Like the firms they supply, slow, but steady is the operating philosophy of practice management software suppliers. John Stokdyk looks at how practice software has developed since 2006.

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CONTENTS

 

Key issues
Client relationship management [2]
Workflow [3]
Web-based systems [4]

Software options
Best of breed, big firm specialists
[5]Mid-market integrated suites [6]
Small firm systems [7]
Online options [8]
Time & fees programs [9]
Niche suppliers [10]

Further reading [11]

Introduction
Like the firms they supply, slow, but steady is the operating philosophy of practice management software suppliers. The past four years have seen a wholesale transition to Microsoft's .NET design architecture and SQL Server database. While this move has done wonders for user interfaces and integration, the costs and struggles involved for software houses triggered a major wave of consolidation [12], with PTP becoming part of IRIS, CCH acquiring MYOB's practice wing and Thomson buying Digita.

This is the sign of a mature market and a scenario that works against innovation, according to Relate Software's Ian Lucey, a refugee from one of the big stables. His previous company Apex sold out to Sage in 2000 and former managers subsequently moved on to challenge the old order with DRIVE, a more modern, integrated package built from scratch that carried off the 2008 Software Satisfaction Award for practice management tools.

Software Satisfaction Awards ratings

Practice management results	2007	2008	+/-
Relate/Keytime DRIVE	3.00	3.73	▲
Practice Engine	*2.96	3.59	▲
APS Advance	*3.00	3.46	▲
MYOB VPM (now CCH)	†2.88	3.04	▲
Sage Practice Solution	2.56	3.01	▲
Star Practice Management	2.75	2.83	▲
IRIS	†3.10	-	◄

* Awarded Honourable Mentions, but did not gain big enough survey samples to qualify for category shortlist (minimum 5% share).
† 2007 result in tax & practice category included for comparative purposes.

"We at Relate see this as the end of the Windows-based standalone compliance tools for practices," Lucey commented last year. "Accountants are masters at automating processes, however we have now arrived at a stage where the ability to produce accounts, tax returns and company returns electronically has reached its peak." The next battleground, he predicted, will focus on how accountants access and centralise all the different data they hold.

One promising development over the past four years has been XAPL [13], the eXtensible Accountancy Practice Language promoted by the ICAEW IT Faculty with Digita's support. XAPL could pave the way for tax and practice applications to share data seamlessly over the web, but according to Lucey, "This will probably never happen now with four large PLCs who will hope to protect the existing users bases that they have paid well to buy."

But industry politics and ownership patterns are secondary to the purpose of this guide, which is to document what the different applications do and who they are designed for. In the sections that follow, we examine some of the new elements that are available from practice management applications and catalogue the different types of system available.

While any mistakes and omissions are IT Zone's responsibility, we would like to thank Mark Ryan of Cynare [14], Simon Hurst of The Knowledge Base [15] and Nigel Harris of Burton-Sweet for their contributions to our ongoing research. Thanks, too, to the vendors who have taken time to demonstrate their programs and the hundreds of AccountingWEB.co.uk members who have taken the time to pass on their observations and thoughts . Many of their comments on particular systems are quoted below. If you feel an application has been omitted or misrepresented, either add your comment at the end of the article, or email the editor [16] in confidence.

Client relationship management

When I last looked at practice management systems in 2006, a standard check was whether they could accommodate extra, user-defined fields - useful for holding profile data on prospects and clients, or for marketing activities such as seminars and golf days. Most practice programs can handle these needs, but can lag behind more sophisticated client relationship management tools.

Once DRIVE picked up on the common CRM idea of tracking all communications through a single point, most of the other big developers followed suit with similar Communications modules that list all emails, telephone calls and notes recorded against a particular client.

While marketing experts may want more capabilities such as campaign mangement tools, practice software developers have a built-in advantage, as IT Zone guide to CRM software for accountants [17] explained last year. Practice suites already contain the data and history you have compiled on clients. Going to a separate application would force you to manage two separate databases. It is much simpler and more effective if everyone in the firm is using a single data source.

