Overview
What Is Accounting Practice Management Software?
Accounting practice management software is a cloud-based tool that helps accounting firms run smoothly on the back-end and front-end to improve efficiency, productivity, team collaboration, and client interaction.
It combines CRM, project & task management, document management, and financial management in an all-in-one tool.
Here's what we'll cover:
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Why every accounting firm needs client management software
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Key features to look for in practice management solutions
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Best accounting practice management software for smaller firms
Let's get started.
Client Management Software for Accountants
Manage your clients with client management software for your accounting practice.
Why Every Accounting Firm Needs Client Management Software
Accounting Practice management software isn't just a necessity if you want to grow your firm.
Firms that don't use practice management software are more likely to:
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Waste time on manual tasks and paperwork
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Lose track of who's doing what and when
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Miss deadlines and leave clients frustrated
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Watch work quality slip as their team grows
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Struggle to make informed decisions about how to improve performance and profitability.
On the other hand, using a good practice management platform empowers you to effectively delegate work to your team, streamline your workflows, track progress and make sure no one drops the ball.
No matter how organized you may be as an individual, you're relying on a team (even if it's still a small one) to uphold your firm's reputation and get the job done well.
As more teams continue to work and collaborate remotely, implementing the right practice management system can be the difference between success and failure.
Key Features In Accounting Practice Software
If you're a small firm, you need to carefully consider your particular needs.
While larger firms may need comprehensive, feature-rich platforms, smaller practices usually benefit from more focused, affordable solutions that address their specific pain points.
Many accounting software options specialize in one or two key areas, such as task management software, accounting workflow software, or time tracking software, which means you'll probably need more than one tool.
Other platforms offer modular solutions that allow you to pick and choose the features you need, but unfortunately, these often end up being quite expensive when you add up all the add-ons.
The ideal solution for smaller firms is one that strikes the right balance between functionality and simplicity. It should provide a range of essential tools without overwhelming users, or breaking the bank.
When evaluating your options, start by listing your key pain points and areas you want to improve, then look for an accounting practice management solution that can kill most of your birds with one stone.
Here are some key features you'll likely want to have on your list:
Ease of Use
If you want to increase efficiency, look for software that offers an intuitive interface and easy navigation, so your team can quickly find what they need and keep the ball rolling.
Cloud-based accounting software is the norm nowadays, but don't forget to check that you and your clients will have anywhere, anytime access.
Workflow Management & Automation
Proper workflow management and project management is key to efficiency and growth.
Your management software should be flexible and customizable enough to help you match or create your optimal workflows, and also help automate repetitive tasks so your team can stay focused on higher-value work.
CRM
CRM should be a key feature of practice management software. This allows you to centralize client data for contact management, and segment clients into groups for personalized service that creates a better client experience.
Client communication is also a big part of this. Why expect clients and team members to hunt through unmanageable inboxes to keep projects on track? It's so much easier to keep everyone on the same page with built-in email, chats and notifications directly tied to workflow.
Client Portal
Having a client portal takes CRM and client interactions to the next level. It provides a dedicated space for sharing information, assigning tasks, and engaging with clients. No more endless email chains or worrying about sensitive data getting into the wrong hands.
Document Management
Stop wasting time hunting for client files and work documents. A good accounting practice management system should include document management features that keep everything organized and easily accessible. Whether you need to store documents directly in the software or connect to your existing document management system, having a single source of truth for all your files is a must.
Customizable Templates
There's no need to reinvent the wheel on every project. Look for software that offers pre-built and customizable workflows and document templates so you can streamline processes, maintain consistency across your firm, and scale your business without sacrificing quality.
Time Tracking and Billing
For firms that rely on billable hours, robust time tracking and billing features are a non-negotiable. But it's not just about ensuring accurate invoices for client work. Advanced solutions offer granular time tracking capabilities that allow you to monitor productivity at the individual, team, and project level.
Software Integrations
To save time and hassle, your firm management software should integrate seamlessly with your existing accounting apps and tools.
Business Analytics
This may not be a necessity for smaller firms. But if you're on the growth track, having software that offers reporting and insights into your firm's performance can be a big plus to help you make data-driven decisions to drive efficiency and profitability.
Value For Money
Of course, the practice management software you choose should make sense as a financial investment. Look for solutions that offer transparent pricing, scalable plans, and a lineup of features that align with your firm's needs and budget.
