Practice Management Software Review.

• Author: Rovelto, T. Rose

What kind of software do you need to manage your firm? For starters, you need a package that will help you both organize your staff (your number one expense) and record your receivables (your number one asset). But practice management (PM) software should be a lot more than just an expensive time and billing system. A good software package will help you control, analyze and administer your clients. It also should help you add to your firm's bottom line.

Choosing and investing in a PM software package can be difficult, especially for a small firm. Given the large number of packages to choose from, it is essential that managing partners and other CPAs selecting a system do the necessary research. Some managing partners resist change because the work is getting done--albeit inefficiently or through antiquated means. They don't want to rock the boat. But there never is a good time to uproot a familiar system or implement a new one.

Be a sleuth

You have to start by doing the necessary due diligence. The following advice should help you sift through the maze of packages so you can choose software that is right for you, your staff and your firm:

1. Don't let price rule your decision. As with most products, you get what you pay for. A cheaper system may be all you need right now, but a more expensive system could help you develop your practice.

2. Look before you leap. Proper planning does not guarantee success, but not planning will almost certainly result in at least a few headaches and, perhaps, even failure.

3. Don't let the hardware dictate the software. If the software you want is too powerful for your current hardware, you should consider updating the hardware.

4. Get staff-level buy-in. Your own involvement in the decision process is, of course, very important, but you also must find out what potential users think before you buy. If you involve the users during the research phase, you will have an easier time implementing the program.

5. Prioritize your requirements. Make sure you know what you "need to have" and what you "would like to have" in a system. Put it on paper before you start your shopping.

6. "Demo" the products. Determine what package handles all your requirements and make sure you are comfortable using it.

7. Talk to peers. Be sure to talk to a number of similar sized firms. Ask specific questions about their planning, selection and implementation process.

8. Select the best package for your other systems. Determine if the software...