The Problem
One of the main causes of frustration for accountants is the inconsistency of clients' records. This can vary from a shoe box brimming with receipts to an incomplete set of records on an out-of-date version of Sage.
However they all need to be dealt with and this can cause problems. First of all, you may become frustrated by the amount of time needed to bring the records into good order, which can place a strain on your internal operations.
Secondly, and perhaps more importantly, if you have to take more time to do a job than envisaged you must choose your course of action. Do you just bite the bullet and complete the accounts for the agreed fee or do the work and bill by the hour?
Increasing your fees is not in itself a bad thing of course, but the knock-on effect could damage your business. If clients think they are being overcharged you could lose them.
This is the crux of the problem. The way your clients keep their records can affect your retention levels.
The solution
The solution is, effectively, to help your clients help you. This in turn allows you to meet their expectations better and not be forced into increasing fees to compensate for their poor records.
Creating a series of standardised record books would do this to a certain extent. It would be easy to put in place, and your clients could be trained to record transactions more routinely. However, apart from being somewhat old-fashioned, this would still need to be inputted onto your computer system at some stage, taking more time and incurring costs.
It would be far better to have all the data in a computerised format, where it could be transferred to your internal systems more easily. This is where accounting software is invaluable. It is easy to implement, and you are almost guaranteed to get the information in a standard format. Many software houses, including Sage and Quickbooks, already offer solutions but the programs can be complex and have to be installed on each client's computer.
Recently though, software has been developed that uses the latest web-based technologies to streamline the process. Known as 'Software As A Service' (SaaS), this sits on a webserver, and is accessed via a standard web browser.
A number of companies have recognised that this technology can be much easier for clients to use than traditional accounting software. There is no need for installation and, as you are always using the latest version, you do not need to "run and update" to fix bugs or get the latest features. Furthermore, as an accountant there are other benefits that could improve your customer service and perhaps your bottom line.
The main advantage is that, potentially, all your clients will send you their records in a standard format. Of course this applies to traditional software, but with SaaS systems you have instant access to the records. You don't have to chase the client as the information is there for you at any time, and it can be retrieved at any time.
Also, the ability to adjust the records during the year, rather than after the year end has been closed, has clear benefits.
This has an effect on the time needed to process your clients' accounts. Major time savings have been reported.
Imagine if...
- Your clients' accounts were available to you without having to chase them up;
- They came in a standardised format;
- With the majority of the records completed fully and accurately.
In your office you would be free to perform the accountancy process without the usual time-inefficient process of obtaining and correcting the records.
Imagine if, on top of all this, you and your clients were using a constantly evolving system that required no effort for you to have the very latest version. This would mean you could get the benefit of any new time saving features instantly.
This technology sometimes sounds too good to be true, but it is here, and it will become more widespread.
Summary
In conclusion, computing technology is being directed more and more towards business, with the underlying aim of improving financial performance.
As part of this evolution, accounting software nowadays is almost universally used by practicing accountants. It is only recently though that accountants have started to realise the benefit that can arise from their clients also using good quality bookkeeping or accounting software. The standardised records produced this way can help save time in the accountant's office and also help the client feel a better service is being offered.
Previously it required a great amount of effort to encourage use of software even before the daunting task of learning how to operate it. Assuming these obstacles could be dealt with, other procedural problems, such as how to get records from clients to accountants, meant operating the procedure was never the easiest of tasks.
With the advent of web-based accounting systems using the "on-demand" model, such problems have been overcome, leaving the accountant free to enjoy the advantages, without any of the difficulties.
The latest online accounting packages have been designed with the user in mind as they provide an easy yet efficient way for the non-expert to record business finances accurately. At the same time though there is a major benefit to the users' accountants by way of increased efficiency and customer care.
