The solid foundation of any CPA firm rests squarely on the shoulders of management. And in order to properly manage and react to change, you need a great software system that captures, reports, and empowers users to react quickly to what is often a fast-paced and ever-changing marketplace.
Most packages began their lives as simple time and billing software and gradually evolved into completely integrated practice management systems. Capturing not only the daily time activities of all staff members, they also often tie into marketing databases, due-date monitoring, scheduling, and customer relationship management.
Key features found in the most popular systems include the following:
Time and billing. Today's systems are almost universally strong in the capturing and reporting of time. You'll want to make sure that your system allows for flexible invoice formats because there are nearly as many variations to an invoice format as there are clients. Make sure all types of billing arrangements are supported, including fixed-fee and not-to-exceed arrangements. Most important is the ability to report on the profit or loss of each individual engagement, as that is the only way to improve your future service offerings.
Scheduling and shared calendars. Each firm needs to efficiently manage its staffing to make certain the amount of non-productive time is kept to the absolute minimum. The most popular calendar in use is Microsoft Outlook, so some integration to Outlook is essential. There should be a way for all calendars in an office to be pooled and viewed so that scheduling gaps can quickly be found and resources directed to more efficient (billable) uses.
Marketing. Maintaining a common mailing list is one of the most powerful-and often underestimated-features of any program. The less you have to re-key data, the better the odds are that you'll create a master list of prospective clients that you can use to proactively mail your firm's newsletter. The better systems will eventually include the ability to not only capture email addresses but perhaps generate the electronic HTML newsletters as well.
Custom report writer. No matter how good the package, there's always room for improvement in reporting. At a minimum, your selected software should support a common file format, such as SQL, Access, or dBase. Often, an ODBC connection is the best transfer method, since you then can make use of the common reporting tools such as Crystal Report Writer to analyze and further dissect data.When financial data is tracked, you'll want the ability to extract the information to Excel. When you look at the extraction procedure, take careful note whether the information comes out formatted for Excel or requires manual intervention to parse values into the individual cells.
CPE tracking. Every state requires licensed CPAs to obtain minimum levels of continuing professional education. Each member of the firm should be able to receive a detailed listing of CPE sessions attended including critical reports flagging excess or deficiencies in any specialized areas. If you have special education requirements determined by additional certification, then the more flexible the CPE tracking, the better.
Remote access. Getting at your data anytime from anyplace is no longer a neat feature. It's a requirement. Since the Internet is the de facto transmission method of choice, you'll want to be certain that the software has the capability to securely connect from any Internet-connected PC. The fewer configurations that are required on the remote end the better. Having to manually configure dozens of home computers to access your office server will quickly negate any cost savings from this feature.
Due-date tracking. By definition, the accounting profession is driven by deadlines. Managing all these deadlines is made simple by the use of due-date tracking. You'll want both one-time and recurring tasks to be easily accessible within your tracking system. Make sure the reporting is flexible enough that you can create your own tailored reports for the clients that have more than a few time-sensitive tasks.
Project or engagement tracking. Budgets can be easy to set and sometimes difficult to track. If you use a system where the budgeting is integrated with time entry, you'll find that the process flows smoother than entering and tracking time on a separate MS Project file or Excel spreadsheet. Make the use of budgets mandatory on every engagement and the software will let you know (like true practice management should) when staff exceeds projected hours.
Accounts receivable. Once the bills have gone out, the fun often begins. All practice management software should allow for tracking of detailed invoice information versus only a balance-forward amount. Though clients never pay them, the ability to add finance charges will be a plus for targeting the chronically delinquent.With the above in mind, consider reviewing any (or all) of the seven practice management solutions presented below. Remember, many of them have different modules that may be available separately so that you only pay for exactly what you need. In addition, some of the companies offer lower cost systems with pared-back capabilities.
CCH ProSystem fx Practice
Many firms are familiar with the ProSystem fx Tax software. The use of ProSystem fx Practice Management software is a logical extension, since it will use the already significant amount of data built up within the tax processing forms and client database.
In addition to the standard time and billing features you'd expect from a robust practice management system, Practice allows for contact management, project tracking, and easy Internet access for the purposes of remote timekeeping. The software uses the Advantage Database Server, which is optimized for speed on multiple platforms, as well as for performance over the Internet.
Data entered into the tax software doesn't have to be re-keyed in order to update billing records. Time spent on a tax project can instantly update the budget vs. actual statistics. Upon completion of the tax return, an invoice can automatically be generated from within Practice. The system will also generate a large number of tracking reports that can be used to make certain no client's tax filings are overlooked.
An upcoming enhancement release promises to further strengthen the ability to track budget and actual time by adding the capability for the Project Management module to access a list of the forms used within the tax processing system. Users will be able to add their own filing due dates to each form, as well as track which forms have been extended. Full reporting by responsible staff members will make the tedious due-date tracking process a bit more manageable. In addition, future releases will allow Microsoft Outlook as one of the data-entry interfaces.
Firms using ProSystem fx Tax should look closely at Practice. The ability to share common data is an overwhelming advantage of this system.
