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Maintaining a competitive and successful accounting practice involves an ongoing process of learning and adapting in a rapidly changing landscape. One critical aspect of leading a thriving accounting practice is effectively managing cash flow throughout the year. By adopting modern tech solutions, accounting professionals can streamline cash flow as well as boost their revenue, expand services, and provide additional value to clients.

Let’s explore the best strategies that accounting professionals can use to prepare for the future and maintain a strong cash flow year-round.

How to Improve Cash Flow for Your Accounting Firm

1. Expand Your Services

Consider building your services to address clients’ needs throughout the year—beyond tax preparation. According to Sage’s The Practice of Now report, 82% of accountants say clients are more demanding today in terms of wider service offerings. Some service expansions can include the following.

• Bookkeeping: Comprehensive bookkeeping and accounting services can encompass monthly or quarterly financial statement preparation, general ledger maintenance, and bank reconciliation. Position yourself as a trusted partner in maintaining accurate financial records throughout the year.

• Financial Planning and Forecasting: Financial planning services help clients set achievable goals, create budgets, and forecast future financial performance. By helping clients make informed decisions, you become an indispensable resource throughout the year.

• Business Advisory Services: Strategic accounting advisory services may involve performance analysis, benchmarking, and providing accounting-specific insights. Act as a consultant to help clients optimize their operations, identify growth opportunities, and navigate challenges.

• Client Advisory Services: A framework for delivering ongoing accounting advice and support is beneficial to clients. Regularly schedule check-ins with clients to review their financial performance and provide specialized advice and customized reports. 

2. Invest in Tech Solutions

Technology has revolutionized the accounting industry, improving efficiency and creating limitless opportunities for innovation. According to Sage, 83% of accountants believe that they need to keep up with the pace of technology adoption to gain a competitive edge in the market.

The newest technological advancements can help accounting professionals prepare for the future. Here are a few key areas to focus on:

• Cloud-based Accounting Software: Transitioning to cloud-based accounting software enables real-time access to financial data, automates routine tasks, and reduces the risk of errors. 

• Automated Processes: Implementing automation tools can significantly reduce manual effort and improve accuracy. Automated processes can handle tasks like data entry, report generation, and more.

• Data Analytics: Using data analytics tools, like CPACharge’s reporting capabilities, can provide valuable insights into client trends, identify opportunities for cost savings, and enable proactive decision-making. 

3. Revamp Payment Processes

Streamline your payments process to manage cash flow more effectively, which can increase your revenue and eliminate time-consuming tasks. Additionally, a convenient payment solution like CPACharge can encourage clients to seek out your accounting services. 

Consider the following strategies to streamline your payment process and improve cash flow.

• Online Payments: Allow clients to pay online with credit, debit, or eCheck—giving them the freedom to choose how they pay, and the flexibility of paying from any location. Additionally, you can accept payments from anywhere. Digitized payments have the additional benefit of remaining consolidated in one centralized and easily accessible location.

• Flexible Options: Increase the number of clients you serve by offering flexible payment options like fee funding and scheduled payments. For example, CPACharge’s Scheduled Payments feature allows clients to pay for services in installments over time. 

• Website Payment Integration: Integrate payment features directly into your website to bolster confidence and create a frictionless path for clients to pay. With this CPACharge feature, clients can access all the information they need, communicate with you, and submit payments—from one starting point.

Learn more about how you can optimize your payment process with our CPACharge Solution Guide. The future success of your practice is waiting for you. Learn More.


Author & Bio:
Swaneet Mand is a Content Writer for CPACharge based in Austin, TX.