5 Time Consuming Tasks Your Accounting Firm Should Stop Doing

Five Time-Consuming Tasks for Accounting Firms (and How to Streamline Them)

Manual processes often leave accountants feeling overworked. Accounting firms often find themselves bogged down by time-consuming manual tasks that eat into productive hours. In fact, 92% of accountants say they spend too much time on administrative work, yet only about half have automated their recurring tasks. The good news is that modern software and process improvements can drastically reduce this workload. Below we highlight five of the most time-intensive tasks in accounting (spanning general workflows, tax prep, bookkeeping, client communication, and IT issues) and offer solutions – from automation and specialized software to simple process optimizations – to improve efficiency.

 

1. Month-End Close and Financial Reporting

Why it’s time-consuming: Closing the books each month requires reconciling accounts, consolidating data, and preparing financial statements. When done manually, this “dreaded” month-end process can stretch on for days or even weeks, putting strain on staff. Gathering data from different sources is often slow and error-prone, especially if spreadsheets are involved. These delays not only consume staff time but can also postpone critical business insights.

 

How to streamline: The key to speeding up month-end is automation and better workflow management. Leveraging accounting software with close management features or add-ons can accelerate reconciliations and report generation. For example, using automated checklists and integrations in tools like QuickBooks Online Advanced or FloQast helps ensure all tasks are completed and data flows seamlessly into your financial reports. Practical steps include:

 

• Integrate systems: Ensure your accounting, banking, and sub-ledger systems are connected so data updates in real-time. This reduces manual data transfers at month-end.

 

• Use closing software or features: Utilize dedicated close management tools (e.g., FloQast, BlackLine, or built-in features in your accounting software) to automate reconciliations and roll-forward schedules. These tools can automatically match transactions and flag discrepancies, freeing you from hours of cross-checking.

 

• Standardize and plan: Implement a standardized close checklist and timeline. Assign responsibilities and due dates for each step of the close. A well-defined process prevents last-minute scrambles and distributes work evenly throughout the month.

 

By automating routine close tasks and following a consistent process, firms can significantly shorten the closing cycle, allowing the team to focus on analysis and advising once the period is closed.

 

2. Tax Preparation and Filing

Why it’s time-consuming: Annual and quarterly tax prep is one of the most labor-intensive tasks for accounting firms. Collecting myriad client documents, entering data into tax software, and double-checking for accuracy and compliance takes enormous effort – often involving long overtime hours during tax season. It’s not uncommon for small businesses (or their accountants) to spend dozens of hours on preparing a single year’s taxes; one survey found many small companies average around 80 hours on tax prep alone. The complexity of ever-changing tax laws and the meticulous documentation required make this process a major time sink if done manually.

 

How to streamline: Automation and digital workflows are game changers for tax preparation. Specialized tax software can import data and handle calculations that would take a person much longer. For example, linking your accounting system to your tax prep software (such as Intuit ProConnect, UltraTax, or CCH Axcess Tax) allows financial data to flow in without re-keying numbers. According to Thomson Reuters, an automated tax workflow saves time by reducing manual data entry, pulling client info from integrated systems, and even sending automated reminders for missing information. Here are some ways to optimize tax prep:

 

• Use OCR and scan-and-populate tools: Rather than entering W-2s, 1099s, and receipts by hand, use OCR-enabled tax tools (e.g., SurePrep 1040SCAN or TaxJar) that can scan documents and auto-populate tax forms. This cuts data entry time dramatically and reduces typos.

 

• Adopt a client portal: Implement a secure portal where clients can upload their tax documents and see a checklist of required items. This minimizes back-and-forth emails. Automated reminders from the portal can nudge clients to provide missing forms, keeping the process on schedule.

 

• Standardize the workflow: Develop a repeatable tax preparation process using templates and checklists for each stage (initial data gathering, preparation, review, e-filing). Tax practice management software (like Karbon or Jetpack Workflow) can help track the status of each return and ensure no step is overlooked.

 

• E-file and e-sign: Wherever possible, file returns electronically and use e-signatures for forms like the 8879. This not only saves mailing time but also instantly confirms receipt, speeding up the overall cycle.

 

By embracing these tools and practices, firms can handle a higher volume of returns in less time and relieve staff from the most tedious aspects of tax season, all while maintaining accuracy and compliance.

