Guide to Accounting Practice Management Software

IRIS Firm Management: Buyer's Guide

Turning your accounting firm into an outstanding practice that runs as efficiently as the best in the business isn’t as challenging as you might expect. Something as simple as accounting practice management software could get you closer to your goals faster than anticipated. 

These solutions–including those from IRIS–allow you to operate more flexibly and efficiently. The software increases productivity, enhances client services, integrates with your existing tools, and helps you maintain compliance with client data security. You can even use it as a collaborative tool for improved teamwork and to automate workflows that would otherwise be done by hand. 

Understand why accounting practice management software is essential

Download our “Accounting Firm Management Buyer’s Guide” to learn how integrated management solutions can fuel your operations and what to look for in any software you purchase for your firm.

You can also discover more about accounting practice management in our blog below, including the signs your firm needs this software and the benefits it offers you. 

Who is this guide for?

  • Accounting firm owners
  • Certified Public Accountants (CPAs)
  • Senior accountants
  • Team leaders
  • On-site and remote teams.

So, what are you waiting for? Download the “Accounting Firm Management Buyer’s Guide” today!

Signs your firm needs accounting practice management software

So, what are the signs your firm needs accounting practice management software? How can you tell if it is a good investment for your company? 

Challenges writing insightful reports that feed into decision-making

    A clear sign your firm needs accounting practice management software is when generating reports that feed into action is challenging. You may have data silos, but they aren’t helpful if you can’t use them. 

    Accounting practice management software with robust reporting tools changes this dynamic. It can provide the clarity needed to make better decisions at every level of your organization, providing insights into budget expenses, profitability, and even hiring. 

    Difficulty managing client communications and documents

      Another sign you need practice management software for accounting firms is when you find it challenging to meet client communication needs. Many accounting firms relying on traditional workflow arrangements can’t keep track of client emails, calls, and documents, leading to wasted time and frustration. Poorer review scores and a reduction in company reputation ensue. 

      Fortunately, accounting firm practice management software is a central hub or portal for communications, document and client management. Solutions bring features like automated follow-ups and file sharing that save clients time and make it easier to talk to them, regardless of channel. 

      Poor project status and visibility

        You may also need accounting practice management software if you have poor visibility over your project status. An inability to see what is happening in your firm at the top level makes it harder to make decisions that improve your service. 

        Accounting practice management software changes this dynamic by providing an overview dashboard and sometimes generating reports that provide more progress details at the project level. Solutions can provide details of workloads, reduce bottlenecks, and allow you to keep projects on track, helping customers and colleagues alike. 

        Inconsistent invoicing processes

          If your invoicing processes are inconsistent, that could be another sign that software could help you. Manually completing these items is risky and error-prone for most accounting practices. 

          Fortunately, you can turn this around with accounting software. Automated billing and time-tracking solutions reduce missed and delayed payments and ensure clients receive their bills on time. The most advanced software can integrate with existing accounting solutions, allowing them to understand your financial position without manual work. 

          Manual processes are slowing your team 

            Manual processes getting in the way of productivity is another clear sign that you need accounting practice management software. Highly educated accountants shouldn’t spend their days on rote tasks that a computer could perform. 

            For this reason, practice management solutions automate workflows and reduce copying and entering errors. These features save time, allowing your staff to focus on the highest-value work, not basic data entry or calculator-based calculations. Their job is to provide a robust service instead of dedicating all their time to grunt work. 

            Challenges with team collaboration on client projects

              Facing challenges in getting team members to collaborate on client projects is another telltale sign your accounting firm needs practice management software. Delays and mistakes become more likely when accountants can’t work in tandem. 

              Most teams work in so-called “silos,” meaning that they don’t always talk to each other directly. Many use separate spreadsheets, email threads, or even post-it notes for communication. Furthermore, there may not be much cross-talk between departments if they are in different areas. 

              That’s where management software can be so powerful. It provides file-sharing features, tools for real-time collaboration, and up-to-the-minute updates for smoother workflows. Furthermore, these solutions work whether your team is in the office or works remotely, keeping everyone in the loop. 

