How to Improve Your Cash Flow With Automation

Oct 3, 2022 | Automations, Cashflow

Managing cash flow can be one of the biggest challenges that tax professionals face in their business. In fact, a recent study from Intuit found that 61% of small business owners struggle with cash flow. Yikes! While there are many strategies out there for maintaining a healthy flow of money in your practice, none are as easy as automation!

When applied correctly, automation is an incredibly powerful tool that can help improve your cash flow while simultaneously reducing your workload and stress level. That means, instead of worrying about how to pay the bills, you can start focusing on more important things, like finding new clients and creating a bigger impact with your business.

Now, let’s talk about 5 easy ways that automation can actually help improve the cash flow in your practice! Keep in mind that I am a TaxDome Expert and prefer it as my automation tool, but these strategies can be implemented with other automation tools as well.

5 Easy Ways To Improve Your Cash Flow With Automation 

  1. Elevate Your Client Experience 

Think about it…By automating the way that clients can pay you, they are more likely to pay you! Whether you’re using QuickBooks Online or another merchant service, automating payments through a secure client portal can increase your cash flow while reducing confusion and miscommunications.

Keep in mind that having simple, streamlined automations can have a positive impact on your clients. By providing an elevated customer experience, you can rest assured knowing that your clients are happy with your service and, in turn, happy to pay you!

  1. Use Automatic Invoicing & Communication Tools

Having an automated invoicing system in place will not only increase your cash flow, but it will also save you and your team valuable time while reducing human error. Using the invoicing tool within TaxDome is super easy and really demonstrates the power of an all-in-one tool.

Automating flows for communication will ensure that email and contact info is correct, scopes of work are being followed, and letters of engagement are easy to find. You can even create templates that make it that much faster to hit the ground running with each new client that you onboard.

  1. Locking Documents With An Invoice

This may sound counterintuitive, but having the ability to lock certain documents with an invoice creates massive efficiency in your practice! Requiring your client to pay an invoice before accessing or signing documents (the 8879, for example) means that your cash flow will automatically improve.

You can also apply this type of automation to other services you provide based on the scope of work. By having your client pay an invoice before they see certain documents, you will now be paid at the actual time of service! This is a novel idea for all tax pros who usually perform hours and hours of work before seeing any money.

Now, you will most likely experience some push back when rolling out this feature, but rest assured that most clients understand the importance of upfront partial billing for high value services and will come around pretty quickly! Many tax pros don’t realize how much work and effort they put into making things easy for their clients, when ultimately, this automation is really simple for their clients as well. No longer will you be chasing down your clients for weeks or months trying to collect payment after services have been completed.

  1. Sending Automated Standardized Invoices or Deposit Requests

Another way to dramatically increase your cash flow with automation is by sending automated standardized invoices. A great example of this is to send deposit requests to your clients before any work is performed. Some tax pros think “Oh, I would love to send deposit invoices but it sounds like too much work!” But with the power of automation, it’s literally just a click of a button that happens in conjunction with the other automations that you build out.

The beauty of using automatic deposit requests is that you’re getting that money upfront in your tax season! Requesting to be paid a deposit motivates your client to follow through on their end because they’ve already invested in your service.

  1. Easily Integrate with QuickBooks Online 

Last but not least, the power of automating with TaxDome (or your current tool) is that it easily integrates with your QuickBooks Online system. If you use QBO in managing your practice’s books, it perfectly merges all of the invoicing and takes away another step in your process, thus saving time and improving cash flow.

Final Thoughts 

If you want to streamline your practice and improve your cash flow, automation with TaxDome is the way to go! It’s simple, efficient, and makes every aspect of running your business that much easier. Why not give it a try and see how your cash flow improves?

 Learn more about Workflows for Tax Pros and streamline your business today!

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Hi! We’re Jamie and Jessica, the dynamic duo behind Workflows for Tax Pros.

With a combined 20 years in business, we’ve learned a thing or two about building successful, streamlined businesses that enable professionals like you to build lives they love.

Our goal with this blog is to provide Tax Pros like yourself resources to build a profitable, peaceful tax practice that you can scale without creating more stress!

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