5 organizational best practices all accounting firms should follow

February 17, 2022 10:17 AM

Now that 2022 is in full swing, are you looking for ways to boost your accounting firm’s overall success and progression? Do you want to further streamline processes so that your enterprise runs better than ever this year? Yes, it is important to shred and recycle documents you no longer need, delete unneeded emails and other “digital clutter,” and check your firm’s financial statements to maximize its financial health. However, there are so many other ways to amplify your accounting firm's success this year and beyond.

If you are having trouble figuring out how to optimize your firm’s operations, no need to start Googling! In my experience as a CMA and as the CEO and founder of CMA Exam Academy (a Certified Management Accountant exam review program), I’ve discovered a lot of ways accounting firms can improve their operations and boost overall success. Here are just a few organizational best practices all accounting businesses should follow.

Track proper documentation for all company expenses

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You ask your business clients to keep track of all of their invoice payments and receipts for software subscriptions, web development help from freelancers, office supplies and other company purchases. Are you doing the same for your own accounting firm? From payments for CRM and accounting software to your office’s rent and utilities, internet service, receipts for business lunch meetings with clients, and more, you also have a lot of documents to track. This is especially important and super necessary during the audit season!

Yes, it can be difficult to stay on top of tracking your own firm’s documentation for business expenses during the hectic tax season, but continue to make it a priority. The last thing you need is added stress from being unprepared in the event of an audit on your own firm.

Designate standard operating procedures (SOPs) for every accounting function

This is the ultimate way to streamline processes and enhance efficiency in your company. From email templates for client prospecting and onboarding to planned timelines for checking in with clients before, during and after tax season, set up an SOP for every single accounting function. You can even designate an SOP for the aforementioned step of tracking proper documentation for your firm, where you let all employees know that they should submit their receipts and invoices for company purchases to a specific cloud-based folder.

Setting up SOPs for every single accounting process in your firm will help new hires understand exactly how things are done and minimize issues. Make sure to have an easily accessible, cloud-based portal that contains all of the email templates, step-by-step instructional guides for processes, how-to videos, and other SOP essentials that your employees could go to at a moment’s notice. This will help eliminate back-and-forth from them having to ask you for them.

Cross-train staff to maintain efficiency in the event of turnover

We are living in the age of “The Great Resignation” — employees in so many industries are leaving their jobs in vast numbers to pursue new opportunities, and the high turnover is wreaking havoc on companies. You can ensure your accounting firm is nothing short of prepared in the event of staff turnover by cross-training employees so they can handle multiple roles. This will help keep all functions running without disruptions, which will be especially important if a team member leaves your company during the crazy tax season!

For example, you can cross-train an accounts receivable clerk with an accounts payable clerk and vice versa. Thus, if your current accounts receivable clerk were to leave your firm without enough notice to hire a new person to fill their position right away, that former employee’s duties can be easily taken over for the time being by the accounts payable clerk. This will help keep stalls in your firm’s operations at bay and prevent a lot of unneeded stress.

Role security is key

Every single accounting position should have access to specific modules within an accounting system. It is not wise to allow all accounting employees to have access to all modules, as it can open the possibility to fraud, collusion or other major issues that can be detrimental to your firm. For example, payroll clerks should only have access to the payroll module and the clerk entering accounts payable invoices should not be the same person cutting checks or signing them. Also, the person creating employee profiles in the system should not be the same one cutting payroll checks. Limiting access will help eliminate potential problems.

Back up your accounting software!

Think about how stressful it would be if you didn’t back up your software and a disaster happened, such as an in-office flood that destroyed all of your computers. If you regularly backed up your accounting software, it would be a breeze to restore all accounting systems with the most up-to-date data. This would help to eliminate any disruptions and keep your business running smoothly. Therefore, consider making regular online backups and daily offsite backups one of the aforementioned SOPs in your accounting firm!

If you want to take your firm to the next level, consider implementing the above tried-and-true organizational best practices. Track proper documentation for your firm’s business expenses, set up SOPs for every single accounting function, and cross-train staff to maximize efficiency in the event of turnover. Also, only let accounting personnel have access to specific modules within an accounting system and make sure to regularly back up your accounting software. Following these practices will help your accounting firm thrive in the long run.