CRM packages also fall down on some of the specific requirements of accountancy firms, as AccountingWEB.co.uk member Ken Howard pointed out: "They never seem to allow for a large number of small recurring tasks with a small number of people, ie VAT returns and year-end accounts. In many cases, they don't even provide for something as simple as copying and pasting all the stages of last year's job and repeating it for the next year - they expect you to type in all the different stages again manually, for each job and for each client, year after year!"

As long as they can cover those bases and cater for the growing popularity of email for communicating with clients, specialist practice developers aren't sweating too much over CRM/ "Email marketing is all they want, nothing more sophisticated," said CCH Software's Simon Crompton "They just want to cross-sell and communicate more easily and cheaply with clients."

Digita, too, does not see the need for much more sophistication within its Contact Manager. Digita product manager Max Thomas talks in terms of "partner-proof" systems that is simple enough for senior figures in the firm to run out a quick marketing message to selected clients.

Workflow

Workflow tools have caught on in the past three years and are one of the areas where developers are trying to differentiate their programs from each other. Many packages including Star, CCH ProSystem and IRIS will link the workflow tools to budgeting and resourcing so you can define the budgets and team members for particular jobs as you enter them into the system - and set up timesheets and milestones against which you can monitor the engagement.

The way the software industry works, these facilities will soon become commonplace, particularly as developers embed Microsoft's Workflow Foundation in their programs. If you are approaching a workflow-enabled system, however, ensure you appreciate the complications that will come with the new software and the extra effort you will have to pu into setting up the system. You have to make sure you really understand your working processes to avoid overspecifying milestones and the alerts they might generate. Once you have overcome this hurdle, however, most workflow tools make it relatively easy to adjust job schedules, time tables and rates.

Web-based systems

Huge amounts of money and programming time are going into the arms race between suppliers to achieve the ideal, .NET integrated suite. Yet some people would argue that the profession's big software players are fighting the last war.

Dennis Howlett [18], for example, argued not so long ago that on-demand software as a service suppliers will be able to client service capabilities into their transaction systems and "are going to eat the incumbents alive. Control the relationship where it matters - with the client. Do that and all this other stuff about timesheets becomes totally irrelevant".

It's an interesting scenario, but hasn't happened yet. Nicholas Myles, David Forbes and Ian [19] countered Howlett's argument by pointing out that web access wasn't universal and totally reliable enough yet to meet accountants' expectations. And for all the convenience and flexibility of web-based applications, the maturing generation of Windows-based practice programs have a head start for user productivity, flexibility, reporting and integration.

Advance from APS [20]
New Zealand-based APS has infiltrated the UK accountancy profession like a crack squad of Microsoft-armed commandos. The Advance suite encompasses CRM, Business Process Automation modules that can alert managers to things such as WIP budget targets, lock up levels and even timesheet completion rates. Advance has been specialising for several years on paperless operations and implements Interwoven's Document Management as its Worksite module, which keeps both electronic documents and emails in order. Many of the system's functions, including timesheets and the Practice IQ business intelligence module, can be delivered to users via web browsers as Microsoft Office web components. On the strength of these capabilities, Advance has picked up a string of big firm contract wins [21] over the past six months. In addition to being shortlisted for the 2008 Software Satisfaction Award for practice management, Advance also won Accountancy Age's practice management software of the year award in 2008.

What users say
"A fully integrated and future proof suite of practice management technologies that will serve our ever growing needs. Miles Hewitt-Boorman [22], IT Partner, Chantrey Vellacott

CaseWare Practice Management [23]
A recent development from a company better known for its accounts production tools, CaseWare Practice Management links the CaseWare Time (timesheets and billing) application to task tracking and contact management tools in Microsoft Outlook via a synchronisation module (CaseWare Today). These are backed by an on-screen billing facility plus sales ledger and reporting functions.

Practice Engine [24]
Practice Engine confirms the stranglehold Microsoft's SQL Server database now has on the upper reaches of the accountancy profession. Described by one user as a big database engine, the program can be as flexible and functional as you want - if you've got suitable SQL and database administration skills in house. The real power of Practice Engine comes from its web browser-based interface, which provides a real time view of the central client contact data, time and billing information and popular KPI dashboard views. Because it's accessed via a browser, users can log in from anywhere at any time and get an up to the minute view of their information. Practice Engine comes with a programmable workflow kit and internal document management. It also has two-way integration with both Microsoft Dynamics GP and Access Dimensions for billing, WIP and job costing/accounting purposes.

