Real Process Improvement

Kurt Gödel, famous Austrian-American logician on perspective states, “To understand the system you are in, you have to get outside of it”.  Approximately 10 years ago I traveled to India to learn more about how Indian outsourcing companies refine tax return processing and utilize workflow software.   On my return from that trip I declared it was about workflow and processes, not cheap labor. The Indian’s also referred to Six Sigma and how to focus on driving errors out at the lowest possible level rather than at the manager or partner level as most firms do in the United States.  Today we have workflow software in the United States (from all the major vendors) and firms are focusing on their processes.

Three areas in which the technology has changed, yet most firms continue to utilize outdated processes are: tax return preparation, billing and collections and preparation of reports (financial statements).  A few firms report significant success in this area. However, outside assistance, leadership and change management are key ingredients.  Innovation is only incremental when you put a group of similar thinking people (CPAs) in a room.  Innovation is exponential when done at the intersection of multiple disciplines and perspectives.  WIP and AR should not be a problem in your firm!  If they are, look at your pricing strategies, billing procedures and agreements.  Electronic banking platforms are available to save time, energy and effort in billing and collections.  Different thinking, new processes and leveraging ACH payments can make a significant difference in your firm.  View the Hartmann, Blackmon & Kilgore video on Tax Process Workflow (login required).