high quality, on time, and error-free.

A transparent system for delegating tasks and maintaining accountability can help your team feel more confident about the work they’re assigned. Plus, if you’ve been trying to handle everything yourself, this system could offer you a healthier work-life balance.

3. Meeting deadlines and keeping up with regulations

Accountants and bookkeepers are up against the clock when meeting tax deadlines.

A single client has multiple deadlines every year. And if you’re not monitoring the compliance workload in one place, updates are spread across multiple platforms and formats. Static spreadsheets, email chains, and written notes could all tell a different story.

On top of this, keeping up with regulatory and industry changes is a constant effort. Unless you’re using modern software, you might need to switch between tools or purchase new ones to meet changing requirements. For example, Making Tax Digital (MTD) requires practices to move certain clients from outdated accounting systems to HMRC-recognised ones.

If you want peace of mind, you need software that provides a clear view of compliance obligations and is frequently updated in line with regulations.

How to fast-track your accounting processes with software

The right software can simplify complex tasks for your practice. It can ease the workload of manual processes, task delegation, and the pressure to keep up with deadlines and regulations.

Let’s explore how.

1. Automate repetitive tasks

Modern accounting software can automate tasks like bank reconciliation, invoicing, and reporting without sacrificing quality. For example, Xero’s bank reconciliation predictions recommend matches for statement lines based on past reconciliation data.

You can also save time by using the repeating invoice feature for regular clients, so that invoices are sent on the same day or date every month. As part of Xero’s automated accounts payable process, you can also schedule and batch payments to take care of bills at the best time for cash flow.

When you use features like these in Xero, you’re not just speeding up admin, you’re reducing the chance of human error. And there are plenty more time-saving Xero features to explore.

2. Enable task delegation and team collaboration

Sharing the workload should feel freeing, not stressful. For this to be the case, you need a clear view of tasks, obligations, and the status of work in progress.

Cloud-based accounting technology brings everything together in one view, so you can easily see who’s responsible for what. You can assign jobs to staff in Xero Practice Manager and easily track the progress of the whole team with a single easy-to-read dashboard. Information flows between bookkeeping and tax workflows so tasks completed in one place are reflected across the platform.

Plus, access levels and permissions are customisable so you can ensure only the right people are working on tasks and projects that they have been granted access to. And because Xero is cloud-based, whether you’re in the office or not, you always have an oversight of your practice.

3. Ensure tax compliance and meet deadlines

With MTD deadlines and other important dates on the horizon, modern software can help you keep pace with the changing industry with a dashboard of upcoming deadlines and obligations.

Xero is automatically updated in line with new regulations. You don’t need to pay for costly upgrades or source new tools every time there’s regulatory change. See client obligations for personal tax, company tax, company accounts and VAT in one clear view with Tax manager.

Growing your accounting practice with Xero

When your operations run smoothly with the right software, you can focus on future growth.

Let’s take a closer look at how you can build smoother processes for an even more successful practice.

Using templates to drive efficiency

Templates can help you deliver a consistent, professional client experience – while spending less time creating documents.

For example, creating a cash flow forecast in Xero only takes a few clicks, so you can focus on sharing insights with clients instead of formatting a report or totting up the numbers.

Our customisable templates for invoices, reports, and financial statements are simple and easy to use for practices and clients alike. So when it comes to getting a clear view of business finances, you and your clients are always in the loop.

Integrating third-party apps to enhance workflows

Cloud-based accounting software like Xero gives you everything you need to run a successful practice. But if you want to drill down into a specific area of expertise (like carbon accounting or corporate finance) then third-party apps for accountants and bookkeepers can help you deliver specialised services.

You can integrate tools such as Hubdoc that let your clients simply snap a photo of their receipts and send them directly to accounting software. Or, you can add an app for proposal creation and contract signing so that new clients are onboarded seamlessly to Xero.

Practice needs are always changing, which is why apps are the perfect solution for accountants and bookkeepers who want to keep things running smoothly. You can add apps as and when you need them, scaling up, or specialising on demand.

Supporting practice growth through collaboration tools

Having the tools to work closely with your team and clients can help you deliver a more personalised, specialised service, and take on more complex clients.

Xero’s unlimited users feature means your team and clients can work on tasks together in real-time. Split large projects into bitesize chunks by spreading the workload across your team.

The Xero Accounting App lets you and your clients deal with quick admin tasks on the go. It puts the numbers in your pocket with invoicing, cash flow monitoring, and payment notifications.

Working collaboratively in Xero is simple and secure. Share reports and documents for signing from within the platform. And get a real-time view of financial data, which can be shared with clients in easy-to-read dashboards.

Close collaboration can strengthen the bonds between you and your clients, encouraging more trust and – as a result – more work.

Optimising workflows and improving productivity

Consistently improving your processes happens easily when you have reliable software to build on. Xero lets you spot areas for improvement and growth, with reporting features that give you the full picture.

Use Xero templates or customise your own reports for specific insights. See profitability, practice capacity, and work in progress (WIP). With the data at your fingertips, it’s easy to act on trends and patterns in your business. And by continually refining your processes in light of the data, you’ll become more productive and successful at what you do.

Successful practices don’t happen by accident and the right software can help you achieve growth on purpose. Xero provides you with a suite of features and integrations to grow your practice in a way that suits you, with simple solutions to traditionally complex and time-consuming financial tasks. Discover how Xero can help you automate tasks, improve team efficiency, and better serve your clients.