Why do you need accounting practice management software?

What is accounting practice management software?

Accounting practice management software is a powerful all-in-one computer application designed for accountants and bookkeepers. It is one of the most essential tools that accounting professionals could have under their belt to run their business effectively.

Accounting practice software helps professional accountants manage every aspect of how their practice operates daily. Put simply it:

• It tells you who did what, when and how,

• When deadlines have been met,

• What tasks are overdue?

Four essential components should form part of every accounting practice management software: workflow, client management, time and billing, and reporting and insights.

Workflow management software

As accounting firms take on more clients, this will inevitably lead to more work, and you'll have less time to meet these increasing client demands. accounting practice management

For accounting practice management to thrive in this incredibly fast-paced environment, you can no longer rely on Excel documents and calendars to manage your teamwork. You will need workflow software to help you manage your jobs, streamline your processes, hit deadlines and reach your practice goals.

Workflow management software can help your accounting practice lighten its caseloads while being able to spend more time building relationships with current and potential clients.

Find out more about this topic here: best workflow management software features for accountants.

Time and billing software

Tracking time is a primary goal of modern accounting practice manager who spends hours completing lower-level tasks that can zap time. This is why time and billing software is vital, helping you to complete tasks faster and more efficiently.

Time and billing software enables accounting practices to track and control their staff productivity to ensure a maximum return on client work by improving efficiency and billing, giving you a competitive advantage for your practice as you have space to make room for more billable work.

For more information on this topic, read our helpful blog: time saving tips for busy accountants.

Accounting client management software

For many practices, remaining compliant means multiple, time-consuming interactions with clients. Those seemingly endless back-and-forth emails and phone calls to ensure all the i's are downtime-saving and t's are crossed.

Every project and every client bring reams of paperwork, in various stages of completion, passing through many pairs of hands. Without client management software for accountants to track and manage multiple interactions and versions of documents, the risk of error increases.

Accounting client management software organises your client data and stores it in a central place where it can be easily accessed. By tracking client activities through client accounting software, you'll ensure you always have the most up-to-date information for meaningful conversations to elevate client relationships in your accounting practice.

Reporting and insights

Using reporting and insights, your accounting practice can create performance reports and dashboards that will provide instant access to insights to make data-driven decisions across your practice.

You'll get quick and easy access to insights with your KPI data presented as intelligent dashboards, extract industry-leading reports to deliver results internally and for clients and use client insights to be more proactive in your decision-making.

You can find out more KPIs you should be tracking for your accounting practice in our handy guide: the 11 best KPIs your accounting practice should be tracking.

Common issues solved by accounting practice management software

If you decide to move forward without accounting practice management software or choose the wrong system for your practice, growing and scaling your firm will be very challenging.

Accountancy practice software can help resolve many common issues faced by practices today; here are just a few:

1. Time-consuming admin: Accounting practice management software can automate repetitive tasks, which reduces the amount of precious time you will need to spend on day-to-day administrative tasks.

2. Inefficient workflow: Using practice management software will help you optimise your workflow by streamlining tasks and automating accounting practice processes, reducing automating accounting practice processes, reducing the chances of errors and increasing efficiency across your practice.

3. Lack of collaboration: Accounting software for accounting practices can boost collaboration by allowing staff to work together on tasks, making you work more efficiently and productively.

4. Difficulty tracking time: By tracking time and expenses for each client and having visibility on all work, accounting practice management software will ensure all your work is accurately accounted for.

5. Poor client communication: Accounting practice software can help improve client communication by providing a centralised platform that will add value to client relationships.

6. Limited room to scale: Using accountancy practice software can help firms scale their operations by automating processes and increasing efficiency, enabling them to handle more clients and expand their services.

7. Lack of visibility into performance: With real-time insights into critical performance indicators, accounting practices can make strategic, data-driven decisions that will lift their overall performance.

Why do you need accounting practice management software?

Since the COVID-19 pandemic, accountants have embraced new ways of working, with hybrid work reducing the hours spent commuting from home to offices to various clients while also allowing them enough time in the office for collaborative purposes and critical face-to-face meetings.

Accounting practice management software, especially those that are cloud-based, has become a critical factor in the success of modern accounting practices, ensuring that you and your staff can complete their tasks as efficiently at home as they are in the office.

Accounting firms that use a reliable all-in-one practice management solution with all the necessary features will make hybrid working much more accessible, flexible, and productive.

Here are a few benefits that accounting practice management software can bring to your practice:

Remote work and mobility

You want to know you will have everything at your fingertips when you sit down at their desk, whether at the office, at home or on the road.

Having all the essential tools and information on a centralised platform will make you more satisfied and efficient in your work.

