An integrated solution vs an apps solution: What’s best for your accounting firm?
Have you identified fundamental challenges with your current tax and ledger compliance software, or maybe you have outgrown your current solution? You may not be aware of an all-in-one cloud compliance solution, or if you are, you may want to learn how it stacks up against multiple applications so you can make the right decision about the best approach for your practice.
Introduction
At The Access Group, we work with accounting practices of all sizes across Australia and New Zealand, to help them select the right accounting practice software solutions for their unique needs. We also have an all-in-one cloud compliance solution, which provides consistent compliance workflows for all client work. You’ll enjoy the benefits of integrated CRM, email, tax, ledger and client portal capabilities from anywhere
In our article, we’ll use this expertise to give you a better understanding of an integrated solution vs an apps solution and which option is going to be more beneficial to your accounting practice.
What is all-in-one compliance software for accountants?
When it comes to compliance software, the integrated route offers modules that enable accounting firms to run a consistent approach to compliance jobs.
A powerful all-in-one cloud compliance solution is one of the most important tools that accounting professionals could possibly have under their belt to effectively run their practice.
There are four essential components that should form part of every accounting practice management software:
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Workflow automation: Where accounting practices can track their jobs to completion with automated workflows that will ensure each task is allocated, commenced and completed on time.
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Client management: Ensures accounting practices always have the most up-to-date client activity information for meaningful conversations with their clients and prospects.
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Ledger and Tax: Helping accounting practices create key performance reports with a click of a button for clients. It should also make account preparation, ledger and reporting easy with seamless integrations through to powerful tax preparation and lodgement.
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AI-enabled capabilities: Modern accounting firms need a digital assistant to deliver what you need while you work. AI-powered features can help busy accounting firms to surface key information in seconds, in a secure and safe environment.
You can learn more broadly about accounting practice management software in our handy guide: why do you need accounting practice management software?
What is meant by separate apps for accountants?
The alternative to integrated compliance software, which some accounting firms opt for, is a range of disparate applications that either run separately, or that require a level of systems integration.
This usually involves compliance or practice management software packages, plus separate packages in your tech stack that have additional capabilities, such as general ledger software, tax and compliance software, and a CRM.
Depending on the needs and resources of each individual accounting practice, the disparate route can be effective, but only if this is well-planned.
Accounting firms opting for this approach should pursue a close partnership with a solid systems integration company, and the level of integration that is required has been well-defined and is not excessive for the firm’s needs.
Comparing all-in-one compliance software and separate software applications
In this section, we’ll break down four factors that will help to determine the best approach for your accounting practice. They are:
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Cost effectiveness
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Data and reporting
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User experience
Factor 1: Cost effectiveness
Sometimes the main reason accounting firms will choose separate compliance software packages over an accounting practice management software suite is to save money.
However, most firms find they need some level of integration and so may choose to engage with a third party to make their disparate packages work together.
This can work if managed well. However, it can end up proving relatively costly, as you're attempting to integrate software solutions that may have never been intended to work together in the first place, and this can be difficult to design, test and support.
Conversely, the cost of all-in-one compliance software is widely considered to be more value for money. Practices can reduce time and money spent on manual processes by using compliance to automate workflows, prepare and lodge tax and have visibility over client activities, which results in cost savings.
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All-in-one compliance software |
Task-based separate accounting applications |
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One subscription |
Separate subscriptions for each solution |
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One support and service agreement to maintain |
Individual contracts, support and service agreements |
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Training costs for one platform for you and your team |
Training costs for each solution offering |
We dig deeper into the cost of accounting practice management in the cloud here: Will moving to the cloud save money for my accounting practice?
Factor 2: Data and reporting
With separate practice software, control is at a more functional level, which means that practice data is disjointed. To get a holistic vision of the financial health of the practice, each functional solution would require integration for data flow and visibility. With integration, data is often duplicated, and reports are created manually so time-consuming and not always accurate which leads to a lower level of confidence for decision making.
With all-in-one cloud compliance software, you’ll have comprehensive reporting capabilities, and a dashboard in real-time to ensure you always have full visibility.
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All-in-one compliance software |
Task-based separate accounting applications |
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Centralised data for reporting* |
Siloed data limiting reporting functionality |
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Automation, daily dashboards and alerts to help streamline workflow
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May require manual intervention thus hindering practice workflow |
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Customisation and flexibility |
Limited functionality |
(*) Requires a separate purchase of Zap Data Hub.
Read more about centralised data here: How centralised data can benefit your accounting practice.
Factor 3: User Experience
The user experience (UX) of software has a direct influence on the engagement, productivity, and retention of practice staff, which is why it is becoming more and more crucial that accounting practices have best-in-class compliance software.
A negative user experience for accounting software could be:
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Wasted time: The hassle of navigating complex systems or processes leads to disengagement and reduced productivity. You’ll also have to learn multiple systems, meaning you will be juggling between different UXs daily.
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Reduced accuracy: When using cumbersome or outdated systems, users may make errors or be complacent which leads to additional work and a lack of confidence.
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Lack of flexibility: Inflexible systems or too many systems lead to users becoming frustrated if they don’t feel that they have the freedom to work the way they want.
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Communication breakdowns: If systems or processes make it difficult for users to communicate effectively with each other or their clients, they become less collaborative and less effective as a team.
To address system fatigue and improve user experience, accounting firms need to invest in user-centric systems and processes that are designed with their practice staff in mind.
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All-in-one compliance software |
Task-based separate practice applications |
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Visibility over work in progress and client data |
Lack of visibility |
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A flexible software solution |
Limited flexibility |
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Increases efficiency and accuracy |
Decreases engagement and motivation |
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Streamlines processes |
Contributes to inefficient processes |
Learn how accounting practice software can help modern-day practices to embrace a forward-thinking digital mindset in our comprehensive guide: Digital transformation in accounting.
Conclusion
To summarise, when we compare both approaches side by side, an all-in-one cloud compliance solution is the best choice you can make for your practice.
An all-in-one compliance solution will offer the following benefits when compared to separate task-based applications:
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It is modern software designed with accounting practice users in mind, combining simplicity with intelligence to make work more personalised and fulfilling.
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It offers a scalable architecture, delivering adaptable and flexible solutions to meet ever-changing practice needs.
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It unifies systems and processes allowing accounting practices to gain speed, security, and innovation with less administration.
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It delivers value in the form of user experience, user engagement, streamlined processes, increased productivity, and lower costs.
Given our experience of implementing accounting practice management software in practices of all shapes and sizes we can help assess the situation with you and advise as much as possible.
We’re happy to help you determine the best way forward, even if you decide your path doesn’t include one of our systems, so talk to one of our specialists today and let’s see what is going to work best for your accounting practice.