How to choose the best software for your accounting firm?
Perhaps choosing software for your accounting practice will be one of the toughest decisions you will ever make.
Why wouldn't it be?
With over 140+ apps vying to be the best accounting practice management software, it is indeed difficult to choose the right set of tools that not only boost your efficiency but are also fun to use.
How to choose the best software for your firm?
In our 25 years of collective experience in accounting practice management, we have identified that accountants adopt two broad approaches while choosing software: Product-centric approach and Platform-centric approach. Let’s deep dive into understanding these approaches in detail.
What are product-centric firms?
Josiah Wedgwood, the inventor of modern marketing, first introduced the concept of product-centric businesses.
Businesses modeled on a product-centric approach focus on either adopting or developing different products for addressing specific business concerns.
Chat applications for internal messaging, workflow software for collaboration, email clients for internal and external communications, document management systems for storing, managing, and archiving documents, are just some examples of various tools that product-centric businesses use.
While all these products address specific business concerns, one thing that businesses struggle with is that these applications either lack interoperability or fail to integrate with other systems. Because each product addresses a different issue, they often remain as standalone applications and slowly create a silo of their own in the overall business ecosystem.
Challenges associated with a Product centric approach
Often businesses start with one tool for addressing a business problem and later continue to add more tools each time a new business requirement surfaces. As the business grows, managing all these disparate systems becomes arduous.
Multiple channels of communication
Each tool in an accounting firm addresses a separate business need. The biggest drawback of all these tools is that you will have to juggle with a minimum of 3 to 5-tools for getting simple things done.
Let’s say you want to follow up with a client for invoice payment. You will have to send emails, or messages on Skype or WhatsApp, or if the client wants further clarifications on the invoice, you will have to discuss either over a Zoom call or a regular phone call.
So, if you notice you have used 5-tools just for following up on one invoice payment, above all, collating and tracking conversations on each of these tools is a task by itself.
Lack of visibility
Because of the lack of interoperability, these tools often fail to communicate with each other and result in information silos.
A client shares a document on email and later sends some more information on Skype, and if 4 or 5 clients do the same thing, it becomes difficult to collate and share these details with all your colleagues.
Ineffective measurement
Have you ever thought of measuring the effectiveness of your tools?
Which tool or mode of communication works in favor of your business?
Some standalone tools share in-depth analytics, but, because of the lack of interoperability, you will not be able to gain a comprehensive understanding of all the tools or be able to measure their effectiveness.
What are platform centric firms?
In the effort to digitize business processes, many firms continue to adopt new tools for every requirement. These standalone applications result in data silos that are difficult to manage in the long run and limit visibility and accessibility of information across the firm.
The need for eliminating data silos and improving information visibility resulted in firms leaning towards more comprehensive platforms designed on the hub and spoke model of software product management.
In a platform-centric firm, the cloud-based practice management platform becomes the hub of all activities of the business. It connects all the applications used in the firm and stores the data from all sources in their native form.
All departments across the company use the same platform for their day-to-day operations. Because of data centralization, visibility, and accessibility of information also improves.
Advantages of a Platform-centric approach
One hub of all activity
In platform centric firms, a cloud practice management platform becomes a hub of all their activity. All day-to-day operations such as task and project management, emails, calls, messages, document storage and sharing, meetings, and interactions with clients take place on the platform.
Better communication and collaboration
The practice management platform stores all the information generated in the firm making information more visible and accessible across the business. In short, the information used by all teams in an organization will be the same.
The practice management platform makes the experience fun and seamless for your clients too. Each client gets a dedicated client portal through which they can easily upload all the required documents and even interact with your team members, making collaboration a breeze in your firm.
360° view of business
The cloud practice management platforms store data at a centralized location creating a single source of truth for your business.The centralized information allows you to create customized dashboards that share valuable insights into your business.
Having a 360° view of your business also allows you to identify anomalies in the early stages and take timely corrective actions.
Ease of Use
Juggling through multiple applications even for completing simple tasks is not something that you would look forward to, especially while chasing strict deadlines.
Most practice management platforms offer task and workflow automation that make executing tasks easy and fun. The platform makes all the tools required for performing a task accessible, which means you will not even have to change the window for getting things done.
Integrations
Introducing a cloud practice management platform does not mean that you will have to let your existing accounting tools go.
Most platforms offer advanced integrations so that you can retain your existing tools while experiencing the benefits of a more robust platform. Which means you get the best of both the worlds at the same time.
What is the right approach for your firm?
The choice of an ideal software for your firm begins with defining the word - best.
The best fit software is one that understands the unique requirements of your business and adapts itself accordingly.
Factors to consider while choosing the ideal software
Nature of business
The discussion around the right software for your business must begin with a thorough analysis of your business and its specific needs.
As a first step, start with evaluating your business goals.
What are your services? Who are your target customers?
What are your challenges? What actions are you taking to overcome these challenges?
Are your efforts aligned with your business goals?
Does your existing software complement your efforts in achieving your goals and objectives?
What additional skills do you need to achieve your goals?
By when do you intend to achieve your goals?
Answering these questions will help you to gain a better understanding of your business requirements and eventually help you to choose the right software easily.
Cost
The software can be an expensive investment, but if you consider the long-term benefits that the product brings to your business and the additional benefits that you can reap, you quickly realize that the software pays for itself.
Because you are on the verge of a long-term commitment, you must choose brands that offer transparent and no-fringe pricing models.
Flexibility
Pricing is a concern when you are just starting your business. However, if the product does not offer personalized services or lacks the flexibility to adjust to the growing needs of your firm, then it fails to serve the purpose.
Investing in solutions that offer flexibility to work, both in and out of office, helps in the long run.
Predictable
Being able to deliver consistent results is one of the most important factors to consider while zeroing down on software for your business. The software must not limit your capabilities but must compliment your efforts for achieving efficiency and productivity.
Ease of Learning
Many software products prioritize utility over usability and ease of learning. Utility refers to the ability of a software product to perform all the tasks that it has been designed for. Usability on the other hand, refers to the ease with which you can learn and use the software.
If users take too much time for learning the product or if the interface is not intuitive enough for them to work independently then the very purpose of a software gets defeated.
Security
Storing all the information of your business comes with its own security challenges. Your software must secure and safeguard your information and give you the much deserved peace of mind.
Final Thoughts
The choice of an ideal software for your business is not an easy decision. However, we hope this post gave you enough insights on the factors that you must consider before investing in the right software.
Have you considered investing in new software for your business? If yes, how did you decide on the ideal tool. Let us know in the comments, we are curious to learn more about your rationale behind the choice.