Cultivating a Culture of Continuous Improvement in Accounting

About the Author: Katie Thomas, CPA, is a content creator, 2021 & 2022 40 under 40 CPA Practice Advisor recipient, Top 50 Women in Accounting recipient, and the owner of Leaders Online, where they help accounting professionals increase their impact, influence, and income through thought leadership and digital marketing. Feel free to visit Leaders Online or connect with her on LinkedIn to get in touch with Katie.

Continuous improvement is integral to career growth and crucial to an efficient accounting department. For CFOs and accounting leaders, embracing innovation and adaptability isn’t just a nice-to-have; it’s a necessity. This involves more than just fulfilling mandatory CPE requirements—it's about fostering a mindset of constant refinement, leveraging new tools, and encouraging proactive problem-solving.

Why? 

To start, based on FloQast’s research, there’s estimated to be a 160k CPA shortage in 2025 and 30% fewer accountants available in the next ten years. The talent shortage is set to worsen before it gets better. If you’re not innovating and doing more with less, meeting the challenges of today and tomorrow will be much harder.

Beyond the talent gap, accounting departments are facing economic shifts, evolving compliance demands, and an ever-growing need for skilled accountants. In this context, embedding continuous improvement as a core objective is crucial.

So how can you cultivate this culture of continuous improvement in your accounting department? Let’s find out.

1. Building a Culture of Innovation and Refinement

Cultural innovation starts at the top. As a CFO, you lead by example, set the tone, and cultivate a mindset of continuous innovation and adaptability—essential traits for thriving in an ever-changing landscape. If you’re not “walking the walk,” no one else will either.

It’s up to you to establish a culture where people feel empowered to share their ideas. Regular feedback loops and discussions with accountants and controllers are crucial. These interactions enable team members to ask questions, suggest changes, and identify what is and isn’t working, driving meaningful innovation within the department.

By promoting open feedback, innovation, and problem-solving, you’ll create a culture of professionals who continue to refine processes, innovate, and shift from being stewards of workflows to those who drive process improvements. 

CFOs who don’t have feedback loops can begin following a simple five-step process:

1. Offer easy ways for accountants to provide feedback without judgment or repercussions.
2. Analyze all feedback and speak to any necessary stakeholders if you need further details on certain recommendations.
3. Acknowledge that you have heard the feedback.
4. Depending on the feedback, act on the findings.
5. Update the person who gave the feedback on any changes that are being made to address it.

Of course, while you likely can’t act on all of the feedback that you receive, it's essential to thoughtfully consider each recommendation. Some ideas may not align with immediate business goals, so having priorities is key. It’s up to you and your department to sift through what feedback supports strategic objectives and can have the most impact. 

2. Aligning Improvement Efforts with Business Goals

Driving efficiency when 44% of professionals don’t understand why things need to change is challenging. As accounting evolves from task execution to strategic contribution, it's crucial to communicate how continuous improvements support the company's business goals.

As CFO, you play a key role in ensuring these improvements align with broader company objectives, bridging the gap between day-to-day changes and long-term strategy.

Ask yourself these three questions:

• What is the reason for the improvement?
• How does the improvement inch the company closer to its goals?
• If an improvement doesn’t help the business reach its goals, is it necessary?

Long-term goals are the cornerstone of a culture of continuous improvement. With fewer employees and increasing demands, it's the perfect time to leverage automation and technology to fill the gaps.

By embracing these essential tools, accountants can boost productivity and find greater fulfillment in their work.

3. Embrace Automation and Technology

Thanks to automation and AI, accountants can shift their focus from time-consuming manual tasks to rewarding strategic activities that drive businesses forward. Streamlining these routine processes also means teams can get more done with fewer resources -- an essential advantage given the growing talent shortage.

To maximize the benefits of automation and technology, you need the right solutions.

Look for tools that consolidate accounting functions under one centralized platform to make process refinement and optimization simpler and more intuitive. Further, be sure to consider investing in platforms that influence every step of the accounting journey, ensuring cohesive support across all processes, from closing the books to generating real-time financial insights.

For example, FloQast’s Accounting Transformation Platform, helps accounting departments align their operations with broader business goals by offering a suite of tools that:

• Provide real-time insights
• Streamline workflows
• Improve visibility across financial processes
• Provide AI-powered analytics
• Reduce reconciliation time by 38%
• And more

With a comprehensive platform like FloQast’s, accounting teams can minimize time on routine tasks and redirect their focus toward high-impact areas, where data-driven insights enable continuous improvement and strategic decision-making.

4. Leveraging Data-Driven Insights for Continuous Improvement

Data is one of the most valuable tools for continuous improvement because it paints a clear picture of what’s working and what’s not.

Use data analytics to:

• Identify inefficiencies in workflows.
• Track performance metrics to identify areas of improvement.

Data-driven insights will allow you to evaluate where you’re at now and the results of past changes, so you can make more informed decisions about future changes.

After all, continuous improvement isn’t just about identifying what’s not working right now. It’s about learning from past decisions and leveraging those insights to make smarter, more effective decisions in the future.

The right accounting workflow solutions often provide the analytics and real-time data that departments need for continuous improvement.

5. Continuous Learning and Development

Encouraging ongoing education and development is at the heart of cultivating a culture of continuous improvement. 

Continuous learning prevents stagnation and ensures teams are:

• Sharpening their technical skills
• Up to date with the latest industry advancements and changes
• Honing essential soft skills, like problem-solving, organization and time management

Ultimately, a focus on continuous learning and development positions accountants to thrive in an industry that demands agility, adaptability and expertise. 

But how can you encourage continuous learning and development?

• Consider solutions like FloQademy, which offers free CPE/CPD offerings for accountants
• Encourage enrollment in seminars and workshops offered by academic institutions and industry organizations

When you make ongoing education a core component of your culture, you ensure your team stays at the forefront of their field and is ready to navigate the complexities of accounting in the years to come.

Final Thoughts

Building a culture of continuous improvement positions CFOs and accounting departments to adapt and innovate to meet the challenges of accounting today and in the future. 

The process starts with making innovation, refinement, and continuous education key components of your culture. Embracing automation and technology and leveraging data-driven insights will help teams work more efficiently and leaders make more informed decisions. 

To ensure success, CFOs and teams must ensure that every improvement aligns with the business’s overarching objectives. When everyone is aligned and moving in the right direction, true improvement can happen.