How accountants can maximise their software investments

Software is an essential part of the modern accounting practice’s toolkit. It makes sense, too. Accounting software can help you simplify complex processes, speed up tasks, comply with regulation, and achieve more with fewer resources.

When you adopt new software, though, you need to be clear on practice goals, clients needs, and regulatory requirements, while weighing up which features will add the most value for you.

In this guide, we show you how to choose and use software to its full capacity. Learn how to approach software selection strategically and maximise your return on investment.

How to choose the right software for your accounting practice

You need more than just a shopping list of features to choose the right software for your practice. What are your practice goals for the coming months and years? Do you want to onboard more clients or increase the efficiency of your existing workflows? Usability, compliance, and plans for growth are all factors you should consider, too.

Here are some other areas to focus on when choosing software.

Learn what your clients need

Whether your clients leave all of their bookkeeping and accounting to you, or do some of it themselves, they’ll have to use accounting software every now and then. So, finding a user-friendly, reliable option with features your clients value is crucial.

Think about where your clients have touchpoints with your processes now, and consider how software might impact them. For example, instead of emailing receipts to you, could they upload photos from their smartphone, instead? And, instead of signing physical documents, could digital signatures make reviewing working papers easier?

Also, question which services your clients value most, and whether the software complements this. For example, clients working on improving their cash flow might appreciate detailed analytics and a live view of their financial data for informed decision-making. Software with reporting and forecasting features will help you meet these client requirements, and give them more reason to engage you for support.

Not all of your clients will value the same things, so prioritise software that’s flexible and customisable. Look for providers who offer plenty of inbuilt features alongside third-party apps you can add for more functionality. This will enable you to solve for multiple client types and industries.

You can find this customisation and scalability on Xero accounting software. We offer a full suite of inbuilt features for payroll, tax filing, and forecasting. But, you can go even further by choosing from our library of third-party apps, with tools for proposals, payments, and approvals – to name a few. Add apps as and when you need them, so you can scale up or down whenever you want.

Evaluate software features and integration capabilities

The right software reduces your workload and simplifies tasks – it shouldn’t complicate things further.

Look for features like automation, reporting, and third-party integrations. These will save you time, ensure accuracy, and enable you to scale:

• Automation: Automating repetitive admin tasks means the software can take care of them for you, and you can use the time elsewhere. Importing bank transactions, following up on invoices, and recommending matches for statement lines can all be done by software, without the risk of human error. Xero’s Hubdoc integration is an example of how automation can save you time. Hubdoc automates data capture from bills and receipts. Your clients just need to snap a photo, and Hubdoc extracts the transaction information and imports it to Xero.
• Reporting: Reporting and forecasting features enable you to track improvements, spot future obstacles, and make data-backed decisions. For your clients, the ability to glimpse what’s up ahead could be the difference between maintaining healthy cash flow or facing a gap. Reports and forecasts in Xero accounting software, for example, use real-time data to give you and your clients reliable insights. Your clients can use live data to make informed decisions, instead of relying on past numbers.
• Third-party integrations: Integrating apps with your accounting software lets you manage your entire software package in one place. Your data flows seamlessly between your integrated apps and core accounting software. Take an app like Dext, for example, which gives you one clear view of receipts, invoices, and other financial documents. If you integrate with software, like Xero, you can see all of those financial documents directly in your accounting system. The Xero App Store is home to a library of tools that can be integrated with our core accounting software. Add tools for specific industries – such as construction, retail, and hospitality. Or, find tools for functions like HR, project management, and payments.

How to maximise ROI from your software investments

Choosing the right software is one thing. Making sure your team and clients can get the most value from your software is another.

Software covering multiple business areas – like practice management, accounts and tax preparation, and bookkeeping – can help cut down on subscriptions and simplify complex workflows. But, how else can you get more from your software? Let’s explore.

Fully utilise key software features

Adopting software but only using one or two features won’t make your practice more efficient. It might sound obvious, but when you’re busy, it’s easy to fall back on old processes instead of using new software features. The more of the software you use, the better the return on investment.

