Understanding which components your firm needs can help you build a custom tech stack for the present and future that puts you one step ahead of the competition. You'll build a solid foundation to help you optimise and scale with the right tech stack for your accounting firm.
In this article, we'll explore accounting firm tech stack options available and how to avoid common pitfalls.
What is an accounting tech stack?
A technology stack, often called a 'tech stack' for accounting firms, is a comprehensive set of accounting software, hardware, tools and systems specifically designed to optimise accounting activities for busy firms.
An accounting firm's tech stack encompasses various aspects of modern-day accounting practices, including accounting practice management software, general ledger software, time and billing software, client relationship management, tax preparation software, and data management and analytics.
By leveraging technology, accounting professionals can streamline their workflows, reduce manual tasks, minimise errors, ensure compliance, and increase productivity, enabling them to focus on providing higher-quality accounting services to their clients.
The importance of an accounting tech stack
Simplifying your accounting tech stack means taking a crucial step in your continued success as an accounting firm, which cannot be sustained by Excel spreadsheets or legacy software for accountants.
Creating a powerful accounting firm tech stack is a strategic investment that can power up your team to move forward with greater confidence and a boost in how productive they can be each and every day.
A well-defined tech stack for an accounting firm can increase your profitability, as you'll be implementing accounting software to help you exceed your client's needs.
The benefits of an accounting tech stack
A tech stack for an accounting firm is crucial in the following ways:
Enhanced efficiency and productivity
Automating repetitive tasks by upgrading your accounting software and other tools helps you to move away from manual methods that may be hindering rather than allowing your firm.
According to our Your Future Practice report on the current state of practice management in Australian accounting practices, 51% of practices indicated that workflow management is an area currently needing improvement.
Results from accounting practices who implemented accounting practice management software as part of their tech stack said that greater workflow productivity was the most significant impact they received. It is reasonable for us to deduce that a well-considered accounting tech stack can improve your internal productivity.
With streamlined workflows, reducing manual data entry and the risk of human error, and speedier processes, accountants with the best accounting firm tech stack in place are free to focus on higher-value activities for their firm, such as advisory services.
A better client experience
Client portals through client relationship management software facilitate seamless communication and document sharing between accountants and clients. 32% of accounting practices tell us that they have improved client experiences through upgrades to their accounting firm's tech stack.
Through your accounting firm's tech stack, you'll experience more efficient processes, timely reporting, and collaboration, vicariously contributing to a positive client experience. Clients appreciate the transparency and accessibility that a modern accounting tech stack can provide.
For more tips to increase client experience, read our article: mastering client relationships for accounting practices.
Data security
Accounting firms handle sensitive financial information, so it is essential to invest in secure cloud-based accounting practice software that prioritises security and protects your financial data from data breaches and unauthorised access.
Accounting practice software with robust security measures can also build client trust and meet compliance requirements.
Read our guide to cybersecurity in accounting firms.
Building remote work capabilities
Cloud-based accounting practice software is proven to be easier to train new staff on workflows and reduce anxiety and stress, which is a significant indicator that an accounting firm tech stack can better equip remote working, with accountants able to access financial data and collaborate with clients from anywhere.
An accounting firm tech stack that enhances your remote capabilities will give you greater flexibility, which is crucial during unforeseen events, as we have seen in the past few years through the COVID-19 pandemic.
More information on the benefits of remote work for the modern accounting firm can be found in our article: flexible work arrangements for accounting practices.
Supporting decision making
Core accounting software with business intelligence capabilities is worth its weight in gold for valuable insights into how business clients perform financially.
Data visualisation tools, for example, help accountants and clients understand complex financial data in a more accessible manner. These tools aid strategic decision-making when forming part of your accounting firm's tech stack.
Saving time and costs
Software for accountants that uses automation reduces the time accountants spend on manual tasks, leading to cost savings for the accounting firm.
Practical time management skills go hand in hand with profitable accounting practices. Integrating different tools in the ideal tech stack for your accounting firm will eliminate the need for duplicate data entry and reduce the risk of human error.
Read our time-saving tips for busy accountants.
Adaptability to business changes
A well-designed tech stack allows for scalability as the accounting firm grows. The tools you should include within your accounting firm tech stack should adapt to changing business needs without significant disruptions.
Additionally, regularly updating and optimising your accounting firm's tech stack allows the accounting firm to leverage the latest technological advancements, allowing for continuous improvement. Staying current with technology trends ensures the firm remains competitive and adaptable to any changes within your firm.
Key considerations in developing your accounting firm's tech stack
A clear purpose and aim are critical before constructing your ultimate accounting firm tech stack to avoid wasting time or resources on pointless components or solutions. The following are some typical elements you should think about for a modern accounting firm tech stack:
How will new technology interact with technology already in use?
You may already use an accounting practice management system or CRM platform and want to continue using it. Before investing in a new platform, finding out how it can integrate with your existing tools is important.
How does the platform keep information secure?
The last thing you want is a data breach at your firm. Ensure all client data, documents, and sensitive information are secure within all platforms you use and adapt. Understand how the system keeps information safe and train employees regularly on data security best practices.
What are other accounting professionals using?
Remember to leverage reviews during your software search. Find out what other professionals in the accounting industry are using, their challenges, and what solutions best fit their needs and why. When doing so, make sure you focus on reviews from firms that are like yours in terms of size for the best results.
This is not an exhaustive list, and there are many other considerations, such as whether you'll want to integrate.
Your modern firm stack components should work together through native integrations or third-party platforms. The term "all-in-one" refers to technology that can handle many business needs in the accounting sector, such as practice management, client management, compliance, and time and billing.
Essential tools to include in your accounting tech stack
Accounting technology has evolved significantly in recent years, especially with the introduction of AI, machine learning and more sophisticated data analytics.
As a result, adopting a reliable and robust technology stack has become essential for accounting firms to remain competitive and deliver top-quality accounting services to their clients.
Here are some of the critical tools that accountants like you rely on:
- Accounting practice management software, which should contain the following core components
- Time and billing software: helping you work more efficiently with greater focus on your staff, jobs and time management.
- Workflow management software: saving your accounting practice valuable time in managing jobs, streamlining processes, hitting deadlines and reaching your goals.
- Reporting and insights: giving modern firms complete visibility of how their accounting practice is performing.
- Client relationship management software: allowing you to access all your client information from one centralised location, enabling you to connect with your clients on a level you've never experienced before.
- General ledger accounting software: where practices can create professional, practice-branded financial and management reports for staff and clients.
- Tax preparation software: enabling large and small firms to prepare, manage and lodge tax returns for their clients.
- Data management and analytics software: which helps practices make critical data-driven decisions due to the wealth of empowering data and insights.
In summary
Building the right tech stack for your accounting firm may be trial and error, and it will involve you asking serious questions, such as how to connect disparate systems to work together and streamline your accounting workflow from start to finish.
However, if you investigate your options thoroughly, the effort will be worth it. As we have learned in this article, an accounting tech stack can improve operations, efficiency, and effectiveness throughout the journey.
The Access Group provides smart and scalable solutions that can form a powerful accounting firm tech stack. Our accounting practice management software can set firms of all sizes up for success.
Talk to a specialist about building an accounting firm tech stack with our best-in-class accounting practice management software.
Access Accountants is core accounting practice management software, the right technology for a small firm tech stack. Book a demo today.
Our fast and powerful APS software helps larger firms build their accounting firm tech stack. Book a demo today.