The COVID-19 pandemic has redefined the notion of work for most Australians. It has also brought the benefits of adopting new technologies into sharp focus. Streamlining processes and automating simple tasks have given workers additional time to perform their jobs more effectively and efficiently. For accountants and bookkeepers, leveraging automation is a significant contributor to increasing capacity and profit margins.
Recoverability is more than percentages
Automating tasks improves recoverability, which is the comparison of the invoiced value of billable time to the calculated WIP (work in progress) ledger value of billable time. It can be shown in two ways – either the dollar value of the difference (write-on/off) or as a percentage (the invoiced amount divided by the billable time).
But recoverability is more than percentages; it’s also about pricing and processes, says Nattika Munro, senior practice solutions expert at accounting software provider Dext.
By automating the repetitive tasks of accounting and bookkeeping, accountants have more time to focus on maximising their chargeable time.
“First, firms need to understand what makes up their recoverability equation,” says Munro. “Then, they need to revise processes that occur within their firm and the pricing structures that contribute to the recoverability equation.”
Dext Prepare and Dext Precision deliver for practices
By using data capture and automation tools such as Dext Prepare and Dext Precision, users can save time on processes by capturing and categorising pre accounting data, which leads to increased recoverability.
Dext Prepare is a data capture tool. Instead of accountants having to chase their clients for receipts, clients can simply take a photo and upload the image to the Dext Prepare app.
“The image is then read using OCR technology and, with the right settings, the transactions can be automatically integrated with one of Dext Prepare’s bookkeeping software integrations,” explains Munro.
Analytics tool Dext Precision helps with data quality and assists accounting firms in gaining insights into their pricing structures. It provides a full oversight of a team’s performance metrics in a simple, single view.
“Precision’s focus is data quality. After integrating with your bookkeeping software, Precision analyses the general ledger, examines its history and provides data regarding the client file activity.
“It allows a business to gain further insights into an accounting file, aiding accountants and bookkeepers to have informed discussions about pricing with their clients because they’ve got quantifiable data,” she says.
Data is king
Being able to look at client files holistically can also allow accountants and bookkeepers to identify additional services they could offer clients, says Munro.
“The data, being automatically synced with your bookkeeping software, lets you know what the extra services are that your client may need,” she explains.
“You’re in a position to see quickly if they’re reliant on one particular customer and perhaps need to diversify. You might see their inability to make payments, so you could provide advice to that client on their cash-flow position.
“It allows for the creation of additional revenue streams and you can then increase your pricing and recoverability from that client,” says Munro.
“It allows for the creation of additional revenue streams and you can then increase your pricing and recoverability from that client.”
“Our goal is to help accountants and bookkeepers provide value and thrive in the age of automation. If this allows an accountant or bookkeeper to increase their recoverability as a result, then using Dext is well worth it.”
Find out more at dext.link/acuity