Modern software has plenty of time-saving features available, including automation, analytics, and collaboration tools. When you speed up, automate, and simplify tasks with software, you create space in your practice for other things. This could mean more time with clients, healthier working schedules, and better profit margins.

Certain features also create opportunities to provide additional services. For example, having access to real-time reporting and forecasts could enable you to offer specialised advisory services, and support clients with business strategy. And, as your confidence grows with software and integrated tools, you could offer app advisory as another service.

Automate and optimise client workflows

Repetitive tasks get in the way of high-value work. If you’re bogged down in bookkeeping admin or chasing up unpaid invoices for clients, reaching out to clients to offer strategic advisory services can easily become a low priority.

Using software to automate regular admin tasks – like invoicing, payroll, and bank reconciliations – can earn you time back. Automating processes like bank reconciliation and invoicing frees up time for your team to upskill, provide high-value services, or onboard new clients.

Traditionally, adding more clients to your books would require hiring more staff. But, when processes are automated, they can work for 10 clients or 1000 clients. Automated processes are scalable no matter how many clients you work with.

With Xero accounting software, you also get access to the App Store, where plenty of integrations let you automate and optimise your processes. For example, Stripe lets you collect card and smartphone payments, and set up recurring payments for repeat customers so fees are collected automatically. This can help offer your clients a consistent cash flow, and take the pressure off chasing invoices.

Xero’s own payroll software offers plenty of options for streamlining processes and ensuring accuracy. Xero payroll software automates calculations for payments and deductions, so no more complex calculations for clients. Tax information is automatically updated in Xero for the new tax year if required, such as increasing tax codes and carrying over authorised tax codes for review.

When you’re free from tedious tasks, you can spend more time advising clients, upskilling, and delivering high-value services that make the best of your skills.

Train your team to adopt the software

It’s down to you and your team to make the most of software, which means you might need to brush up on your digital skills.

Training your team and clients on software means you can all get the best out of the features available. This training can take various forms – webinars, drop-in sessions, appointing a software champion, or using the software provider’s training resources.

Follow up with your staff to make sure everyone is getting the best out of software. Modern software providers have an activity log where you can track which features have been used. Here, you can see how your team is using software and whether they’re making full use of the features.

Software providers want you to get the best out of their product and often have a bank of learning resources and content to help you. For instance, Xero accounting software has plenty of learning resources, such as training courses, webinars, and events for you to upskill with. You can also access migration support from our team, who are there to make your transition smooth and easy.

How to evaluate and adapt your software strategy

Software needs will always change. Whether regulation demands new functionality, or clients ask for new services. Regularly reviewing your software strategy and adapting it to fit these needs helps you stay competitive and deliver focused services. The right software will be scalable and adaptable to you.

Make sure you do your research on accounting software that’s built for your needs. And, spend some time on the following tasks.

Schedule regular performance reviews

Just as you schedule performance reviews for staff, you should also evaluate software – it’s now a key player in your team.

Check that you have all the software features you need for current and future needs. Modern providers regularly update their software with features, so if you’re not taking the time to review them, you could miss out on new tools that pop up overnight. Setting up a regular slot for software experimentation will help you continue to find efficiencies.

Xero accounting software is regularly updated in line with regulations, such as MTD for VAT and Basis Period Reform. We also make updates based on small business and practice requirements, so Xero works for you now and in the future.

Leverage vendor support and new software features

Modern software providers have plenty of resources to help you make software work harder for your practice. They want you to succeed – so make sure you explore what’s available to you. Reach out to your software provider for extra support, or spend some time exploring the help centres and community forums.

Xero users have access to a help centre, training, webinars, a community forum, and all kinds of ongoing support in various formats. Plus, many of our integrated app providers offer tool-specific training – so you can find your niche and offer specialised services.

Xero software helps you create space in your practice with features and integrations that save you and your clients time, and provide a clearer financial picture. Whether you use that space to onboard new clients, upskill, or scale back and take some time off, is up to you.