When you are just starting your journey as an accounting firm owner, everything seems shiny – especially in accounting tools. In today’s day and age, with so many options of accounting tools and software available in the market, it is easy to perceive anything and everything as useful. As you begin to work in real-time, you will often realize only a handful of software and technology are actually useful to you. The best thing about the modern-day accounting tools and software is that they display a mirror right before you – letting you analyze if they have been useful at all. These insights also help you understand how you can leverage these tools to do better in your business.
No matter the number of software and automation tools available, what is best for you will be different from what is best for your competitor – especially when it comes to practice management. The tools should make your lives easier and not add another layer of complication. From helping you manage your time to managing your files and project deadlines, managing your team, and client communication – it should allow you to do all of it. Begin by acknowledging every firm is different and hence, instead of copying what someone else is doing, you should give a deeper thought into the nuances of your firm.
In this article by Finsmart Accounting – trusted globally for outsourced accounting services, we will share strategies to choose the right accounting practice management platform for growth. Let’s start by exploring things to consider:
Choosing the right accounting platform: What to consider?
Accounting firms want to add more services to their portfolio, all of them. However, what they often lack is the strategic thinking needed to support the overall practice growth. Accounting Today, in a recent survey, found that smaller accounting firms, especially, lack the planning and strategy needed to achieve their goals. This does not mean they have no planning. In fact, in this study, a significant number of respondents said that due to newer additions, their plans never become fruitful. In 2023, about 22% of accounting professionals expected to implement one or more strategic growth programs – in 2024, the number remain unchanged.
As a part of the strategy and planning, several considerations need to be made when it comes to choosing the right platform. Here are the top things:
– Cost:
Especially for small accounting firms, this is a key consideration. The installation and use of practice growth software come at a cost. As an accounting firm leader, you should be able to focus on using the capital available wisely, which means considering the budget and the needs. You should be on an experimentation spree. Take time to understand your business needs, the needs of your clients, and those of your employees. You can start by considering free software – the ones that you can use for the basic needs and then move on to the more sophisticated ones.
– The tool’s ability to help you scale:
An accounting business, or any business for that matter is about scaling the right way. When choosing a practice growth platform, make sure to choose one that enables growth. As your client base grows and your service offerings, your platform should be able to integrate the needs, maybe with some minor additions, easily. Scaling should not disrupt the general flow of the tool or it should not compel your firm to immediately make a transition. Make sure to have a plan in advance and ensure your growth plan is in sync.
– Customization:
While there is a need to standardize some of the key protocols and communication with your clientele, if being flexible is your priority, you might not want to standardize everything. It is important to remember that your clients, most often will be varied. For example, their industry could vary, or the services they offer. They can even want to customize the communication they send out to their clients. As a leader, who is looking for constant growth, you should tailor the platform to suit your branding, workflow, and client preferences.
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– Integration capabilities:
Efficiency and productivity are paramount in the accounting industry and that is the key role of practice management software. It is important to choose a platform that can help you streamline workflows and minimize the time required for manual entries. Your practice management software should also be able to seamlessly integrate with other tools that your clients might be using at their end. Integration with the practice management software helps remove the need for manual data entry, saving time and reducing errors.
– User experience:
As a small accounting firm, more often than not, you will not have the time to focus on taking each of your employees through the platform. This means you need software that is mostly self-explanatory and does not need additional training. Before implementing the tool for use, evaluate the design, ease of navigation, and accessibility features to ensure a smooth and intuitive experience for all.
– Support and training:
As a small and growing firm, you will hardly have the time to extend support and training for the tools, especially when either the tool is new or the team member. Look for platforms that offer comprehensive support resources, such as tutorials, documentation, and readily available customer support. A wholesome support system ensures a smooth onboarding process and helps in providing ongoing assistance as and when needed.
Now that you have some idea of how to select the right accounting platform for max growth, let’s discover the top 3 accounting practice management software.
Top Practice Management Software for Growth
– Quickbooks Online Accountant: One of the top tools in the industry right now, Quickbooks Online is designed to manage clients, workflows, and finances, all in one centralized dashboard. Accountants can access the clients’ data, collaborate with team members who might be available across the world, and streamline tasks like expense tracking and reporting, invoicing, etc. It also has built-in tools for tax preparation and compliance. This tool helps simplify the accounting process while ensuring productivity.
– Xero Practice Manager: It is a powerful practice management solution that helps integrate Xero’s accounting software. It is designed to help accountants with the tools to streamline workflow management, project tracking, and invoicing. There are several templates available that can be customized and automated. The Xero Practice Manager helps enhance efficiency and allows accountants to deliver timely and accurate services. It also comes with reporting capabilities, giving the firm valuable insights into performance metrics and profitability.
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– Sage Intacct Accounting Program: This tool offers accountants a specific program that gives them access to a cloud-based financial management platform. It is tailored for small to midsize businesses. With features to automate, collaborate, and see real-time insights, with Sage Intacct, accountants can streamline basic accounting functions, improve accuracy, and deliver strategic financial guidance to clients. This platform also comes with customizable dashboards, multi-entity management, and integration with other applications.
Choosing the right practice management software: Endnote
For accounting firms, growth should be at the center of all plans and strategies in 2024. It is important to choose a platform that is inclusive of all the needs of your accounting firm. By leveraging cloud-based technology, automation, and integration capabilities, accounting firms can enhance productivity, minimize manual tasks, and focus on delivering value for clients. The choice of practice management software should align seamlessly with the firm’s objectives.
If you are struggling to adapt to the client’s use of software, you should consider outsourcing, where the teams are equipped to and are experts in handling several different software, enabling you to serve quality. Write to us at connect@finsmartaccounting.com to know more.
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Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
