In this podcast episode, Chad Chang, CPA, CMA, co-founder and advisor at Purpose CPA, shares best practices and tips that CPAs can use to effectively select, integrate, and use accounting tech with Leah Giesbrecht, a communications specialist at CPABC. Part of our Coffee Chats with CPABC podcast series.
Take your accounting practice to the next level with the right technology. Learn more about evaluating and implementing tech at Chad’s seminars, Elevate Your Practice: Exploring The Latest Practice Management Apps (Nov. 6) from our Thriving in Public Practice Series and Building a Strong Accounting Tech Stack (Dec. 5) at PD Nexus: Business and Innovation Insights.
When CPAs choose the right technology for their accounting practice, it enables efficiency and competitiveness and optimizes overall business performance. But with so many options available, choosing a suite of software that meets your needs, works well together, and has staying power is a challenge. Our business, Purpose CPA, has always been digital first and this has enabled us to successfully deliver our services and continue to grow. To share some of what we’ve learned along the way, here are some best practices and tips that CPAs can use to effectively select, integrate, and use accounting tech.
Choosing accounting software that meets your needs
When choosing software, it’s helpful to start with an overall process in mind:
-
Review and map out the different lines of your business lines and their workflows, such as tax services and any management or technology advisory services that you offer.
-
Evaluate the software you’re considering, to determine how well it will adapt to your workflow or how much you will have to adapt to the software. Most practice management software offers some customizability in their fields and templates, but aside from that, they're typically set in their own specific workflows.
-
Speak with your software vendor, go through a demo with them, and ask questions.
-
Set up a trial account and allocate time to sit down with your team to evaluate the software.
Since the technology ecosystem is always changing, it’s also helpful to talk to other practitioners and join business and accounting groups on Facebook and LinkedIn to keep updated on the tools and apps that other CPAs are using.
Minimize risk by prioritizing simplicity
The software you choose should work well together now and in the future. My guiding philosophy is based on simplicity - I want to minimize the number of software tools in our workflow. Adding applications just because they integrate can be risky, as they might not integrate in the future. If you have different companies handling different functions - for example, one for accounting and another for payroll - these companies have different goals and if one decides to go a different way or shutters their business, you’ll be scrambling to find new software that fits your system.
Build your foundation with the major players
One way to mitigate the above risk is to build the foundation of your business with the largest players in the software community, for example, Google Workspace and Office 365. These major ecosystems assist with the common and core services needed to run a business. After that, look at potential systems that can play well with these major systems. Large players will have good relationships with certain add-ons and applications. They will have developed solid and long-standing integrations as well as fixed various bugs. If you choose an add-on application within their ecosystem, you can trust that these systems will continue to function well together in the future.
Integration tips
When it comes to integration, look for systems that have built-in or native integration because they will have been designed to work together and will have a direct means of integrating with one another. A custom integrator is also an option, but it can be expensive. For a developer to look at your workflow and what you’re trying to integrate, and then design a simple customized connector could cost you $5,000 to $10,000. Zapier is another option. It’s a paid app service that connects different apps, allowing them to communicate and perform actions. While Zapier is affordable and useful, it has limitations. Your apps may have many features, but Zapier might only support a few actions between the different applications.
Security best practices
With major data breaches regularly in the news, security is a core consideration when you’re evaluating software. Look for compliance with SOC 2, a security framework with globally recognized standards, as well as for apps that have two-factor or multi-factor authentication.
A password policy for your business is also important. For example, you could set a policy that requires passwords to be at least 14 characters long with a mix of uppercase, lowercase, numbers, and symbols, and set a requirement that passwords must be changed every 90 days. You can also consider using password managers like Bitwarden or Bitdefender.
Finally, it’s essential to train employees on best practices during onboarding and on an ongoing basis. One data security specialist I spoke with said that when it comes to security best practices, more than 50% of an organization’s focus should be staff and their behaviors.
Apps to enhance productivity for solo or mid-sized practitioners
Small and mid-sized practitioners need to stay organized and productive to remain competitive and there are several apps that can help. For keeping track of staff work - including tasks assigned, date assigned, progress made - my practice finds Asana helpful. This customizable project management tool can manage accounting work, as well as marketing, insurance renewals, key document reviews, and other tasks.
Looking specifically at accounting practice management apps, practitioners might want to check out Karbon, which manages everything from client communications, to task assignment, to tracking work progress, as well as tracking client time and billing. It also contains a file management system. Carbon fits with my philosophy of keeping your apps simplified and choosing technology that will bundle all the major functions in your business. Another app that I’m considering using is TPS Software, which centralizes client data and streamlines communications. It has numerous features, contains 300-plus reporting options, and provides integrations for some payment applications with Outlook or with Google, and offers DocuSign or Adobe Sign. Other options include Financial Cents and Zoho Practice.
With all of the options out there, hopefully the tips and recommendations above will help members choose technology that supports and benefits their accounting practice.
Chad Chang, CPA, CMA, is a co-founder and advisor at Purpose CPA. He has 25 years in the trenches of sales, marketing, HR, accounting, and tech. You can find more of his insight on choosing the right technology on Purpose CPA’s blog.
Please note that CPABC does not endorse any of the services or products mentioned in this article. It is the reader’s responsibility to research and review the services and products independently.