CPAPractice Manager
CPAPractice Manager (previously known as Visual Practice Manager) offers time tracking, contact management, billing, and project management, all in one easy-to-use and fully integrated system. Based upon the popular Microsoft SQL database, reporting is both fast and flexible.
Keeping track of your clients and contacts is simplified by the ability to synchronize data with your Microsoft Outlook address book. This feature allows you not only to fully utilize the features of Outlook, but it can also act as a conduit through which you can synchronize your PDA and other Outlook-aware software packages. The contact management portion of Practice Manager allows for easy lookup and research of outstanding work-in-process and accounts receivable balances. There are an unlimited number of user-defined fields that can be added to the contact database for even more flexibility. Invoices are created on a WYSIWYG screen where you can tailor the terminology, layout, and graphics to meet firm billing standards. The flexibility to include as much detail as the client requires will be a great help in quickly collecting on outstanding invoices. Throughout the billing process, the project tracking component of the software is constantly analyzing the anticipated hours and allows for the easy creation of reports to show each engagement's progress.
During the entry of time, employees have access to a graphical calendar summarizing hours worked. This screen also displays the budget hours for the designated period of time, so employees are always aware of their productivity goals and efforts toward achieving them.
Firms of any size will find a lot to like within Practice Manager. The use of the popular SQL database structure assures not only an industry-standard data foundation, but also virtually guarantees speedy access to your firm's data.
Time Matters
Time Matters offers versions of software specifically tailored to the legal profession, general business, and accounting markets. Each is available in a standard database format or with the Microsoft SQL 7 database in a professional version geared toward firms needing even more reporting and computing horsepower.
Owing to its legal roots, Time Matters does a superb job of tracking and graphically displaying the calendars of staff members. Group calendars can be created to graphically display available time of either individual staffers or an entire team. When viewing different calendars, you can simultaneously create new appointments for staff members that instantly update the schedules for everyone involved. Somewhat unique to Time Matters is the ability to scan and index client documents. Once the documents are in Time Matters, they can be attached to clients, or projects, or listed in a searchable database that can be accessed by everyone within the firm. Full security rights can be assigned to these documents if their access should be restricted to only those working on a specific engagement. Relieving time for subsequent billing is handled through a thoughtfully laid out graphical interface. Simply placing a checkmark next to a time transaction indicates its readiness for billing. All relevant client and project information is contained on the single billing screen that greatly simplifies most of the billing tasks. More complex billing arrangements, as well as the posting of cash receipts or generating statements, require linking Time Matters to Billing Matters, which provides more of the advanced billing features.Time Matters represents a leap forward in features for most CPA firms. The document scanning and indexing should be a welcome addition to firms looking to finally meet up with the promise of the paperless office. Calendaring is especially strong with the graphical representations of single or group calendars. Firms of almost any size will find a solution within Time Matters that's worthy of a second look.
Creative Solutions Practice
The Creative Solutions Practice suite includes Practice, Scheduling, PS/Timekeeper, PS/CPE Management, PS/Market, and PS/Reporter. Tightly integrated, each section of the suite performs admirably at giving you enough relevant and timely information to not only bill your clients, but also manage your practice.
The software also integrates with the other products offered by Creative Solutions, which means that redundant data entry is eliminated and data can be passed seamlessly from tax return preparation to the time and billing or project tracking.
Using PS Timekeeper, staff can enter their time, whether sitting in their chairs inside your office or on the road working at a client site. By using the Web data entry, time can be entered virtually anyplace there is an Internet connection available-thus speeding the collection of your most valuable asset: billable time.
File Cabinet Solution, a separate module that integrates with Practice, allows for the printing of documents to a central paperless location. These documents can be indexed and shared so that remote users have the ability to closely review client documents without having to physically be in your office located near a filing cabinet.
Monitoring due dates and budgets for different filings and tasks is the job of the Scheduling module. You can create an unlimited number of projects that you wish to track and link different tasks to any of the more than 700 tax return form profiles included with the software. Tasks that are not completed in the current year can automatically be rolled into subsequent years where they will be scheduled for completion.The power of the integrated suite of applications is very much a factor in the success of Creative Solutions Practice. By allowing each of the components to freely share information and create intuitive reports, a truly useful management reporting system has been created for even the most demanding firms.
Practice Master
The Tabs3 Practice Master application has roots in the demanding legal marketplace. Although it is available in either Basic or Premier versions, most firms will want to select Premier for its more advanced synchronization and billing features.
Data entry screens can be customized through the use of a special Form Designer. Common data files can be structured as templates to simplify subsequent entry of information.
Staff scheduling is much simpler due to the graphical calendars that allow for viewing single or multiple employees at one time. When a new task needs to be assigned, the use of a drag-and-drop interface allows for the quick addition or change of selected tasks. Security can be established so only authorized users can view certain schedules.Client information can be synchronized directly with Microsoft Outlook. There can be a virtually unlimited number of documents attached to each client record. This is another useful feature for use when staff is working outside the office and have a need to remotely access a client file.
