Streamlining Your Accounting Practice with the Right Tech Stack
May 1, 2023
May 1, 2023
Accounting comprises a variety of complex operations. Processes such as preparing financial statements, tracking tax information, and filing reports, can all be time-consuming for even the most experienced accountants.
Fortunately, advances in accounting practice technology have made it possible to streamline many of these tasks, allowing accounting professionals to focus on more strategic activities.
However, the proliferation of tech tools can present a challenge in itself. How do you know which products are best suited for your needs? To help you in choosing tech tools for accounting, here are important things to consider:
Essentials Apps to Have in Your Accounting Stack
First off, it’s important to know what apps to include in your accounting stack. Because the SaaS marketplace is saturated will all kinds of apps that promise different things, here are the ones that will serve accounting firms best.
Cloud-Based Accounting Software
Accounting software, or accounting database software, is the primary tool accountants use to manage financial operations. Traditionally, these programs were installed on local computers. But the emergence of cloud-based software has revolutionized the way firms do accounting.
Cloud-based accounting software provides storage in a secure online environment with access from any device or location. This allows companies to collaborate more efficiently while reducing operational costs associated with IT infrastructure and system maintenance.
Cloud solutions also offer advanced features such as accounting practice automation tools, multi-currency support, and intelligent reporting capabilities—all essential for smooth financial management.
For example, QuickBooks Online is a popular cloud accounting solution for small to medium businesses. Its latest updates have steered it towards a more holistic approach for managing accounts, payrolls, invoices, and inventory. It partners with over 700+ different accounting, marketing, inventory, manufacturing, productivity, automation app, and solutions providers, empowering businesses to do more through a single source of truth.
A vital component of an accounting tech stack is analytics. Accounting analytics software allows firms to generate an in-depth analysis of financial data. These solutions use powerful AI algorithms to identify trends, analyze financial performance, identify cost-saving opportunities, and more.
Some accounting analytics tools also generate automatic reports that can be shared with clients or used internally for budgeting and forecasting.
An accounting solution like Quickbooks Online already has analytics and forecasting features. All the data it collects from various areas, including payroll, AR/AP, invoices, and more, can be viewed in one place.
Some analytics tools are designed for specific industries. Forecastr is an app for construction companies that provides real-time financial forecasting and budgeting. What’s more, it provides integration with accounting software like Quickbooks.
Automation tools streamline tedious accounting processes like invoicing, bookkeeping, and bank reconciliation. Usually, these features are readily available in accounting software, but some businesses may find value in stand-alone solutions.
For instance, Dext is a cloud-based document management platform that automates the collection, storage, and retrieval of invoices and bills for improved efficiency.
Inventory Management Software
Inventory accounting is essential for any business dealing with physical goods. It requires tracking the quantity, cost, and value of items in stock over time. These processes are all made easy with inventory management software.
Inventory management tools, like Cin7 Core, enable users to keep track of their items in an organized and efficient way. They provide real-time data about stock levels, locations, and other important metrics related to inventory costs and performance metrics.
Inventory management apps also allow firms to optimize the purchasing process by automating purchase orders based on demand forecasts or existing stock levels. It’s an excellent tool for preventing overstocking or running out of supplies unexpectedly—both scenarios that can be costly for businesses.
Things to Consider When Setting Up Your Accounting Tech Stack
When building your accounting tech stack, it’s not always about choosing the most popular software or the most expensive option. Rather, it’s about finding the tools that work best for your business and will help you reach your goals. Here are some key factors to keep in mind:
- Think about industry-specific tools: Many software packages provide general features that may be useful, but they can’t match the power of industry-specific applications. For example, Keela and Kindful are apps best suited for non-profit organizations since they specialize in donor and fundraising management.
- Consider integrations: A well-designed accounting tech stack consists of tools that are able to integrate with one another. This eliminates the need for manual data entry and seamless communication between systems.
If you have existing accounting software and are looking for additional tools, make sure they are compatible with the existing system.
- Some marketplaces offer packages: There are plenty of SaaS marketplaces in existence today, but some go a step further and offer entire software packages. These provide an all-in-one solution that includes everything from accounting to inventory tracking.
For instance, the QRP Store offers accounting packages based on industry. These contain popular apps that work well together and are well-suited for the specific industry.
Updating Your Accounting Tech Stack
Using the right technology tools allows your firm to cater to clients’ needs more efficiently and cost-effectively. This can help you stay competitive in the accounting market, optimize operational processes, and even increase your bottom line.
Knowing the type of software you need in your tech stack is just half the battle. The next step is choosing the best products to power your accounting practice.
SaaS Direct is partnered with an impressive tech stack for accounting firms, including QuickBooks Online, Cin7 Core, and Dext. We provide subsidized access to the latest accounting software and a range of other tools and services. By working with us, you can eliminate the challenge of researching products and finding the solutions that fit your business.
For your convenience, we also offer pre-built tech stacks for various industries, like construction, retail, and even profit, at the QRP Store. All packages are designed around QuickBooks Online, meaning all other tools integrate with the main accounting software.
Save time on researching individual software by visiting our store and browsing our pre-made tech stacks today!