Every article about the future of accounting tends to say a similar thing: focus on client accounting and advisory services if you want to be a forward-looking accountant. And alongside these services, there's a lot said about the digital transformation sweeping the accounting space. Traditional accounting systems have transformed into fully-integrated platforms where data from multiple sources are connected in real time - or very close to real time. This means that it's easier than ever before to generate business reporting that is accurate and up to date, which leads to more proactive decision-making. This integrated platform is generally known as a firm's tech stack.
In this article, I'll take a look at how to decide which apps to include in your tech stack and give some examples of some of the best apps available for each of your firm's needs, from document production to accounting software to software that helps you with employee engagement and health. And we will look at how you can build a house - of sorts - out of these fundamental tools.
How to systematically build an effective tech stack 🔨
When it comes to deciding which apps to include in your tech stack, consider which apps will save you the most time. If there's a software that can replace the monotony of manual data entry, go for that! To determine which apps are the best ones to include in your stack, you should:
Test out different apps and use trial and error to see what works best;
Speak to industry peers in your region about the apps that they are using in their stack so that you can make an informed decision; and
Sign up for demos of different apps and compare them to each other.
Pro tip 💡: To optimize access and integration within the tech stack, you should maintain apps in the cloud as either native online apps or as cloud hosted apps. Cloud hosting enables desktop apps to have the same remote access, maintenance, security, and tech stack advantages that cloud apps have without sacrificing existing functionality.
Moreover, this means that your clients won't have to learn a new system.
For dedicated accounting apps, you may want to take a look at the annual AccountingWEB Software Awards to see which apps other accountants rate highly. If you use a specific accounting software, these softwares also have awards ceremonies of their own where they select apps that integrate with them as winners in various categories. For instance, Syft Analytics won two awards at this year's Xero Awards for the UK and South Africa, respectively.
It's also worth reassessing your tech stack each year to see which apps were actually beneficial, and which you could dispense with. If certain apps helped you add value and improve your team's efficiency or your clients' businesses, those are keepers.
Pro tip 💡: Only invest in new technology if it meets a certain need for you or your clients. There will inevitably be added spending attached to a new app, as well as the time spent on training your staff and clients to use it (if your clients can use the app too). So, don't be too hasty when deciding on an app to add to your tech stack.
Start with a solid foundation
Okay, let's get down to building our house now. Step one is simple: start with a strong foundation. Consider which platform you use for everyday operations such as emails, communications, and documents. Most businesses use either GSuite (Google) or Office 365 (Microsoft). Both have their advantages and both work well across a range of devices. In a nutshell:
GSuite works in most browsers on any operating system, and Google also has apps for both Android and iOS
Microsoft offers Office client apps for Windows, macOS, iOS, and Android, and its web-based apps also work across browsers
Both have their own versions of word processing, spreadsheets, presentations, emails, calendar, contacts, videoconferencing, messaging, and note-taking.
Here are some of the key differences you may want to compare:
Outlook offers more functionality than Gmail
Google Calendar is more accessible on a mobile phone than Microsoft's Calendar
Microsoft Teams is more collaborative than Google Meet
Microsoft Excel has more functionality than Google Sheets
Google Docs, Sheets, and Slides are easier to collaborate on than the Office 365 equivalents.
It's worth trying these out for yourself to decide which platform suits your practice best. Once you've decided on your foundation, you're ready to build the ground floor.
Cement that foundation with a solid ground floor
Another fundamental part of your practice is your accounting software. This is the basis of your accounting, bookkeeping, and practice management.
Maybe you don't use accounting software. Your favorite go-to is Excel. Excel is fantastic for many things, but it can be incredibly time-consuming to generate reports there because this is incredibly labor-intensive. Most people simply don't have the time to produce reports on Excel. If you are looking for ways to save time and energy, it may be worth considering a shift in your working.
Some of the most popular accounting softwares include:
In addition to these, you can add on apps dedicated to tax, reporting, receipt management, billing, workflow management, and so on. For instance, Dext (previously called Receipt Bank), and Hubdoc, both store receipts from your transactions, which means you no longer need to keep physical copies of all your receipts. And you can integrate Syft Analytics for all your reporting needs.
The walls
The walls of your practice, to extend the analogy, are the people you work with. Keeping your staff engaged is critical to the success of your firm as the cost of employee disengagement can be very high.
According to The Predictive Index, lack of engagement costs US businesses approximately $483 billion to $605 billion every year! On the flip side, boosting your engagement by as little as 1% can lead to an increase of up to $100,00 in annual revenue! So, it's definitely worth your while to begin measuring and improving your team's engagement. And technology can be very helpful in this regard.
Here are some of the top employee engagement apps to consider adding to your stack:
Blink - an end-to-end employee communication software which fosters engagement between teams and individuals by allowing you to share videos, announcements, and alerts with colleagues. Every employee will be alerted to these shares and they can link or comment on it. Blink also has real-time polling capabilities and a "Blink Feed" which is pretty much like a social media feed that consolidates all the communication around events happening in the office. Blink integrates with SalesForce, Office365, SAP Success Factors, GSuite, and other productivity apps.