Best Accounting Practice Management Software
Here are some of the best practice management software solutions for accounting firms:
ClientManager is an all-in-one client management, onboarding and project management software designed for solo practitioners and small to mid-size teams.
It offers a cloud-based, intuitive UX with clean central dashboard and built-in client portal, aiming to simplify and streamline the entire client management process, from managing your lead pipeline to automating invoicing and payments.
ClientManager offers a range of essential features for smaller teams that eliminates the need for multiple tools, making it an efficient and highly cost-effective solution for firms that want a simple way to manage their clients and projects in one place.
Features
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Client Dashboard
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Client Onboarding
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Client Portal
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Customizable templates & form builders (white label software)
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Task management
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Leads Pipeline
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Team Collaboration
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Time Tracking
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Calendar Dashboard
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Schedule Meetings
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Email integration
Pricing (as of May 2024)
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Freelancer: $10/month
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Small Team (2-10 users): $20/month (one price for your entire team)
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Large Team (11-50 users): $49/month (one price for your entire team)
Get 35% to 48% discounts on annual plans. All plans include access to all features.
QuickBooks Online Accountant is a cloud-based practice management platform designed specifically for accounting professionals who manage multiple client accounts using QuickBooks Online. It offers a free, centralized platform for firms to handle client management, document sharing, and basic workflow tasks, all seamlessly integrated with their clients' QuickBooks Online accounts.
One drawback is that you have to use a different platform for time tracking. And it's not a great solution for practice management if your clients don't use Quickbooks Online.
Features
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Client management
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Track clients' income & expenses
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Document management
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Task management
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Invoicing
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Basic reporting & analysis
Pricing (as of May 2024)
Free sign-up for accounting firms. Clients pay subscription fees - sign them up at discounted rates starting at $11.90/month
Xero Practice Manager is a popular cloud-based platform that offers practice management tools aimed at solopreneurs and smaller accounting & bookkeeping practices. It's a good choice for accounting firms that primarily use Xero for their clients' bookkeeping and accounting tasks, providing a unified system for managing clients, invoicing, reporting, and document sharing.
On the downside, it's not suitable for team management. And again, it's only a good solution if you're already using Xero accounting software.
Features
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Billing & Invoicing
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Client Management
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Client Portal
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Document Management
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Due Date Tracking
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Project Management
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Task Management
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Time Tracking
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Customized reports
Pricing (as of May 2024)
Only available as part of the Xero software package, with limited plans starting at $3.75/month with a 6-month discounted subscription.
Karbon is a practice management platform built specifically for accounting, tax and bookkeeping firms with teams of 5+ members. It comes with a robust set of features like collaborative task lists, kanban boards, internal and external messaging, real-time data insights, a built-in AI assistant, and a large library of accounting workflow templates.
A couple of downsides include limits on eSignatures, and the fact that it's priced more for enterprise-level firms.
Features
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Client Management
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Client Portal (desktop only)
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Document Management
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Due Date Tracking
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Project Management
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Task Management
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Time Tracking
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Workflow Management
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Capacity management
Pricing (as of May 2024)
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Team plan: $79/month per team member
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Scale plan – $99/month per team member
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Enterprise – Custom pricing
Discounts on annual plans.
Financial Cents is a solid entry-level, cloud-based accounting practice management tool designed for smaller firms wanting to get started with practice management software. It covers essential features like workflow management, time tracking, billing, and client management and communication.
Features
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Billing & Invoicing
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Client Management
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Client Portal
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Document Management
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Due Date Tracking
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Project Management
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Task Management
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Time Tracking
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Email integration
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Workflow Management
Pricing (as of May 2024)
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Team plan – $49/month per team member
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Scale plan – $69/month per team member
Discounts on Annual Plans.
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Ultimately, the best client management software for your accounting firm will depend on your specific needs, budget, and the software your clients use.
It's important to evaluate each option carefully, take advantage of free trials, and get input from your team before making a decision.
We’d love it if you tried ClientManager free for 7 days.
Users tell us they love the interface, ease of use, and simplicity.
We're also continually updating and adding features our clients are asking for, so if there's something we're missing to make it a good fit for you, let us know!
Here's to your practice management success 😊
Thanks again,
Kyle & CM Team
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