What users say
"It's browser-based and real time, so everybody maintains time sheets continuously. I keep it open all the time and can see where we are." Nigel Harris, Burton-Sweet.

Star Practice Management [25]
Star Practice Management is a Microsoft SQL Server/.NET-based system that takes a modular approach, so customers only need to buy the modules they want to use. The core Time & Billing solution can be enhanced with WIP and receivables ledgers, automated billing routines, plus KPI dashboard and exception reports. Equally impressive is a flexibile web-based time entry mechanism. For paperless operation, Star typically integrates with either Invu or Easy document management systems. While featuring large firm-type facilities, it can be tailored for smaller firms that prefer to maintain Microsoft Access databases.

CCH ProSystem [26] (incorporating Viztopia Practice Management)

CCH ProSystem is currently a work in progress to blend the best bits of the old Viztopia/Solution 6 tax and practice tools with CCH's existing ProCost functions into an expanded, .NET-based ProSystem family. MYOB's Central client dashboard was selected as the new user interface, but all of the underlying functionality of both product wings has been retained, including modules for more advanced CRM tasks such as campaign management, resourcing and workflow-driven staff assignments, suite-wide reporting and document management. The customisable Central database makes it easy to see what you want within the system and CCH claims to be the only developer to have built a .NET-based, end-to-end delivering tax and practice suite (give or take a few stray modules such as accounts production that are still making the transition). For more detail, see IT Zone 2009 review: CCH ProSystem [27]

What users say
"It has streamlined our timesheet and invoicing functions and reduced a lot of admin time. If the large choice of standard reports is not enough then the report writing function is relatively user friendly. Jane W [28]

"We are a small firm and use ProSystem and find it very good. Stephen Methuen [29]

Digita [30]

Digita Contact Manager 2.5 is the latest instalment in a four-year strategy by the tax software specialist to branch out and offer wider practice management tools to its customers. It lacks many of the bells and whistles of more mature practice applications, but like Digita's tax products, it features a smooth, Microsoft-like interface and Trackers that are used to set up job sequences, to-do tasks and alerts. The user-driven reporting system is good, and wizards abound within the system to steer you through things such as new document/HMRC form creation and mail merges. Still awaiting a time & fees module, due in May/June 2009. IT Zone 2009 review: Digita Contact Manager 2.5 [31]

What users say
"We are only a small firm, but for doing basic tax and accounts work Digita comes highly recommended. The central module is not overly complex and simply works to share data across the main products... Very easy to use, a bit cheaper and most importantly VERY helpful support function if staff have any queries." Chris Jones [32]

"They are taking a long time to produce a comprehensive practice management suite. They have a contact manager and should soon be issuing time and fees. Contact manager has some basic flaws. You can't print or export a list of clients. Peter Saxton [33]

DRIVE [34]
Designed by the people behind Apex (which was sold to Sage in 2000), DRIVE is a second generation integrated suite that combines client data and CRM facilities with workflow tasks and alerts that can work as an integrated suite. Like most integrated packages, DRIVE features a configurable central launch pad that takes you into different views and modules, including tax and accounts production tools. Its Communications module raised the bar for providing a single view of client contacts and links to DRIVE's native scanning and document indexing facility. Having targeted mid-market firms who wanted some of the facilities of larger systems, with out the cost, DRIVE has carved out a strong niche among UK practices and won the 2008 Software Satisfaction Award for practice management software. More information: DRIVE review [35] (2006)

What users say
"It's easy and has more features than any other PM software." Shilendra Sharma [36]

"On a par with, or superior to, any other system currently available. The database and document management facilities are excellent and we believe essential for the efficient operation of the practice." David Saunders [37]

IRIS [38]

