Save content
Have you found this content useful? Use the button above to save it to your profile.
Strategising
istock_PeopleImages

Find the right technology: Narrowing your options

by
10th Feb 2017
Save content
Have you found this content useful? Use the button above to save it to your profile.

Cloud adoption and rapid advancements in technology have led to huge increase in the tools and systems at the disposal of accountants.

This has simplified and advanced many of your processes, but for all the opportunity this has brought, it's also created a new set of complications. It's not easy for accountants to navigate the vast sea of applications on offer due to their limited available time, lack of knowledge of what systems exist, and an uncertainty of where to begin.

These steps will assist you in narrowing the field of apps that are critical to your firm. In an upcoming follow-up article, I'll outline how to ultimately pick the best solution from your shortlist that will best solve the problem you have or processes you perform.

Assess your internal processes

Technology is only as good as the processes it stands on. As a first step, look at your firm's processes that cause the biggest issues most often—anything inefficient, where bottlenecks commonly occur, or tasks that take longer than they ideally should. Alternatively, focus on areas that have the most opportunity for improvement (a common example is client onboarding—it might work, but it can always be done better and faster).

You should begin by asking “where are the issues with my firm’s workflows and processes?” rather than “what new technology is out there?”. If you identify your inefficiencies first, you can then implement technology that will help you fill those gaps—this is why having standardised processes should take priority ahead of looking at systems. If you do this in reverse you might waste time, money and energy as you try to fix workflows that might already work perfectly well.

Prioritise the categories that matter most

Your firm runs on a large number of processes, so attempting to address these all at once isn’t a smart strategy. Create a plan of attack that focuses on the key strategic priorities of the practice while addressing your biggest workflow issues first. This simple, complete infrastructure diagram of a modern, full-service accounting firm will assist you with this step.

Client service diagram

The services provided to clients are outlined on the left, leading to the internal workflows required to support the practice on the right. In between is what bridges servicing and supporting. Depending on your practice size, type and focus, not all of these categories will be needed.

For example, if you don't perform tax or time tracking, eliminate this from consideration. If your highest margins come from advisory, small business and practice intelligence categories might be your top priorities.

Using this diagram, try ranking the infrastructure components that are the most important to you. This will provide clarity on what technology categories you should consider, and in what order.

Review your options for your top priorities

The accounting technology landscape compiled (and regularly updated) by Accountex USA provides an overarching view of apps you can consider, sorted into technology categories. Beginning with your biggest priority identified in the step above, review the apps listed to get familiar with the options that are out there. You can also look at peer review databases such as Intuit's apps.com, Xero's app marketplace or getapp.com to get a more detailed outline of the options in each category.

Evaluate all the vendors of interest

You should now understand the problem you are trying to solve and have a sense of what options are out there. Based on this, you want to explore the specific vendors to understand their strengths, weaknesses and what might be the best solution for you. It's easy to get carried away here, so set a limit of time for each evaluation.

For instance, try setting aside two hours one afternoon and review eight vendors—no more than 20 minutes for each to draw an initial conclusion of their suitability. This will force you to see the entire landscape while not overinvesting or in any particular vendor or being swayed by any preconceived bias.

App solutions exist for the vast majority—if not all—of your firm's barriers. These steps will help you to shortlist these solutions by narrowing your efforts on the key processes that drive your firm, while minimising the time required to narrow down the field.

In the next article in this series, I'll explain the steps to review these critical few, and identify the best solution for your accounting practice. There is a vast sea of applications out there, but only a handful need to be reviewed for the given problem you are trying to solve.

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.