 

3. Manual Bookkeeping (Data Entry and Reconciliation)

Why it’s time-consuming: Daily bookkeeping – such as entering transactions, coding expenses, and reconciling bank accounts – is a classic time drain if done by hand. Manually keying in bills, invoices, and receipts is one of the most tedious tasks in the profession, and it’s highly prone to human error when volumes are high. Likewise, doing bank reconciliations by eyeballing statements against ledger entries can consume hours. In fact, performing reconciliations manually is so inefficient that only about 45% of accountants report automating this task, despite its repetitive nature. All told, traditional bookkeeping eats up valuable time that could be spent on analysis or advising.

 

How to streamline: The solution is to automate as much of the bookkeeping process as possible. Modern accounting platforms have built-in automation for data entry and reconciliation that can eliminate much of the grunt work. For example, cloud accounting software can automatically match transactions in real time, keeping records up-to-date without hours of manual effort. Consider these optimizations:

 

• Bank feeds and rules: Use software like QuickBooks Online, Xero, or Sage that offers live bank feeds. Transactions from bank and credit accounts will import automatically. You can then set up auto-categorization rules (e.g., always book gas station charges to Fuel Expense) so the system codes many entries for you. This drastically reduces manual posting.

 

• OCR and receipt capture: Deploy apps that use optical character recognition (OCR) to read receipts and invoices. Tools such as Dext, Hubdoc, or Receipt Bank can scan a stack of receipts and push the data into your accounting software (date, vendor, amount, etc. captured automatically). This turns hours of data entry into a quick review task.

 

• Automated reconciliation: Take advantage of bank reconciliation features that auto-match transactions. Many accounting systems will suggest matches for deposits and checks to your books. Dedicated add-ons like AutoEntry or built-in AI can reconcile the majority of items and flag only the exceptions for your attention. By letting the software do the matching, you save time and catch errors earlier.

 

• Batch processing: Encourage batch-processing of routine bookkeeping tasks. For instance, rather than entering bills one by one, upload them in bulk or use a payable automation tool (like Bill.com) to handle the entire workflow from invoice receipt to payment. Similarly, schedule a periodic review of uncategorized transactions rather than interrupting work for each item in real time.

 

With these improvements, bookkeeping can largely run in the background. Accountants then spend minutes supervising and reviewing, instead of hours punching numbers. The result is real-time financial records with far less manual effort, giving you more time to focus on value-added activities.

 

4. Client Communication and Document Chase

Why it’s time-consuming: Accountants often spend an inordinate amount of time chasing clients for information and managing communications. Whether it’s gathering year-end statements, clarifying transaction details, or simply scheduling meetings, the back-and-forth emails and phone calls add up. Without the right tools, firms resort to endless email threads and ad-hoc phone tag, which is inefficient and hard to track. Clients can also be slow to respond or forget to send documents, meaning staff must send frequent reminders. This process not only delays your work but also eats into your day with administrative follow-up. In the digital age, clients increasingly expect a better system – one where they can share information easily at any time. Firms that lack a client-friendly portal often endure “constant back-and-forth emails” that frustrate both sides and waste valuable time.

 

How to streamline: To reduce the communication drag, firms should implement structured, tech-enabled communication channels. A secure client portal or collaboration platform can centralize all exchanges, making it easy to request and receive information. For example, solutions like Client Hub, Liscio, or ContentSnare provide a single dashboard for document requests, status updates, and client Q&A. These tools automate the document collection process with scheduled requests and reminders, so you spend far less time following up on missing files. Here are some specific ways to improve efficiency:

 

• Use a client portal for documents: Instead of emailing sensitive files, invite clients to a secure portal where they can upload documents directly. Set up template requests (e.g., “Upload this quarter’s bank statements”) that you can reuse for each client. The portal can send automatic reminder emails if the client hasn’t uploaded a document by a certain date, taking you out of the loop for routine follow-ups. Both you and the client can see what’s outstanding at a glance.

 

• Automate appointment scheduling: Eliminate the email ping-pong of scheduling meetings by using a tool like Calendly or Microsoft Bookings. Clients can self-schedule calls or appointments based on your available slots. This ensures meetings are arranged with minimal effort and reduces no-shows by sending automatic reminders.

 

• Leverage collaborative communication tools: Rather than relying solely on email (where threads can be lost or piled up), consider using a messaging platform or practice management system that supports real-time communication. For instance, some firms set up Slack channels for clients or use Microsoft Teams for quick questions. You can also integrate reminder bots that nudge clients for info. This kind of structured communication (with channels or chat logs per client/project) means less time sifting through inboxes and more transparency on both sides.