IRIS was the first fully integrated tax and practice suite, and remains the market leader. Rather than aiming for all-encompassing sophistication, it tackles core practice functions in a straightforward way. Running on a single database that also handles tax and accounts programs, IRIS Practice Management deals with client and staff data, time & fees, billing, reporting, and marketing functions - all the core things you would expect a practice management system to do. While the internal mechanics work well, the IRIS interface is not quite as slick as some of its younger rivals - with the exception of the graphical Staff Planning module (pictured above). The objective, according to product manager Ros Bedford-Smith is to make available the core 80% of functions firms need:"We're trying to give customers choice without drowning them." Hundred-client Starter Packs make the program acessible to smaller firms, but the costs can rise quickly as new modules are added and client numbers increased. For more detail, see IT Zone 2009 review: IRIS Practice Management [39]

What users say
"Started with their basic package and changed my licence as the practice grew. May not be the cheapest but the best I have used and as it is fully integrated says a lot of time which pays for itself, especially once you have a decent sized client base." Graeme [40], who also " found it user friendly and support back-up pretty good".

The Practice Management and Automail modules are excellent and can track just about everything automtically and you can manually link in the bits that it can't. Old Greying Accountant [41]

"[ Time & fees] time consuming and not very user friendly... If you want to look at a less paper office in future, you'll need to look beyond IRIS, which will be expensive. Karen Howard [42]

Time & Fees is OK for time recording, particularly as it has the benefit of integration with the working modules, but its fees aspect is far too complicated to use." Euan McLennan [43]

Sage Practice Solution [44]

Useability is the guiding philosophy behind the Sage Practice Solution (SPS). With so little to choose between the functionality of practice Systems, Sage reckons that a consistent interface across the suite - and with Sage 50 accounting and payroll products - will pay big productivity dividends. The interface is very good, with graphical Process Maps to guide users around the modules. Clients are shown in a central Client that can be adjusted to your tastes with a Visual Control Formatter, while hyperlinks, task bars and quick navigation tools abound to speed you around the different modules. Wizards and workflow template management tools take some of the pain out of system configuration. "We've added to the sophistication of the features rather than adding to them," says R&D director Ben Bishop of the Sage Accountants Division's efforts in recent years. "We haven't just added things to tick them off a list, but to deliver features that really meet needs of accountants." For more detail, see IT Zone 2009 review: Sage Practice Solution 1.4 [45]

Smaller practitioners and those starting up for the first time frequently complain on AccountingWEB.co.uk that what they really need are simple, low cost tools that help them stay on top of their workload.

"I have yet to find decent practice management software," commented Nik last year. "Most are very expensive for a new start-up practice and have so many features suited to much larger practices."

Ian Hunt [46] warmed to the same theme in August 2008. "The sheer quantity of steps, procedures and approvals (even if you’re the principle partner) make them impractical for any small practices."

The problem with packages like IRIS, he continued, is that the sheer volume of features, options, settings and configurations actually hinder your productivity rather than aid it. "What is the point of having a 'larger than needed' system that will always hinder your productivity, cost you more than is necessary, whilst not providing a true return of investment? It’s like buying a 7-seater MPV to commute to work and back when you’re the only occupant."

In response to these postings, here is a selection of practice management programs catering for the smaller practitioner.

ACCA Practice Manager [47]
Alone among the professional bodies, ACCA has branched out into the software trade with its Practice Manager program, which it effectively markets as a means to help firms pass their quality reviews. The program has a time and billing module, job trackers and to-do lists and document management feature that comes with a collection of standard letters. Starting from £575 for a standalone system, plus £230 annual maintenance, the application is also available for a £46 monthly fee. However user feedback on AccountingWEB.co.uk has not been great. Eric Broadhurst called it "expensive and cumbersome", while Ken Howard [48] "Found it very hard and time consuming to use. There is no doubt it does its job, but its not very intuitive to use and it takes a lot of time and energy to keep it up to date."

Chartsoft [49]
Chartsoft is the outgrowth of Rugby-based firm Akhtar & Co's enthusiasm for software development. With the exception of its own tax application, Chartsoft has built up an impressive portfolio of integrated modules including time & fees, CRM/marketing, payroll and bookkeeping. The core database connects the different parts and lets you assign tasks and deadlines. These will appear on staff planning schedules and can be tracked for deadline and WIP purposes. Similar tools can be applied within the Marketing module to scheduling promotional activities and follow-up calls.

