Create Capacity: Have Accountants Stick To Accounting, Not Admin

We asked Accountants (in Australia, New Zealand and USA) how they could increase productivity, specifically how to complete their work more quickly.

Simply put, if an Accountant achieves 70 percent productivity in a standard week (37.5 hours), then what are they doing for the other 1.5 days (11.25 hours) per week?

The most common reply? ADMINISTRATION. That implies Accountants are doing work which:

• cannot (or should not) be billed to Clients (at least not an an 'accounting' rate)
• Accountants don't find rewarding (low morale)
• Accountants are not good at (Admin tasks require a certain skill set)
• Reduces the firm's capacity to better serve Clients and take on more work

Reducing an Accountant's admin time creates significant additional capacity. Here are some examples:

Assuming each accountant spends 2 hours per day on administrative tasks, 5 days a week, for 45 weeks per year, that adds up to 450 hours per accountant annually. If we apply this to different team sizes, the time savings—and potential additional billing capacity—are substantial.

By streamlining or automating administrative work, firms can unlock hundreds of thousands - if not millions - of dollars in additional billable capacity each year.

How do we get Accountants out of admin tasks to create additional capacity?

Here are some simple steps:

Clearly define admin tasks

See the examples (below) from the group we interviewed.

Hire Administrators to do administration tasks

This includes Client Services Coordinators (CSC). Many admin tasks can be done by remote (even offshore) workers

Refine processes

Ensure that Administrators and Accountants are responsible for their tasks - only! The 18-Step Workflow provides guidance in this area.

Invest in the Organisation's Balance Sheet

This creates long-term (admin) capabilities. As a rough guide, high-performing firms tend to have AT LEAST a 1:5 ratio (Admin team to Accountants).

Raise Accounting fees

Don't 'dilute' the value of Accounting work by simply charging Clients for admin tasks. Charge Clients... but use different rates for Admin and Accounting.

Educate the team

So they understand the importance of clearly-defined roles.

Utilise the newly created capacity

Allocate this time to proactively serving Clients and/or finding new opportunities.

Here's a list of common admin tasks Accountants take on...

• Advising Clients of business/tax registration
• Advising Clients of personal income tax assessments
• Advising Clients of tax file number, social security number and similar
• Advising Clients of tax installment obligations
• Attending to all business regulatory matters including completion of forms
• Checking banking data in from and out to Clients
• Client additions and deletions
• Collation and preparation of electronic work papers
• Completion of annual company returns
• Collation and preparation of electronic work papers
• Contacting Clients for any missing information or general queries
• Dealing with Client taxation authority correspondence
• Fee preparation
• Filling
• Forwarding of other tax-related statements to Clients
• Incorporation of companies
• Logging of each job on the job register / workflow system / project management system
• Making and changing appointments
• Monitoring/doing required tax lodgements
• Monitoring of WIP
• Monitoring of WIP
• Monitoring work checklists to meet regulated due dates
• Monitoring workflow
• Preparation of the first draft of job budgets
• Preparing checklist of information required from Clients
• Printing and binding financial statements, taxation returns and other Clients reports
• Returning Client records
• Reviewing and chasing debtors at the end of the month
• Reviewing and chasing clients running balance or similar account from tax authorities
• Reviewing and checking client source documents when received against checklist
• Systems writing and updating
• Typing and formatting simple reports to Clients

Are your Accountants doing too much admin work?

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.