Why Practice Management isn't Just for Big Accounting Firms

If you’ve been researching software for your accounting firm for any period of time, you’ve likely come across the term “practice management”. On the surface, it may seem that this software is geared more toward larger firms with a greater need for organization and structure.

The reality, however, is that even small or medium-sized accounting practices stand to gain a lot from implementing a practice management solution. An evolving industry, higher levels of competition, and more discerning clientele mean that now more than ever, Canadian accountants need to focus on continuing to provide a high level of service without the interruption of administrative tasks that detract from the client experience.

What is Practice Management Software?

Practice management software is designed to help accounting firms manage their day-to-day operations more effectively through features such as client management, work tracking, and reporting.

Using practice management software enables accounting firms to increase efficiency, improve client satisfaction, and reduce time spent on low-value tasks like following up with customers or tracking down documents. This in turn leads to a more profitable firm that’s focused on providing value to clients without the busywork.

Benefits of Practice Management for Small Canadian Accounting Firms

There are many resources available when it comes to training your team or yourself on practice management best practices. As for the software side of things, let’s take a look at some specific ways in which practice management tools could be especially useful to you and your firm.

Improved Efficiency

Taking a proactive approach to the management of your practice means tackling efficiency from both sides: not only can you increase the output of your firm by being able to handle more clients, but you can do so without increasing (or in some cases, even reducing) the overhead and resources required.

By implementing effective practice management strategies, small Canadian accounting firms can streamline their processes, eliminate bottlenecks, and vastly reduce the chance of errors in their workflows. Some examples of tasks that are ripe for automation include sending email reminders, gathering tax information from clients, and digging up older documents.

Increased Client Satisfaction

All businesses live and die by the customer experience they offer, and accounting firms are no exception. Many people decide to shop around for a new accountant only if the relationship with their current one has soured, meaning keeping clients happy typically leads to better retention and years of recurring business. Happy clients also tend to refer business your way and are one of the best sources of free marketing.

Practice management tools help firms manage their clients more effectively, which builds trust and confidence in your firm's services. For example, a portal enables clients to access their financial documents, communicate with their accountant, and track the progress of their engagements. This leads to more transparency, better communication, and ultimately, a greater level of client satisfaction.

Better Firm Insights

Practice management software allows for a bird’s-eye view of all aspects of your firm's operations. If you’ve ever lost sleep wondering whether or not any of your firm’s work is about to slip through the cracks and miss a deadline, then you can appreciate the better planning and resource allocation that the software allows for.

A good software suite will provide a centralized dashboard for you to review all of your firm’s work at a glance, including upcoming deadlines and which stage of the process each engagement is in. That way, you have peace of mind knowing that everything is getting done, and you can plan your workload accordingly.

Your Next Steps

Practice management can help accounting firms of all sizes in Canada benefit from implementing a variety of strategies that improve efficiency, increase client satisfaction, and reduce administrative tasks. By taking a more structured approach to their work, small firms can punch well above their weight and compete with firms much larger than them, all while continuing to provide a stellar, personalized client experience.

If you’re looking to find out more, then you’re in the right place. Taxana is practice management & client portal software for small Canadian tax accounting practices. Feel free to get in touch and find out how our platform can help your firm manage your clients & workflows more efficiently so you can take back control of your calendar.