              Difficulties in keeping track of client deadlines

                Finally, accounting management software could be a potent solution for your firm if you find it hard to keep track of deliverables and deadlines your clients set for you. Tools generate overviews of when to complete work, reducing last-minute rushes (a red flag for most corporate customers). Again, you can issue progress reports and accountant statuses to meet expectations. Clients get portals that let them see how you are doing and how long they might need to wait. 

                Benefits of accounting practice management software

                The benefits of adopting accounting practice management software are substantial. Accounting firms that take the plunge often see tremendous results from their efforts. 

                Real-time insights for better decision-making

                Top of the list of benefits is the ability to generate real-time insights for superior decision-making. With these tools, your accounting firm can see its status immediately without manually leafing through client data. For example, you can see: 

                • Which clients are the most profitable
                • The amount of time you’re spending on specific tasks
                • Reports on budget and actuals
                • Team utilization rates

                Having this information to hand lets you catch inefficiencies and growth opportunities. You can use it to fine-tune processes and adjust your focus to boost your revenue and improve your income. You can also provide a better service to clients who may not be accustomed to such accuracy or speediness. 

                Reduced waste and costs

                Another benefit of practice management solutions is reduced waste and costs. Proper software allows your accounting practice to consolidate tools instead of using different vendors for invoicing, project management, chat, time tracking, etc. Juggling these is expensive and time-consuming, so a single solution harmonizes everything in your business and prevents workflow chaos from breaking out. 

                The benefits of reduced waste and cost are tremendous. For example, you don’t have to train staff on every tool. Instead, you simply provide them with instructions on using the practice management software. Furthermore, you can automate numerous tasks they would otherwise need to perform by hand, further improving your bottom line. Even if you run a smaller firm, you can slash costs and optimize your resources across your team. 

                Better workflow management

                Related to this last benefit, practice management solutions improve organizational workflows. You can track who’s working on what and when you need to deliver results to clients. You can also see how projects are progressing in real time, with direct and timely feedback to clients. 

                For managers, this software can be a lifeline because of its ability to set deadlines and assign tasks. Senior leaders can monitor progress and ensure that specific tasks aren’t left by the wayside. 

                The benefits for firms with hybrid working are also considerable. Centralizing management while providing digital collaboration tools lets staff operate as if they were in the office, even if they aren’t. Staff become more aligned and less prone to feeling cut off from what’s going on back at base. 

                Improved accuracy and error minimization

                Another benefit of practice management software is improved accuracy and error minimization. Solutions cut down on the risk of mistakes that is so common among accounting firms using spreadsheets and pocket calculators.

                The goal of top practice management solutions is to centralize and automate data processing to reduce the risk of errors. Software draws everything together into a single, central point of truth, reducing the likelihood of mistakes and ensuring everyone can access the same information. Then, automated calculations build on the basics for billings and tax filings, enhancing precision and built-in compliance checks that can detect issues before reporting. 

                Accuracy is critical for accounting firms because it builds trust. Companies that are always correct are far less likely to run into trouble with regulators. This approach reduces the risk of fines or reputational damage. 

                Heightened efficiency

                Finally, firms using practice management software can benefit from greater efficiency in traditionally time-consuming tasks like scheduling, updating client records, and managing client data. Solutions reduce admin and can automate documents, like invoices, and send them to clients. They can also make managing workflows easier from a central location, reducing the risk of burnout for staff. 

                So there you have it: why practice management software is essential for modern accounting firms. 

                Learn more about IRIS practice management software

                Our hero products, IRIS Firm Management and Star Practice Management, are designed to make life easier for accounting professionals and CPAs by simplifying the way they run their practices. These tools help streamline daily operations, from organizing tasks to managing client relationships, through workflow automation and advanced document management features. This improves efficiency and boosts productivity, allowing firms to focus more on delivering quality service to clients and less on juggling administrative work.