When working outside the office, the data is synchronized via a briefcase feature that makes a selective copy of data on the server. This information is placed on a laptop, which can then be used in the field. Upon returning to the office, all information is synchronized back to the main program. Any firm needing strong scheduling and contact tracking will find much to like within Practice Master. The ability to synchronize to a laptop without the use of an Internet connection is unique and of assistance to firms without access to a fast connection, either in their office or while on-site with a client.
Commercial Logic PowerPM
PowerPM offers CRM, time tracking, billing, project management, and reporting all within one integrated software bundle. The system is also available in a smaller version called TrakTime, which is designed to integrate with QuickBooks and is sold as a monthly service for use by smaller firms.
New users contemplating the PowerPM suite of products might be interested in the data conversion services offered by the company. Rather than spend non-billable technical staff time struggling with an import job, you can elect to send your data directly to Commercial Logic and they'll manipulate and import the data for you.
Using TrakTime Web, staff can directly enter their daily time via the Internet. This requires the use of SQL Server in the main office for the entry as well as an Internet connection on both ends. Any employee timesheets that have not been submitted by a specific date and time can be queried and listed on a report for quick tracking and subsequent follow-up.
Scheduling and forecasting of time spent on engagements is all accomplished through the PowerForeCast module. Both budgets and staff schedules may be separately maintained within this module. Excel users will like that the scheduling information may be either exported or dragged into a spreadsheet for further analysis or computations. Top-level summaries of staff schedules can be further drilled into so that specific client responsibilities are clearly depicted. Commercial Logic has the experience and products to supply nearly any size CPA firm with reliable practice management tools. Its two levels of products are set to meet the needs of both big and small firms, which quite often have very different needs in terms of features, complexity, and price.
Office Tools Pro
Office Tools Pro does a good job of putting all of the relevant data entry and lookup information onto one screen. From within the central data entry forms, you have access to your client data, time sheet, calendar, work in process, and the to-do list, as well as notes.
Contact information can be established in one central location with subsequent notes added to a common screen with appropriate date and staff signatures automatically appended to each note. Phone messages or notes can be attached directly to a client contact. When phone messages are taken, the information within the note can be transferred directly to the billing module to make sure the maximum amount of billable time is captured for even the smallest tasks.
Scheduling is performed on a daily, weekly, or monthly calendar that is laid out graphically. When you have the proper permissions, you can view any staff member's schedule. One great feature included in the scheduling is automatic creation of reminder cards for upcoming appointments. You can even generate confirmation cards for the client to send back acknowledging that the time is correct.The records management aspect of Office Tools Pro is clearly geared toward the firm that has not yet embraced the paperless office. The management of records through this module is primarily aimed at generating labels for and managing paper files. There is no included functionality for indexing and subsequent recalling of any digitally scanned client files.Office Tools Pro is nicely laid out with a common interface and a minimum of different screens to navigate. It is especially suited toward any CPA firm looking to bring all the different practice management functions under one common system. The document management feature, while not embracing scanning, may just be a perfect match for firms looking for a system to track the boxes and boxes of paper files which often appear out of nowhere and threaten to take over whole office complexes.
Wayne Schulz is a technology consultant, based in Glastonbury, Conn., who specializes in the MAS 90 and MAS 200 accounting software from Best Software.
Practice Management Software
CCH ProSystem fx Practice
CCH
Torrance, Calif.
(800) PFX-9998 www.prosystemfx.com
Price: $1,700 (5-user license), $110 (each additional user).
CPAPractice Manager
CPASoftware
Pensacola, Fla.
(800) 2727123 www.cpasoftware.com
Price: SQL site $210 (seven users or more); $250 (per seat); SQL $290 (per seat)
Time Matters
Time Matters LexisNexis
Cary, N.C.
(800) 328-2898 www.timematters.com
Price: Professional, $300 (first user); $150 (each additional user); SQL $600 (first user), $300 (each additional user).
Creative Solutions Practice
Creative Solutions
Dexter, Mich.
(800) 968-8900 www.creativesolutions.com
Price: $900 (renewable), $1,350 (perpetual). PS1 Timekeeper, $200 (renewable), $300 (perpetual). CSP Bundle, $1,800 (renewable), $2,700 (perpetual)
Practice Master
Software Technologies
Lincoln, Neb.
(402) 423-1440 www.stiaccounting.com
Price: PracticeMaster Basic, $150 (single user), $50 (each additional user), $60 (multi-user); $20 (each additional user); Premiere, $295 (single user), $150 (each additional user).
Commercial Logic PowerPM
Commercial Logic
Hanover, N.H.
(800) 654-0425 www.cli-usa.com
Price: PowerPM $125 per timekeeper; TrakTime; $100 per timekeeper;
TrakDate; $75 per timekeeper
Office Tools Pro
Giardina and Associates
Palmdale, Calif.
(888) 667-8440 www.officetoolspro.com
Price: Five modules, Sole proprietor license, $299; Single station, $499; Five stations, $899; Ten stations, $1,299.
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