CPAs blame a variety of issues for the inefficiencies in the industry. Although the answers varied, they boil down to one of five categories: no central access, inconsistent formatting of reports, redundancy - and biggest two - time compression and client issues.
While these are all problematic, we believe they are all caused by one overriding inefficiency, a balance-based workflow. A balance based workflow at best allows a CPA to begin work on all their returns and financial statements after year-end, and there is no truly effective way for CPAs to offer proactive services.
BaCo Tech differs from other solutions by offering a transaction-based workflow. Transactions are real-time, so our window of time to work on financial statements and tax returns extend from about 60 days before the deadline, to almost 470 days, from the start of the year. BaCo Tech stands out because rather than starting work by February, it allows practitioners to finish work by February, for every client of the firm.
No Central Access
“I have no consistent way to get client balances. Accessing client’s files requires a login to their software or a hosted server for us to go get them ourselves. Maintaining the passwords and login credentials is a security concern and if something changes, we can lose hours at the most critical time just trying to log in."
"My clients are on multiple accounting platforms and they all format reports differently. Some have the account numbers and account names together, some in separate columns, some separated by a dash, a space, or a dot. Creating any sort of consistent workflow from those balances is very time consuming, if not impossible."
Time Compression, pt. 1
"As a tax preparer, all of my work for the whole year will come across my desk in roughly a 60-day window. Most clients get us their year end balances around February 15th, leaving us little time to actually get anything done so we spend the majority of that 60-day window filing extensions so we can have enough time to work."
Time Compression, pt. 2
"Simply put, there is not enough time for me to do the work I need to do and finish ‘on time.’ If there is any interruption to our work – like the pandemic and PPP loans – we are left exposed because we are having to navigate more services for our clients, within the same amount of time."
"Just because clients buy accounting software doesn’t mean they are an accountant. The balances and reports that they send us are often inaccurate or incomplete, and almost always late. The issues in their balances require conversations and questions that the client may know not the answers to.”