 

• Standardize client touchpoints: Create email templates for common requests or explanations (like a template to request missing expense receipts, or a FAQ sheet for new clients). Standardizing these communications saves time writing individual messages and ensures nothing important is omitted. Many practice management suites allow you to automate sending these templated emails based on status changes (e.g., automatically send a “please review and sign your tax return” email when a preparer marks a return as ready).

 

By streamlining how you communicate and request data, you transform client collaboration from a headache into a smoother, more automated process. This not only saves your firm time, but clients will appreciate the convenience of a modern, organized approach to sharing information.

 

5. IT Inefficiencies and Outdated Systems

Why it’s time-consuming: Many accounting firms are held back by outdated technology and fragmented systems, which create hidden time sinks on a daily basis. If your software systems don’t talk to each other, staff end up manually transferring data between them (for example, exporting reports from one system and importing to another). Older desktop-based applications might lack remote access, forcing cumbersome workarounds. Even simple tasks like software updates or data backups can consume time if you’re managing them in-house without automation. In short, an antiquated IT setup leads to inefficiency – manual processes take longer, are error-prone, and require more human oversight. These inefficiencies not only slow down daily work but also increase the chance of mistakes and rework. Additionally, maintaining legacy systems (or multiple disconnected tools) often means employees spend time wrestling with tech issues instead of focusing on clients.

 

How to streamline: The remedy is to modernize and integrate your technology stack. Upgrading to current, cloud-based solutions and ensuring your various software tools are connected can eliminate a lot of busywork. Simply moving from an old desktop accounting system to a cloud accounting platform can save time by enabling automated updates, remote access, and easy data sharing. Likewise, using an integration platform (or choosing software suites that natively integrate) will prevent duplicate data entry across systems. As one analysis put it, firms that invest in updated tech can “streamline operations” and handle routine tasks “at a fraction of the time” compared to manual methods. Here are some focus areas for improvement:

 

• Adopt cloud-based software: Migrate core functions like accounting, payroll, and document storage to cloud solutions. Cloud software is accessible anywhere (no more VPN hassles), and updates/maintenance are handled by the provider. This reduces IT overhead and ensures everyone is always on the latest version. For example, using Xero or QuickBooks Online instead of a desktop ledger, or Office 365/Google Workspace for collaboration, can immediately boost efficiency and flexibility.

 

• Integrate your apps: Take stock of the software you use (general ledger, tax software, CRM, project management, etc.) and look for integration capabilities. Many modern tools can connect via APIs or services like Zapier. For instance, you can integrate your CRM with your time-tracking or billing system so that client info and billable hours flow automatically, saving you from entering data twice. An integrated ecosystem means data moves seamlessly, and you avoid the “silos and bottlenecks” of a fragmented IT setup.

 

• Automate IT maintenance: Leverage automation for routine IT tasks. Set up scheduled cloud backups for files rather than manual backups. Use remote monitoring and management tools to automatically install software updates and security patches after hours. If maintaining IT in-house is too burdensome, consider a managed IT service so that things like network upkeep and cybersecurity are handled efficiently by specialists, not taking your team’s time.

 

• Streamline internal workflows with tech: Identify any internal processes that are still paper-based or overly manual (for example, tracking project status on spreadsheets, or printing and scanning documents for approvals). Then implement workflow tools or e-signature solutions to digitize these processes. Even simple changes like using an electronic signature platform (e.g., DocuSign) for engagement letters and approvals can save the time spent printing, mailing, and scanning documents.

 

Upgrading your firm’s technology may require an upfront investment, but it pays off immensely in efficiency. By cutting out redundant manual work and speeding up information flow, your team can redirect time away from IT headaches and toward serving clients and growing the business.

 

Conclusion: By addressing these five areas – from improving core accounting workflows to embracing modern communication and IT tools – an accounting firm can reclaim countless hours of productive time. The common thread in all these solutions is automation and smart process design. Freeing staff from tedious, low-value tasks not only improves efficiency and accuracy, but also boosts morale and client service. Accountants can then focus on higher-level work like analysis, advising, and relationship-building. In today’s competitive environment, firms that optimize away time-consuming tasks are the ones that can scale, take on more clients, and provide better insights, all without overburdening their team. Adopting the right software and process improvements now will set the stage for a more efficient and profitable future for your firm.

 

Sources: The insights and statistics above were gathered from industry surveys and expert analysis on accounting efficiency and automation, including reports by Sage, TOA Global, Thomson Reuters, and others.