Logical Office [50]
Logical Office is a basic CRM suite that has been packaged with a suite of practice management tools covering time & fees, workflows and document management. The supplier's general package of office efficiency tools includes a system that can handle engagement letters. It links directly with Microsoft Office and Sage 50 and can synch with IRIS and CCH tax and practice programs. Campaign management and promotion modules are promised in the near future. A no-frills version starts from £195 a year, with the full accountant collection running to around £600pa. "The hub of my sole trader accountancy practice, it holds client information, incoming and outgoing correspondence and also automatically files ingoing and outgoing emails in clients' folders. I only use a fraction of the functionality but it saves a truckload of time and is software I'm very happy with," commented AJ [51]

OMS (Office Management System) [52]
Costing £150 per month for up to 10 users, OMB offers practice management with CRM and document functions. It takes care of practice-specific tasks such as timesheets, billing, invoices and fees as well as task assignments, reminders and marketing activities such as mailshots - all configured with accountants in mind. "I’ve found it to be much simpler to use than Iris, much more productive (timesheet and billing is so easy), much more affordable and quicker," commented OMB fan Ian Hunt [53].

Pinacle [54]
Pinacle from Dorset-based Pinacle Accounts is an integrated practice suite with accounts, tax, practice management and payroll bureau functions. It includes final accounts templates for sole traders, partnerships and limited companies plus personal, partnership and company tax routines. Practice management modules include time recording, fees ledger and client managment.

PTP Professional Office [55]
PTP Software is verging on becoming a member of the integrated suite set, but as the junior partner in the IRIS practice software portfolio, it is intended to be a lower cost alternative for smaller firms who don't want the whole IRIS package. PTP's Professional Office is a time & fees and billing program that includes a complete ledger system, client reporting tools and a Task Tracker. The application tackles these activities in a straightforward way and offers good value for money with a £149 starting price. Adrian King's [56] 10-strong firm has used The Professional Office for several years with no complaints. "It works well over a network, and enables you to record time & disbursements, run WIP reports and then either issue bills directly or write off time once billed using your normal invoicing system." However, Ken Howard [57] warned that as you take on more clients and PTP tax modules, the annual fees can start to climb up towards big suite prices.

Bizezia [58]
Haywards Heath-based Bizezia.com started out as a vehicle for online marketing and practice documentation, but has been expanding its practice intranet service to incorporate more and more of the elements found in full blown practice suites. In addition to around 130 engagement letters and reports, the Bizezia portal gives you a customisable home page with access to rudimentary online expenses, calendar and task management. It also has a shared document storage area and a library of databases such as contacts and assets that could form the basis of more sophisticated tools you develop. It can also link to the More Online accounting system. The functional ingredients are still a bit thin, but Bizezia points the way to a new way of sourcing your practice technology..

HQ for Accounts [59]
Created by Adrian Pearson of Pearson Associates in response to a 2007 Any Answers [60] posting, HQ for Accountants is a web-based solution built on top of selestial.com's generic HQ system. Further details of the service will become available when the Cloud-based practice system launches into the market in the early part of 2009.

i-Tr@der [61]
i-Tr@der is a web-based "business platform" created by Internet Power Systems and was recommended by AccountingWEB.co.uk member Shaun McGuinness [62] as a basic admin and client management mechanism. "All my client information, folders and files are stored online," he wrote. A monthly fee of around £70 includes email linked into a CRM package and some accounting and billing features. "We don't keep any paper files and all the data is scanned and uploaded. The beauty of it is i can log on anywhere using a laptop or even internet cafe if I want to," commented McGuinness.

Sage CoreTime Tempus Pro ASP [63]
Sage's CoreTime's Tempus Pro is a web-enabled time & fees and practice management system available online via the Sage CoreTime site in Ireland. "exceedingly rapid" returns on investment with no sacrifice in functionality. Having charted the course and proved the case for online time & fees management, will CoreTime lead Sage's Accountants Division in the same direction?

