Surviving the Accounting Talent Shortage With AR Automation

There’s no better time to snag a seat for the Certified Public Accounting (CPA) exam.

According to the Association of International Certified Professional Accountants (AICPA), the number of test takers dropped nearly 50% from 1990 to 2021. Snagging an accountant, however, isn’t as simple; the Bureau of Labor Statistics reports there are 340,000 fewer accountants than five years ago.

The country is dealing with an accounting shortage, and its effects are rippling across the business world.

"Small businesses are out there going, ‘I need this help.’ It's a tougher economy today," Ben Richmond, a certified public accountant, told Inc.com. "The challenge is a lot of the firms aren't either resourced with the right technology or enough people to get to that."

Accountants handle their clients’ finances and serve as advisors on investments and proper cash flow management, which is essential considering more than 80% of failed businesses listed improper cash flow management as a cause, according to American Deposit Management.

"It is scary in the U.S. when you look at how many people don't actually know what their cash flow looks like 30, 60, 90 days out," Richmond says. "You've got all these businesses out there that are operating blind."

AR (accounts receivable) automation is an effective way for accountants and their clients to navigate through this shortage. Rest assured that AR automation will never replace accountants. Rather, it provides features and benefits companies need to manage cash flow and operate efficiently despite working with a smaller financial staff than they’re accustomed to.

This article explains how.

Effective cash flow management

As Richmond states above, companies fly blind when they fail to manage cash flow effectively. A lack of accounting experts may make that a common occurrence, especially during a talent shortage.

Small teams need to complete tasks with speed and efficiency. AR automation simplifies cash management simple by calculating and updating crucial metrics like DSO (Days Sales Outstanding), AR aging, and past-due balances in real-time and presenting them on a clear dashboard that can be accessed immediately.

This information is accurate, updated instantly, and eliminates the risk of human error—which increases when fewer people on staff double-check the numbers.

More time for clients

Your accounting team may be smaller, but you still have the same number of tasks. Completing them may cut down on time spent advising clients.

AR automation performs manual tasks so you don’t have to do them. It automatically sends and reconciles customized invoices while sending out payment reminders and alerts, freeing your employees from making uncomfortable and time-consuming phone calls.

AR automation is scalable, grows along with your business, and prevents you from overwhelming and exhausting your staff as your client base expands. Automating these manual, time-intensive chores provides your reduced team with more time to work with clients.

Enhances client retention

Because of the talent shortage, your clients may understand you’re dealing with fewer accountants or financial professionals than usual, but they’re also trying to run a business. They’ll find someone else if their needs aren’t being met or payment and billing processes become complicated and inefficient.

The right AR automation platform provides collaboration tools that enable you to chat live and connect with clients, resolving issues quickly. It can also enable clients to set up and manage their own digital wallets to securely store payment information and pay invoices by simply clicking a button. Features like Pay Now and AutoPay also eliminate friction from the payment process while getting you paid faster and helping your clients avoid late fees.

AR automation also helps track payment histories and alerts you if a typically prompt client is overdue. That way, you can proactively ask if they need assistance.

Eliminates check usage

Checks remain a popular payment option—especially in the B2B space—but they can lead to trouble. Checks drive up DSO because they need time to arrive, deposit, and clear. What’s most troubling, however, is check fraud, which will cost businesses $24 billion in 2024, according to the American Bankers Association.

AR automation enables your clients to pay through ACH (Automated Clearing House) and with credit cards, methods that are far speedier and way more secure than checks. These digital payments can’t be swiped out of a mailbox or stolen from a postal worker and take far less time to process, giving you quicker access to the cash you’ve earned while safeguarding your clients’ financial data.

Unlike checks, which are manually invoiced and can get lost or accidentally discarded (especially when you’re working with an overworked and harried team), digital payments are automatically reconciled into a secure digital platform.

This feature not only cuts back on manual labor but enables you to access payment information with ease rather than wasting hours looking through filing cabinets.

Simplifies the process

Introducing new software to a small team can be daunting, especially if you and your staff aren’t technically savvy.

AR automation wasn’t built for tech experts. Rather, it was created to make life easier for business owners and financial professionals. The right AR platform requires less than an hour of training and eliminates friction by syncing automatically with your team’s existing accounting systems.

You don’t have the time to deal with chatbots or outsourced answering services. That’s why choosing a platform featuring an in-house, U.S.-based support team is crucial, ensuring you talk to someone whenever you call for assistance.

Conclusion

We’re hopeful the accounting talent shortage is temporary. In the interim, AR automation enables your team to effectively service clients even when dealing with small numbers.

The right AR automation is easy to use, syncs with existing accounting software, and strengthens the buyer-seller relationship.

Visit us at Intuit Connect

Headed to Intuit Connect on Oct. 28-30? If so, stop by the Bill360 booth! Bill360 provides innovative AR automation that streamlines operations for B2B accountants and their clients.

Bill360 requires less than an hour of training and syncs with QuickBooks and Xero in a matter of minutes while ensuring you and your clients get paid faster and run more efficiently.

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