Energage - a survey app that has a specific 24-question survey used to measure the culture of your organization. Surveys are customizable. This means that you can adapt them to facilitate intentional culture building which can reduce turnover and help attract top talent to your company.
Officevibe - an app that gives managers the engagement data they need to increase the performance of their teams. Officevibe enables organizations to have more detailed conversations with their team to provide the right level of support with pulse surveys and anonymous feedback.
As Consultant at Journey One and Mental Health Advocate, Sammie Johannes, says:
"I have also seen how effective using a simple form, with two questions to answer each quarter to check in and see how our journey is progressing, can be utilised to check on employee engagement. It is so important to understand your team and what makes them tick, and using software to do this can make a huge difference in employee satisfaction."
In a time that has been dubbed "the great resignation", it's certainly worth your while to keep an eye on how your staff are feeling and how you can make work more enjoyable for them. As Gallup research has found, people leave employers, not companies, so how you treat your employees is crucial to keeping them on.
Add windows and doors to the outside world
Once you have the walls secured, you'll want to think about doors and windows. These are what enable clients to see into the building that you've created and to enter it. To put out the welcome mat, you need a good marketing strategy in place, and technology can be very helpful when it comes to monitoring this.
It's may be worth setting up Google Ad words to drive more traffic to your website. You can then use apps such as Google Analytics or Hotjar to measure the success of your social media marketing. Integrating marketing into the rest of your operations can help:
Bump up website traffic
Convert prospects into clients
Increase brand awareness
Produce a brand identity and positive brand association
Better communication and interaction with key audiences.
Sort out the plumbing situation 💩
Okay, bear with me on this belabored metaphor. Plumbing is essential to any structure. It keeps you out of any... unsanitary situations - like unpaid creditors and debtors who take forever to pay you!
You can save a lot of time on invoicing, checking up on debtors, and paying off creditors by using accounts payable and receivable apps. Using accounts receivable management software enables you to:
Improve your cash position
Increase control over cash and working capital
Increase accounts receivable management efficiency
Improve customer communication
Improve customer service and satisfaction
Reduce administrative costs
Shorten the sales to payment cycle
Minimize credit risk.
Some of the best apps to aid you with this are:
FreshBooks
QuickBooks
Sage Intacct
Wave Accounting
Xero.
🔍: Syft Analytics enables you to analyze your Accounts Receivable and Accounts Payable following either a standard or relative ageing method. You also have the option to choose between the provider method (if you use QuickBooks online or Sage EMEA) and the system method (if you use Xero, Sage UK, Sage EMEA, QuickBooks Online, or QuickBooks Desktop).
Hook up your electricity 💡
To keep the lights on, you need electricity, something which flows through the whole house without a hitch. You don't want to have to spend all your time fixing lightbulbs, but it's a vital operation. The same goes for payroll. It's crucial to pay your staff the right amount - at the right time - but you don't really want to spend hours sorting out the finer details. So what apps could you integrate into your operations instead? Some of the best payroll apps include:
RUN powered by ADP - ideal if you are a small firm wanting flexible payroll plans that scale with a growing business;
QuickBooks Payroll - great for small employers, especially QuickBooks users, who want electronic tax payments and filings;
SurePayroll: ideal for remote working, free, and fully compatible with both iOS and Android devices;
Gusto: full-service payroll with time tracking and employee finance tools; and
Lightyear - great if you have a bigger team and higher volume purchase and you need to automate your creditor reconciliations and/or 3-way matching process.
Tend to the interior
The health of your employees is the interior of your building, a vital component of how everything functions. Health has been front and center in our minds thanks to the pandemic. And health in the workplace has come to the fore as well.
Studies have found that workplace wellness programs can reduce elevated health risks and health care costs while improving productivity, decreasing absenteeism, and improving employee recruitment and retention. But when it comes to health at work, it can be very time-consuming to see to fitness or other wellness programs yourself. Instead, you may consider using apps such as:
Remente - a wellness platform that comes equipped with self-leadership training, tools for mental resilience, and ongoing health check-ins;
Welltok - a health management platform for companies that enables staff to set custom wellness goals and objectives, track their activity and fitness levels, and improve mental acuity with cerebral games and quizzes; and
Strava - aimed at runners and cyclists in particular, this app motivates employees by tracking their workout performance, helping them reach fitness goals, connecting them to the wider community, and enabling the sharing of pictures.
Put a roof on it
Maybe this metaphor went a bit far but you get the idea. Just as a house requires a sturdy foundation to support it, so too does your accounting practice. And there are so many operations which you could speed up or simplify with the help of today's technology. These are just a few ideas.
What does your tech stack look like? Is there anything I've left out here?