Twinfield [64]
Alongside its Cloud accounting system, Twinfield offers a collection of online applications for time & fees, billing and expenses management. UK representative David Terrar has been promoting his plans to move into practice management and building alliances with small practice tools such as HQ for Accountants (see above) and PaperFree, a document management program written by CWM. Links to CRM tools are also available, but Twinfield's vision for online practice management has yet to come to full fruition.

Advanced Time Reports [65].
A US package that resides in the Windows toolbar and records time using the computer's clock. "It is easy to use and produces good reports, and all for the knock down price of $29.99!" commented Gordon Trenchard [66]

FourFourTime [67]
First brought to our attention in an Any Answers [68] thread, FourFourTime is a £50 time clock "designed for people who wanted it simple". You click the on-screen start button when you start working and click Stop when you stop. A dialogue box asks you to enter what you did in that period, and the results are output in a simple, Excel-compatible report. Group versions are available that can amalgamate work carried on on joint projects. "It's like a stopwatch effectively but you can put a note to say what you've been doing. Sure it's not perfect, but it's cheap & does what I need," commented. Lee [69], one of many AccountingWEB.co.uk members who has taken up FourFourTime.

Getmytime.com [70]
A US-hosted online project time-monitoring system costing $10 a month, with accompanying expenses system. "What was really nice was that you could import straight into Quickbooks and any authorised user could enter his or her data using Internet Explorer from any computer," commented Paul Johnston.

Timesheet Online [71]
Another web-hosted timesheet and expense management system from the US. Designed for "enterprise" users, the program is offered on a free trial basis and at one time was available free for up to 10 users (check with Journyx to see if offer still holds).

Sage time & fees add-ons from Deepak Sareen [72]
This accredited Sage developer produced the Timeslips application now owned by Sage, but also supplies a more sophisticated Timesheet system that trackd your work and sends the data back to Microsoft Project. At the lower end of the scale, Sage Carpe Diem is a time and expense tracking system suitable for up to 25 employees.

TimeBox [73]
Another software punch-clock, enhanced by a mini-web server that lets you record your work time remotely. You can print, view, or save summary reports to disk, or export them to a spreadsheet or database application for further analysis.

Timesheet Management System [74]
An Excel-based timesheet mechanism marketed via The Accountants Circle website for £49. Includes start-stop buttons for recording time and will output timesheets for an unlimited number of clients and individuals.

Star TimeXpress2 [75]
Basic time & fees program for firms with up to 10 staff from Star Computers. Costs are somewhat complicated, but likely to be less than £500, according to Star's Ian Thompson. "I started using [Star Time & Fees Xpress] about 18 months ago and have found it very useful for recording time and billing." - Tina Porter [76]

Timeslice [77]
Yet another US time-recording utility. "Nice and neat and only $49 one"off," said Stephen Elms [78]

IPS Insolvency Practitioners System [79]
Glasgow-based Turnkey Computer Technology has constructed a complete suite for insolvency practitioners based around Microsoft's Navision business software. It can take care of all the practitioner's accounting requirements, plus cash management, asset recovery, forms production, diary management, accounts production. It will output full SIP 9 reports.

Orbis TaskCentre [80]
TaskCentre is a specialist business activity monitoring system based around programmable alerts. It provides a process modelling and workflow environment within which you can specify exception conditions that will generate automatic alerts from any of your business systems.

Pentana Audit Work System [81]
The Pentana Audit Work System (PAWS) is primarily designed to support audit management, with risk management tools to help users comply with corporate governance requirements such as Sarbanes-Oxley and the Combined Code. In addition to a set of web-based tools for audit scheduling and management, it has optional links into Pentana's Retain resource planning and time management modules.

Practys [82]
Practys from Sussex-based Commercial Software is designed to handle accounting, project costing and time & fees for professional firms. It comes with nominal, sales, purchase and cash ledgers, plus accounts production, cost, stock and time recording modules.

Further reading

Focus on practice technology [83]
Practice software consolidation: when giants collide [84]
IT Zone guide to practice management software [85] (2006)
IT Zone Library: Practice IT [86]