8 Ways to Use Practice Management Software to Scale Your CPA and Accounting Firms
6 Mar 2024

With a thriving accounting business comes complexities that cannot be handled with age-old tools. Rather, these can be overcome with modern software solutions that can further aid you in providing the best tax and accounting services to your clients, scaling your business over time.

However, according to McKinsey data, only 22% of new businesses started in the past 10 years successfully managed to scale. Although this data covers all the businesses, it is also applicable to accounting firms. The mentioned data is critical because not just understanding the methods to scale up the firms is necessary, but efficiently adapting to the new opportunities, such as practice management technology is, crucial too.

With such efficient aid, scaling up the firm becomes easier, which eventually brings better output and revenue over time.

Well, let us dive deeper and understand what this cloud-based software is all about, what are its benefits, and other intricacies in detail!

Practice Management Technology- What Is It?

Practise Management is a tool that helps firms coordinate and manage their day-to-day operations. This software is designed in a way that enables the organization to produce, collaborate, and keep track of previous and upcoming tasks at hand.

In a nutshell, this cloud-based solution takes all your tasks into account and presents them as a whole so that your team can function well together.

There are various ways by which you can use Practice Management Technology and boost your firm’s growth.

Let us look at how it can be done:

1. Workflow Tracking

According to research, it is found that the global workflow management system market will likely grow to USD 44,259.36 Million by the year 2030.Workflow Tracking
Source: https://www.databridgemarketresearch.com/

The possible reasons for rising workflow management software usage may be its exclusive benefits which include day-to-day task tracking, efficient time management, effective client communication, enhanced data security, and elaborate output analytics.

As such, with the proper control over your workflow, you can bring better results to your clients. By using the workflow tracking option, you can invariably standardize your tasks and effectively collaborate in unison.

You can also organize everything efficiently in one place and save time that goes into searching relevant information in the database.

Software: Asana, Trello, Monday.com, Wrike, ClickUp

2. Invoice and Billing Options

You can make use of the software feature, which allows time tracking by which you can effortlessly record the billable hours and bill it to the client. This helps create an atmosphere of transparency and ensures that the firm is getting compensated accurately for its work, thus boosting growth over time.

The software even helps in efficient cash flow management that minimizes hassles and even facilitates regulatory compliance amongst others. Not only this but the critical information related to invoicing and billing gets safeguarded with the aid of data security measures that these tools extend.

Software: QuickBooks Online, Xero, FreshBooks, Wave, Zoho Books

3. Document Management Functionality

According to a report by Mordor Intelligence 2021, the global document management system market is expected to reach $11.47 billion by 2026. Also, it is forecasted that from 2020 to 2026, the system will register a CAGR of 13.05%.

The possible reasons for the rising use of document management software may be due to its exclusive benefits such as improved organizational efficiency, less time wasted on non-billable work, improved collaboration, and better security.

As such, by using the document management feature of the software, you can effectively store and process various important documents of your clients. When all the data gets secured and stored in an organized way, you can use the same as and when required and provide better services to your clients.

Software: Google Workspace (formerly G Suite), Dropbox Business, Microsoft SharePoint, Box, Citrix ShareFile

4. Reporting and Forecasting Feature

Whenever the firm needs any performance analysis, they can use the reporting and forecasting features of the software.

In this, the software aids the organization by generating various reports that can be analysed to make data-driven decisions, leading to business growth.

Software: QuickBooks Online Advanced, Sage Intacct, NetSuite, Fathom, Microsoft Power BI

5. Client Onboarding

With the client onboarding feature, firms can capture a plethora of information in a single place. The software automates the entire process and can even help you gather the data consistently and set reminders if follow-ups are required.

By using this feature effectively, you can efficiently manage your clients and offer tax services to them.

Software: Practice Ignition, Jetpack Workflow, Karbon, Canopy, TaxDome

6. Compliance Management Feature

One of the most important ways to ensure consistent growth of the firm while avoiding legal issues is by being compliant with the dynamic tax laws. According to a report, it is estimated that in the coming 5 years, 91 % of the firms will adopt compliance measures for maximum results.

Here, by using practice management technology, you can easily keep track of various compliance tasks and even set reminders, such as tax filing dates to avoid last-minute haste.

Software: Wolters Kluwer CCH Axcess, Thomson Reuters UltraTax CS, Intuit ProConnect Tax Online, Drake Tax, ATX

7. Staff Performance Evaluation, Training, and Development

One aspect that is crucial to your CPA firm scaling but is always overlooked by most is the employees who make things happen for you. Today, your employee satisfaction, training, development as well as performance evaluation is as important as the need to have a robust client relationship.

By formulating an effective evaluation process that is crafted with investing time and resources, firms can build a workforce that stays engaged and motivated at all times while also extending high performance in the competitive industry landscape.

As such, with the aid of practice management software such as BambooHR, Namely, etc., you can assess your staff members, check their performance, and offer training and development for their growth, enhancing efficiency.

Software: BambooHR, ADP Workforce Now, Zenefits, Namely, PeopleSoft

8. Client Communication, Project Management, CRM

Another way to boost the growth of your firm is by using CRM solutions of the practice management software. Dealing with clients’ money and sensitive information can be a risky and tricky business and an overlook from your side can be disadvantageous to you, greatly tarnishing your reputation.

However, with the help of good software like HubSpot CRM or Clio Manage, you can keep and view all your client’s information in a single place while also securing their passwords for your team. Not only this but you can even automate your client’s data collection which can make your tasks easier and reduce the chances of errors, while improving client communication.

The benefit of using a CRM is visible to such an extent that according to a report, 47% of firms witnessed their customer retention rate increase with the aid of this software solution once they started using CRM, thus adding to their revenue over time.

Software: PracticePanther, Clio Manage, Freshworks CRM, Salesforce, HubSpot CRM

Well, these are some of the ways by which you can effectively use cloud-based software and grow your CPA and accounting firms in a seamless way.

CRM by Self-Reported Benefits
Source: https://www.zippia.com/

Today, the Practice management landscape is greatly evolving with the changes in the accounting industry. As such, fuelled by this technological advancement, firms can now easily work together in collaboration with their team, boosting efficiency and bringing better results by all means.

A comprehensive and innovative approach, this cloud-based software can greatly transform how firms work and can serve as a watershed in the growth of the accounting industry at large.