Add on puzzle pieces
When it comes to choosing add-ons for your accounting platform – whether it be for the backend systems in your practice, the horizontal applications you use practice-wide or the verticals you service – the amount of choice out there can seem overwhelming.
In Xero’s App Marketplace alone, there are more than 500 add-ons available. Considering the investment a technological choice like this requires, both timewise and financially, it’s not one you should take lightly.
Before diving in, take time to consider your requirements by looking at the inefficiencies in your firm and what would make either your business or your clients’ business work more effectively. Then, by prioritizing these requirements, you can address the inefficiencies in order of importance – making the selection process a lot more manageable.
Here’s how you can approach the process on a case-by-case basis:
In Your Firm
When you’re taking a look at the efficiencies in your backend systems, look at the tools that help you process client work. A lot of accounting professionals really don’t take time to understand how their backend works, but it’s crucial to get it running efficiently to keep up with industry practices like value billing.
For example, practice management tools can help with this efficiency. That way, it’s just a matter of the work coming in and staff checking it out. They can do so knowing they have all the documents they need and when it’s due. You’ll also have that visibility knowing who is working on what.
My advice is to treat your firm like you would your clients. If you were going to meet with a new client, you'd go in and talk to every employee to understand their workflow and figure out what they could be doing more efficiently.
Look at where there is duplication of work or someone has created their own process for certain tasks. Undertake an audit of your firm’s processes before selecting technology – figure out the big things you want to hit to make it more efficient. Don’t change everything over all at once. Do one thing at a time and have it mapped out – get bedded down there and take on the next piece you’re going to automate.
Look at the activities that you can’t bill for and what takes the most time during your staff’s day. Decipher where the bottleneck is in the firm and attack that one first.
Horizontal applications
When choosing practice-wide tools, start by defining the horizontal services you offer across your clients – whether that's bookkeeping services requiring faster data entry or controllership services needing financial reporting or budgeting tools. Ask other accounting professionals for recommendations so you can see how they're using the tools and how it’s working for them and their clients.
Once you’re nearing a decision, take a client you’re already working with and test the solution with them. Find out what works and what doesn’t for them. Try before you buy where possible.
Industry
When it comes to the niche or niches you service, this is where tools get more specific. Start by identifying the biggest pain points that you need to solve. This will help you identify the tools and, as a bonus, make you marketable as a package to that industry.
The Xero App Marketplace can be filtered by industry, and there you’ll be able to see reviews from both people like your clients and accountants and bookkeepers. This will give you both perspectives. Have a look at social media groups used by accounting professionals if you want to ask questions and get an idea of how to build out the solutions.
Take into account the particulars of the industry that will make a certain tool work for your clients. Looking at a solution for attorneys for example – time and billing needs to be really easy and have the capability to track trust accounts. Creatives want a user interface that is really attractive and has ease of use. Understand what matters to each industry group so you find a software that fits their needs.
By taking a holistic approach to selecting add-ons for both your firm and your clients, completing an analysis of the needs there and slowly implementing the technology one at a time you can choose tools that are a best fit.
Amy Vetter, Global Vice President, Education & Head of Accounting, U.S. at Xero