A new report has revealed that workflow remains a top challenge for accounting firms, with inefficiencies, client communication delays, and manual administrative tasks are the biggest concerns.

The third edition of the Financial Cents State of Accounting Workflow Automation Report offers a detailed analysis of the most significant workflow challenges that emerged in 2024.

It draws insights from 816 accounting, bookkeeping, and tax firm owners, primarily in North America.

The report revealed that getting documents from clients is still the biggest workflow issue and workflow inefficiencies continue to impact firm owners’ work-life balance.

According to the survey, 53.8% of companies spent more than 5 hours a week scheduling and assigning work prior to automation. Moving to automation allowed 75.8% of companies to reduce this time to 5 hours or less, significantly enhancing efficiency.

59.2% of companies reported that they have succeeded in their initial attempts at solving workflow issues and 66.1% of firms evaluate the success of workflow automation by how smoothly their systems and processes run.

Many companies still depend on spreadsheets and recognised the need for automation when they start hiring staff, lost track of key tasks, or struggled to meet increasing client demands.

Centralised dashboard is the most sought-after workflow software feature for 73.9% of respondents, followed by client reminders (69.3%) and a client portal (60.6%).

Recurring task automation remains a high priority and some respondents reported that workflow inefficiencies resulted in losing clients.

These findings highlight how workflow automation can enhance collaboration by offering real-time visibility into tasks, centralising communication, and streamlining handoffs between team members.