Project Management Can Improve Efficiency in CPA Firms

Source: Practical Accountant

Project management is about standardization and replication of processes. It can increase efficiency while improving client service.

The key to project management is being able to standardize procedures. It can be used in the delivery of specialized services or in one-time engagements. It is helpful in budgeting, scheduling (for repetitive work), forecasting staff requirements, internal processes, and processing small recurring projects, like tax return preparation.

Lean Six Sigma is a form of project management and can be used in CPA firms.

Each step of each process is documented to determine if it adds value. The goal is to minimize, or eliminate, those that do not add value. It also eliminates bottlenecks. Suppose, for example, at a certain step in the tax preparation process all the returns go to one person. That person will be a bottleneck. It’s similar to manufacturing.

Accountants are often resistant to project management because they don’t want to change and don’t think they can be taught anything they don’t already know. But imagine a situation where a client dumps his tax information on your desk. You put it aside and look at it when you are ready to prepare the return. Then you discover a lot of information is missing. How much more efficient would it be to look at it when it comes in and make sure all the information is available before you start the return?

Checklists can be personalized for specific clients rather than applied to everyone.

Project management can be Web-based. Collaborative meetings among team members (who may be in different locations) can improve service and efficiency.

Although there is sophisticated software available for project management, it isn’t always necessary. Some use white boards to monitor and control projects.

Software mentioned includes FirmFlow, from GoFileRoom, and Microsoft Project.

The firm needs a project manager for each niche, and that person must have the support of senior management.

For the complete article, click here, select the June 2008 issue, and click on the article Project Management: A Means Efficiency.

From Practical Accountant, June 2008, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.