Bolstering cybersecurity

One of the significant points of contention for those opposed to hybrid work is that it will increase the risk of cyber threats.

Accounting practice management software will help you to mandate that you and your staff only use work devices when working; this reduces cybersecurity risks. Moreover, you will have greater oversight of data use and access when everyone uses the same software.

Improved collaboration and communication

Rather than spreading your operations too thin with multiple pieces of software for different daily tasks, using a dedicated practice management software solution means you have everything available in one application. Moreover, it will make it easier for everyone to come together and collaborate in virtual meetings.

Reliable service delivery

Clients will still want to meet with their accountants occasionally, which is why accounting practice management software can help support the hybrid working model.

With the best of both worlds, accounting practice management software can help you service clients from various locations without compromising on quality or responsiveness.

Attracting and retaining top accounting staff

If you're an accounting firm looking for candidates, you will become an employer of choice once they know you're pro-accounting practice management software. For less time spent scouring the market for the right fit, you must pick the best accounting practice management software, and you'll receive more interest from top talent.

A younger demographic of accountants will expect to be able to perform their task management duties on the go. Best-of-breed accounting practice management software solutions provide a better user experience to keep your staff engaged and productive.  

Key features of good accounting practice management software

Well done if you've decided to upgrade your firm's technological infrastructure with accounting practice management software. Still, you're going to need to put in some research first.

You must pick the best accounting practice management software toyou're help you scale as your firm grows. A small accounting practice will not need an enterprise-level accounting software solution and most likely won't have the means to pay for it.

To make sure you're picking accounting practice management software that hits the mark, you'll need to look for the following key features:

User Interface and Ease of Use

Any accounting practice management software solution must be easy to use and intuitive for accountants and staff. Complicated or confusing technology can negatively impact productivity and practice efficiency.

For this reason, accounting firms should evaluate the user interface and ease of use of potential options. Software for accountants should have a simple and intuitive design that is easy to navigate, with clear and concise instructions that can be quickly understood.

Additionally, accounting practice management software should be customisable to meet the specific needs of your accounting practice, with the ability to add or remove features as required.

Providing that you can connect to the internet, choosing cloud accounting practice management software will enable you to have remote access using any device, enabling you to make swift, informed decisions with your data.

For more information on cloud accounting practice management software and ease of use, please read our page: A guide to cloud accounting practice management software.

Integration with Accounting Tools

Accounting practices often use multiple tools and applications to manage their day-to-day operations, such as time and billing software and client management software for accountants.

To ensure maximum efficiency and productivity, you should select accounting practice management software for accountants that seamlessly integrates with any existing systems. This can help avoid duplication and errors, reduce manual data entry, and streamline workflow.

Data Security and Compliance

Accountants must deal with confidential and sensitive information, so any new accounting practice management software must be secure and comply with relevant regulations and industry standards.

Accounting firms should evaluate potential providers' data security and compliance features, including data encryption, secure data storage, access control, and audit trails. By complying with the industry standards, accountants can minimise the exposure to risks.

Please read our data security guide here: A cybersecurity guide for accounting firms.

Cost

Any technology change can be a significant investment for an accounting practice, so the cost is a critical factor to consider. You should evaluate the benefits and features of the software against the cost to determine if it is a good investment for your practice.

Additionally, it would be best to consider the total cost of ownership of accounting practice management software, including implementation, training, and ongoing support costs. Accounting practices should ensure that they select something cost-effective and provide a high investment return.

Read our guide for more information on this topic: How much does accounting practice software cost?

Reviews and Recommendations

Finally, it would be best if you considered reviews and recommendations from other practices or industry experts on accounting software for accounting practices to help inform the decision-making process.

Online reviews, testimonials, and case studies can provide valuable insight into the effectiveness of the solution and the customer support provided by the software vendor.

Additionally, accounting firms may want to consult with industry experts, such as accounting technology consultants, to help them evaluate and select a platform tailored to their needs.

Conclusion

In conclusion, accounting practice management software is essential to successful accounting practice. It will help you stay on top of client communications, time tracking and billing, task deployment and practice data.

By carefully evaluating accounting practice management software options and selecting the best software for your needs, your accounting firm will save valuable time and money, gain a competitive advantage in the accounting industry and continue to grow and succeed.

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Access Handisoft Cloud is our all-inclusive accounting practice management software that can help growing accounting practices optimise and enhance client engagement. Book a demo today.

For larger firms, we have our fast and powerful APS software used by 3 of the 4 top accounting firms to advance every aspect of their practice. Book a demo today.

Visit our Accountants hub for the latest research, best practices and insights to help your accounting practice management change and grow.

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