Our Recommendations for a Seamless and Efficient Workflow
In the dynamic world of accounting, having the right tech stack is paramount for startup firms aiming to streamline their operations, ensure accuracy, and deliver top-notch services to their clients. It is important to pick tools that not only are optimize for a startup firm but that are scalable as you grow. The right combination of tools can significantly enhance productivity, reduce manual errors, and ultimately, contribute to the growth and success of the firm. In this blog post, we explore the essential components of an effective tech stack for startup accounting firms and provide our recommendations for each category.
Some Tips
Before we get started I think it is necessary to make these recommendations:
- Less is better. Tools sprawl in accounting is rampant with AI, automation, and the increasing compliance services accounting firms can end up with 15 different tools before their 3rd I always recommend if there are ways to consolidate tools you will find your firm more efficient.
- Integrate everything. If you have to spend 20 minutes to update a phone number in each of your systems, odds are you may not, and your future staff definitely won’t. Find tools and solutions that can either directly integrate or work with a partner to get your tools integrated.
- Enforce your Rules! If you invest in tools such as customer portals, workflow management, and AI software make sure your employees and clients are using it and make it the only option. Don’t allow for “workarounds” or secondary methods, if you spend the money, get the ROI.
- Purchase for Tomorrow. When you first start out, cost is a factor in every single decision, but you need to consider your future growth. Don’t invest in tools that you know you will outgrow in the short term or settle for something that is below par based solely on cost. It is better to not have a tool than have one that you won’t use or doesn’t fit your need.
- Use Experts! If a software company offers implementation support, use it. Technology is a tremendous asset but only if you know how to use it. Having software that is properly configured from day one will ensure you are reaping all the rewards.
- You are not on an island. Ask industry experts, friends, association members, and even other local firms. Many will share their experiences with specific tools.
Email Provider
An efficient email provider is the cornerstone of any tech stack. Many firms select Google and Gmail out of the gate because it is a familiar interface and they “can always change later”. Switching email platforms isn’t fun with single person firms and only becomes more cumbersome and complicated as you scale. For accounting firms, secure communication is crucial due to the sensitive nature of financial information exchanged with clients.
Our Recommendation: Microsoft 365
Microsoft 365 offers robust security features, including two-factor authentication and encryption, ensuring that all communications remain confidential. Additionally, it integrates seamlessly with other Microsoft services like OneDrive, SharePoint, and Teams, enhancing collaboration and productivity. The user-friendly interface and scalable plans make it an ideal choice for startup firms.
Tax Preparation Software
Preparing and filing taxes is a core service of any accounting firm. The right tax prep software can simplify this complex process, ensuring compliance and accuracy.
Our Recommendation: Lacerte or Drake
Lacerte and Drake are both renowned for their comprehensive tax solutions tailored for various business entities. Their intuitive interfaces, step-by-step guidance, and up-to-date tax codes make it easy for accountants to prepare accurate tax returns. Thompson Reuters and Wolters Kluwer also make great tax preparation products but it is often cost prohibitive when starting up.
Bookkeeping Software
Accurate bookkeeping is essential for maintaining financial health and ensuring that clients’ records are up-to-date. The right software can automate many of the mundane tasks, allowing accountants to focus on more strategic activities.
Our Recommendation: QuickBooks Online
I know it is a boring recommendation but QuickBooks Online (QBO) is still the leader in market share among SMBs. Its cloud-based system allows for real-time updates and access from anywhere, making it highly convenient for remote work. Moreover, its integration with other financial tools enhances its functionality, providing a comprehensive solution for bookkeeping needs.
Client Relationship Management (CRM) Software
Managing client relationships is critical for the growth of any accounting firm. A robust CRM system helps in organizing client information, tracking interactions, and improving client satisfaction.
Our Recommendation: Do your homework
Integrations and cost usually drive the selection of CRM software. When you are starting up you may not even a CRM. If you are a single person firm, keeping track of leads and prospects can sometimes be done in Excel. However, as your firm matures and you want to start leveraging marketing emails, web advertising, and more outbound marketing having a good CRM is a must. Some of the leaders in the market our Karbon, Keap, Canopy, and TaxDome.
Project Management Software
Efficient project management ensures that tasks are completed on time and within budget. The right software can help in planning, executing, and monitoring projects effectively.
Our Recommendation: Find one that works for you
Project Management is another tool you may not need when you start but as soon as you start adding team members it becomes very important. Asana offers a great freemium solution to get started. Firms will often graduate to Clickup, Airtable, Monday.com, Basecamp, or again using Canopy or TaxDome.
Cloud Storage and File Sharing
With the increasing need for remote work and collaboration, having a reliable cloud storage solution is indispensable. It ensures that all documents are easily accessible and securely stored.
Our Recommendation: SharePoint and OneDrive
SharePoint and OneDrive offer a secure and scalable solution for storing and sharing files. Their advanced security features, including encryption and access controls, ensure that sensitive information is protected. Moreover, their synchronization capabilities allow for real-time updates and seamless collaboration.
Customer Portal
Get a customer portal on day one! One of the biggest struggles older firms have is getting clients to utilize the tech stack they have selected and are paying for! A customer portal is an online portal for exchanging documents with your clients. This is a must have for accounting firms because using email to exchange sensitive information is not only not safe but violates compliance rules and regulations.
Our Recommendation: ShareFile
ShareFile is a great and simple customer portal that allows you to have a single place for customers to upload their documents and you can send back all of their reports and completed documents.
Communication Tools
Effective communication is vital for the smooth operation of any accounting firm. The right tools can facilitate both internal and external communications, enhancing teamwork and client interactions.
Our Recommendation: Microsoft Teams
Microsoft Teams is a comprehensive communication tool that offers a range of features such as messaging, file sharing, and video calls. Its channels and direct messaging options make it easy to organize conversations and keep everyone on the same page. Furthermore, its integration with other tools like Microsoft 365, Asana, and SharePoint makes it a valuable addition to the tech stack.
There are other tools such as Slack and others that may be used as a substitution if you are working with offshore help that may only have access to one of these tools.
Time Tracking and Billing Software
Accurate time tracking and billing are essential for ensuring that all billable hours are accounted for and invoiced correctly. The right software can automate this process, saving time and reducing errors.
Our Recommendation: Harvest
Harvest is a user-friendly time tracking and billing software that helps in tracking time spent on various tasks and projects. Its intuitive interface, detailed reporting, and integration with accounting software like QuickBooks make it an excellent choice for startup accounting firms.
You may also to decide to use Karbon, Canopy, or TaxDome as a more fully complete solution.
Cybersecurity Solutions
Protecting your client data is critical to the long term sustainability of your firm. Working with an MSP that has experience working with accounting firms and ensuring they meet all required compliance standards is a must for any new firm.
Our Recommendation: Plus 1 Technology
As an MSP with almost 20 years of accounting industry experience is the go to firm to assist startup accounting firms have the protections they need at a reasonable cost.
WISP (Written Information Security Plan)
Having a completed WISP is a requirement for accounting firms. There are many firms that offer WISP assistance programs. In the beginning you may be able to use a template and complete it yourself, eventually you will probably want to work with a compliance expert. Click here to get more information about a WISP and a free template!
Conclusion
Building the right tech stack is crucial for the success of any startup accounting firm. The tools mentioned above are designed to enhance efficiency, ensure accuracy, and facilitate seamless collaboration. By investing in these technologies, accounting firms can provide better services to their clients, streamline their operations, and set the stage for long-term growth and success.
Selecting the right tools and technology for your accounting practice can be an arduous task but working with a team that has seen it all before can be helpful. If you don’t know where to start, schedule a free consultation today.
