Changing Practice Management Software—making it all worth the pain

By Daniel Harrison on October 7, 2023

Anyone who has acquired an existing firm or decided to move their accounting business to a cloud-based system will be aware of the myriad costs and unexpected delays that occur in transitioning Practice Management (PM) Systems. There are a number of considerations your firm should take into account to get the most effective outcome from such transitions. A consultant with industry knowledge can help tailor the process to your firm’s specific needs, ensuring a smoother transition and quicker realization of productivity benefits.

1. Consider Hiring a Consultant

Why You Should Invest in Expert Guidance

Accountants are typically cost-sensitive, so the idea of paying a third-party additional fees may, on face value, seem an unnecessary cost, especially where you have internal resources that can assist with the task. One challenge is that many implementation consultants in software companies don’t have a background in the accounting industry and may overlook the nuances of moving from one software platform to another. Software companies generally have a best-practice model. However, transitions can vary significantly from one practice to the next, and reporting and processes may not perfectly align. Being prepared for how to deal with these changes in advance can make a significant difference in the smoothness of the transition and when productivity benefits manifest.

2. Go All In for a Successful Transition

The Importance of a Strategic Approach

If you’re making a change, do it thoroughly. Strategically evaluate your firm, its business models and processes and develop a technology stack that makes it more efficient and allows you to easily scale. This is another reason to get professional support from an implementation consultant that understands the accounting industry well. Again, each software company has their own implementation consultants but you want someone who is going to develop an integrated solution that benefits your business.

Avoiding Change Fatigue

A further benefit to taking a holistic approach when looking to update your tech stack, is that if you make an integrated change, your team won’t have to learn new processes that may change again in a few months or a year. The constant training and retraining leads to change fatigue and process confusion resulting in negative impact on staff productivity and utilisation.

3. Assess Long-Term Value, Not Just Immediate Costs

Understanding the True Cost of Transition

When evaluating the cost of new software, don’t just focus on the short-term investment. Consider the long-term savings and potential increase in output. Similarly, while consultant fees may seem high upfront, the benefits of a well-executed transition can quickly outweigh these costs.

4. Customize Your Technology Stack

One Size Doesn’t Fit All

While there are many groups who publish recommended technology stacks for accounting or publish their own for informational and marketing purposes, however this doesn’t replace the need for undertaking your own strategic analysis. The most effective technology solution for your accounting business depends on a number of variables.

This may include the firm’s current service offering, client base, internal workflow process and the way your firm typically engages with their clients are all relevant to undertaking an effective assessment of what is the best solution to allow your firm to grow and scale.

5. Embrace the Imperfect Timing

There’s Never an Ideal Time to Transition

The truth is, there’s no perfect time to make a major software transition. Most implementations take months, and it can take over a year for everything to run smoothly. However, making the commitment and having the right change management in place will yield the best results. Further, making the commitment to approach tech changes holistically rather than in isolation will achieve the best results with minimal disruption to your people, processes and clients.

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