Discover how financial management software empowers accountants to elevate their advisory role, driving strategic business growth and operational excellence for clients through automation, real-time insights, and seamless integrations.
While MTD may no longer be grabbing headlines due to setbacks, the journey towards modernising financial processes continues to gain momentum. MTD signals more than just compliance; it’s a push towards digitalisation’s business benefits, including efficiency and time savings.
MTD VAT has proven the significant benefits of digitalisation in streamlining and enhancing processes. For accountants and bookkeepers, the challenge and opportunity lie in educating clients about the transformative impact of these tools on their business operations.
“Accountants have never abandoned the idea of digitalisation of accounting and taxes, which are the core objectives behind MTD. Those who fall under MTD ITSA have told us they want the same simple experience extended to their income tax needs,” says Nick Williams, UK product director at QuickBooks.
“HMRC and some software developers, like ourselves, have continued to invest significantly in solving previous delays. This has meant that there has been a surge in the interest expressed in MTD ITSA and our solution.”
Williams notes many accounting firms have already embraced financial management software solutions for their clients, streamlining their workflows and providing them with greater visibility and insights into their businesses.
Collaboration in the cloud allows for real-time clarity of financial performance. Smarter cash flow insights unlocked through these tools lead to strategic decisions and operational efficiency for businesses. Guiding clients through digital adoption with a human touch strengthens advisory relationships beyond the tax deadline.
The promise of streamlined tax preparation and filing offered by financial management software is just the tip of the iceberg. As clients realise the transformative impact real-time data and automation can have on operations and growth, accountants become indispensable strategic advisors.
The sophistication of modern financial software lies in its ability to automate processes, thereby not only reducing the risk of errors but also unlocking strategic advantages for businesses.
AI algorithms enhance accuracy and prevent financial discrepancies before they emerge. Reducing the risk of human error, the monotonous work of number crunching is eliminated.
“Regarding the time constraint, we believe that AI can be transformational in this space, especially in reducing the onboarding and serving time for clients through QuickBooks,” says Williams.
“One notable feature recently launched is ‘Train QB’, which enables users to train the product on transaction categorisation. This allows QuickBooks to learn and automate future transactions coming through the bank account.”
With most responsibilities now automated, newfound hours are freed up business owners, bookkeepers and accountants each week. No longer bogged down by manual tasks, accountants can shift their attention to help clients uncover strategic growth levers – explore new markets, deepen customer engagement and enable innovation.
Quite often, these tools have dashboards that offer at-a-glance insights into financial and operational health, updated in real-time.
As broader trends and granular details become visible, they fuel informed, data-backed decisions. Is cash flow on track this month? Which products are driving the most profit year-to-date? Are operating expenses fixed or variable?
Accountants and bookkeepers can work with their clients to access these answers immediately, pivoting strategies accordingly.
Most financial management tools offer real-time visibility into financial data, helping businesses to harness predictive analytics for superior cash flow management.
Advanced forecasting tools enable accurate predictions of upcoming cash flow highs and lows based on historical invoices, bills and account balances. Armed with these insights, clients can confidently plan finances amidst inevitable business fluctuations.
Complex financial transactions with suppliers and customers are streamlined through automation. Customised billing, instant invoicing, and credit control prevent late payments and improve relationships. Integrating financial software with CRM provides a holistic view of customer interactions and sales opportunities.
As this unified dataset reveals nuanced trends, customer strategy transforms – improving conversion rates, boosting retention, and driving revenue growth through keen data-backed decisions.
The power of integration spans wider than financial data. Connecting complementary systems into a centralised hub fuels a strategic approach to comprehensive business management.
One of the most significant benefits of financial management software is its ability to integrate seamlessly with other business systems, such as CRM and ERP solutions. This integration facilitates a holistic approach to business management, improving operational efficiency and strategic planning.
“We know that accountants are busy and they need time back. Most of their time includes keeping track of customer data and managing their practice workflows,” says Williams.
“This is why QuickBooks has launched QuickBooks Practice Manager which allows accountants to manage all their client data in one place, create tasks and automated workflows for your practice, run reports, and even send and manage emails, documents, and letters of engagement. No matter what financial management software clients use, they can serve through QuickBooks Practice Manager.”
“The modern accountant, focused on efficiency and effectiveness, is in dire need of integrated solutions that streamline their workflows and costs,” says Williams.
CRM systems like QuickBooks Practice Manager help automate repetitive tasks, which can directly impact a firm’s profitability. The benefits extend to team collaboration, with staff able to work on clients’ files, ensuring compliance related deadlines are not missed. Furthermore, integrations allow data transfer between Practice Manager and different applications, minimising the administrative load of manually transferring data.
“It’s far more efficient for accountants to consolidate all customer data within a single ecosystem rather than being scattered across multiple software with varying billing structures and user restrictions.”
QuickBooks has had this front of mind when investing in its Books to Tax capabilities. “We want accountants to be able to serve their clients from QuickBooks, regardless of their needs,” says Williams.
“Now, with Books to Tax we support FRS105, and we will soon be supporting FRS102 Section 1A and Personal Tax Forms SA100, SA102 and SA103 short or full.”
For sectors with specific regulatory requirements, such as the Construction Industry Scheme (CIS), these integrations ensure compliance and minimise manual input, thereby reducing the risk of errors and penalties.
The true value of financial management software lies far beyond fulfilling regulatory obligations like MTD.
It serves as a cornerstone for strategic business growth, operational optimisation, and informed decision-making. Accountants and bookkeepers play a crucial role in guiding their clients to not only comply with regulations but to leverage these advanced features and integrations.
