The accounting world has gone through some major shifts in recent years. Clients want more from their accountants, services need to move faster, and firms must expand what they offer to stay in the game.
To keep up, studies show over half of accounting firms have turned to technology for better efficiency, productivity, and growth.
One key solution driving this change? Accounting practice management software.
What is Practice Management Software?
Think about all the tasks involved in running your accounting practice: Managing clients, handling billing, tracking time, scheduling appointments, and budgeting — just to name a few.
Practice management software is built to bring all of these tasks together in one place.
For example, with tools like PracticePro 365, you get an overview of everything from client info to billing cycles and project deadlines. This gives you more control and faster response times, helping you run your practice smoothly.
Why is Practice Management Software Needed?
Instead of jumping back and forth from different apps for client management, billing, and time tracking, practice management software puts everything in one centralized location. With everything all in one place, you can worry less about important tasks slipping through the cracks, all while increasing efficiency, visibility, and productivity.
10 Essential Features the Best Accounting Practice Management Software Should Have
Practice management systems make a difference when they can fully replace all of your other administrative software. For the maximum pay-off, choose one that covers both client and internal operations:
Client & External Practice Management
CRM (Customer Relationship Management)
A CRM helps track client interactions and follow-ups, building stronger relationships. If a client asks about their tax return, you can quickly access their details and respond with confidence.
Billing and Collections
Nobody likes chasing payments. Automated billing tools improve cash flow by making invoicing and payment tracking easier. You can send reminders and reduce the hassle of manually managing collections. Most of all, you can send and collect bills faster, meaning you’ll get paid faster.
Tax Workflow
A tax workflow system organizes tasks related to client tax returns. Assign tasks, set deadlines, and monitor progress to help you meet compliance without the last-minute rush.
Scheduling
Easily manage client appointments with integrated scheduling tools. Some software even allows clients to book their own appointments online, cutting down on the back-and-forth emails.
Engagement Letter Automation
Automating engagement letters means less manual work and fewer mistakes. The software can quickly generate and send these letters, saving you valuable time.
Employee & Internal Practice Management
Time Entry
Accurate time tracking helps you monitor team productivity and ensure every billable minute is logged. You can also use this tool to track employee performance and reward the high-achievers.
Budgeting and Forecasting
Get better insights into your finances by analyzing revenue and expenses. If billable hours drop, you can easily adjust your marketing or staffing strategy based on this data.
Project Management
Project management tools help assign tasks, track progress, and collaborate in real time. With this feature, you can make sure deadlines are met and projects are completed on schedule. Even more, you can see what parts of your processes have the greatest returns — and allocate more resources there.
Expense Management
Find software that allows team members to submit and track expenses easily, whether from their desktop or phone. A good system makes expense submission and tracking simple for employees, helping you control costs without adding to the workload.
Dashboards and Analytics
Real-time dashboards give you insights into your firm’s performance. Try to find software like PracticePro 365 where you can customize dashboards to protect privacy and get sharper insights.
How Do You Integrate Practice Management Software?
Switching to accounting practice management software should simplify things, not disrupt them.
Some systems offer self-guided installations with step-by-step instructions. Others, like PracticePro 365, take a more hands-on approach, offering guided integration and training. It typically takes 4-6 weeks to tailor the software to your firm’s needs for a seamless transition.
Are Practice Management Software Secure?
Your firm handles sensitive data, so security is a top priority. When choosing practice management software, look for systems that are:
- Cloud-based: Cloud storage often offers higher levels of security and backup.
- Customizable Dashboards: Everyone in your firm shouldn’t have access to all of your data. Limit data access by setting permissions based on team roles to protect privacy.
Are Practice Management Software Made Only for Accounting Firms?
There are general practice management systems out there. But as fellow accountants, we recommend accounting-specific software. It’s designed to meet the unique needs and speak the language of accounting firms like yours.
Are Accounting Practice Management Software New?
In a 2020 survey, 53% of accounting firms had already adopted cloud-based practice management tools to oversee projects and client communication. This number has likely only grown over the past few years.
We’ve been building PracticePro 365 for over a decade. As the years go by, these tools are becoming more of the ‘new normal,’ and will continue to grow and be a core part of firms’ daily operations and business planning.
What Challenges Do Accounting Practice Management Software Solve?
Scaling Without Overloading
As your firm grows, you want to expand services and increase profits — but this is challenging without increasing overhead costs. In fact, 87% of firms say their clients now expect more flexibility and higher service levels without an increase in rates.
Software like PracticePro 365 is designed to help you scale without sacrificing quality — in fact, the software itself is designed to grow and evolve with you. In the end, freeing up time from routine tasks allows your team to focus more on client service, expand your services, and take on additional work without stretching too thin.
Too Much Data, Not Enough Insights
With all the data accountants handle, it’s easy to feel overwhelmed. Practice management software provides dashboards and reports that help turn raw data into actionable insights.
From here, you can clearly spot opportunities for growth, fill gaps, and allocate resources more effectively.
High Costs of Multiple Systems
Using separate tools for client management, billing, and time tracking can get expensive. A unified system like PracticePro 365 cuts costs by consolidating all of these functions into one.
What are the Benefits of Using Accounting Practice Management Software
Boost Profitability Through Increased Productivity
When your team spends less time on repetitive tasks and more time on meaningful work, productivity soars. Practice management software automates many of the daily processes that bog you down so you can get more done — and earn more revenue.
Maximize Revenue
Faster billing and efficient client management naturally lead to increased revenue opportunities. With more time available, you can explore new avenues for growth without increasing overhead.
Drive Results with Data
Practice management software provides real-time insights that help you identify trends and adjust strategies. For example, if analytics show certain services or teams are underperforming, you can take action to improve them.
What’s the Future of Accounting Practice Management Software
Scalability
As your firm grows, the software should grow with it, adapting to your changing needs. Accountants will lead management software that’s flexible and adapts to their needs.
Interactive Capabilities
Customizable queries and real-time reporting allow you to dig deeper into your data. To stay ahead of the competition, firms will need these features to better uncover insights for business growth and development.
Real-Time, Customized Reports
Cloud is great for centralization, but not everyone on your team should have access to everything. You need to be able to customize reports and dashboards for certain staff and privacy.
What Software Do Accountants Use?
Many accountants rely on a mix of systems for various tasks, which can be inefficient and time-consuming. While this approach can get the job done, it often leads to inefficiencies and missed information.
As accountants ourselves, we understand how exhausting this can be — both in terms of time and budget. That’s why more firms are turning to all-in-one accounting practice management software.
PracticePro 365 is a popular choice among thousands of accounting professionals. It combines all essential tools into one user-friendly platform, making it easier to manage your firm and serve your clients effectively.
Why Choose PracticePro 365?
More accountants are turning to PracticePro 365 for its all-in-one platform, helping firms run more efficiently, earn faster, and grow with ease.
- All-in-One Solution: Everything you need is centralized, saving you time and reducing the hassle of paying for and managing multiple tools.
- Scalable Design: The flexible software grows with your firm, adapting to your evolving needs.
- Trusted by Many: Join thousands of users who have transformed their workflows with our software.
Try Out PracticePro 365: The Leading All-Inclusive Practice Management Software for Accounting Firms
Try it for yourself and see how PracticePro 365 can streamline operations and boost profitability. Request a demo today to see the difference it can make for your practice!