A practical framework for making smarter technology investments for your firm
Accountancy and bookkeeping are now among the most tech-shaped industries around. The industry “tech-olution” really began roughly 15 to 20 years ago, and has continued at lightning speed since. Technological upkeep is a baseline necessity, and for progressive practices, one of the few real competitive advantages.
The seemingly never-ending blitz of new platforms and applications can be genuinely confusing. That complexity doesn’t excuse inaction. Decisions still need to be made, and yes, operational workflows will (continually) need to be updated. Firms that fail to keep pace with technology risk falling behind quickly, particularly as competitors increasingly use it to improve efficiency, service, and their overall competitive position.
How much technology does your practice actually need?
Let’s talk about “proportional” first. Tech scale is variable and has to fit the practice. Some firms undershoot; others invest in far more technology than they can use. Your investments should match the focus and current stage of your practice — or ideally, the stage you’re heading into next.
In short, ask yourself what the main strategic objectives of the firm are, and how does the technology stack help achieve them without becoming a distraction.
Weighing the value vs. cost of new technology
The ancient adage of “is the game worth the candle” applies as much, and in some ways even more, in today’s tech investment decisions. Before any adoption decisions are made, consider and confirm the value of that technology to ensure it warrants the cost.
When thinking of value, try to forecast how an application might make an impact. For example, ask questions like:
- Will it create more value for clients? Does it provide better insight, faster answers, or a noticeably better client experience?
- Will it expand the firm’s capacity? Does it reduce manual work, eliminate bottlenecks, or allow the team to serve more clients without adding people at the same rate?
- Will it improve decisions? Does it help the firm or its clients identify risks, recognize opportunities, and think differently about the business? Some tools can actually shape practice management decisions, as well as client advisory, in a powerful way.
- Will it create new revenue opportunities? Could it support new services, improve pricing power, or deepen existing client relationships?
Wagepoint’s piece on selling payroll as peace of mind digs into exactly this shift — helping firms position payroll as protection and trust for clients, not just task completion.
The second important consideration is the cost.
Software can add value and save money. But it also costs money and time. Align your choices with what will most benefit your practice and what can also benefit your clients. Consider what your team can reasonably expect to implement well, and be realistic about the time and training required.
How to choose the right tools for your tech stack
If you’re like us and lean toward perfectionist tendencies, tech decisions can quickly advance the aging process. The irony in the quest for the ultimate tech stack is that the quest will never end. As quickly as the ideal is created, there’s a better ideal out there. Most tech decisions are not long-term. Recognize that, decide, implement, and move on. The tech of tomorrow will be there then. A decision made today will immediately begin working for you today — let it simply do that.
That said, commit to a timely revisit of your current stack to ensure you’re not missing an adoption or upgrade opportunity that would make sense.
Industry-standard tech platforms aren’t really even decisions; they’re, well, standard. The supporting tech pieces, however, are specific to your operations. You’ll combine these supporting applications to create your stack.
In your selections, consider function and integrations. Do a bit of research (just a bit). Look into how any specific software can integrate with other applications you have or are considering. Software providers will often showcase the function and benefits of their product(s), and how their products can combine with others.
What’s new at Wagepoint is a good example of what to look for. AI-assisted payroll, built-in timesheets, mobile self-onboarding, all inclusive pricing, and integrations with platforms like Xero, QuickBooks Online, and FreshBooks show how far the category has moved from manual, standalone payroll runs.
Should you hire a technology consultant?
Most practice owners don’t spend their days tracking the latest and greatest software releases. That’s part of why technology consultants who specialize in the accounting/bookkeeping space keep multiplying.
A good consultant will know the current options and how to match technology to your firm’s scale. Many even offer set-up and integration services. There’s a cost, but the return usually justifies it. Tech providers also often have implementation specialists who can help with the adoption/upgrade process.
How a modern tech stack boosts your practice’s value
One of the best parts of adopting new technology is the immediate benefit— operational efficiency, workflow effectiveness, added value for clients.
But there’s another important benefit that becomes especially relevant when you start thinking about the future of your practice: technology can influence how attractive your firm is to potential buyers.
At some point, many practice owners begin thinking about what comes next — whether that’s continuing to grow, bringing in a partner, or eventually selling. A well-maintained, thoughtfully integrated tech stack can put your practice in a much stronger position when that time comes.
Firms that stay current with technology often stand out to buyers and command the strongest prices in the market because the underlying infrastructure is already in place and working effectively. We’ll use the analogy of buying or selling a house — an updated house with everything working well will attract much more interest, and sell for notably more, than the same house that is outdated and requires significant work to bring it up to date.
For your benefit today, and as long as you operate your practice, maintain a current tech stack that:
- aligns proportionately with the stage and focus of your practice;
- delivers a strong value-to-cost equation for both the practice and its clients; and
- supports efficient, scalable operations.
And for your benefit in the future, when you decide to sell your practice, having a current and aligned tech stack will certainly add desirability and value in the market.
At POE Group Advisors, the team focuses exclusively on accounting and bookkeeping mergers and acquisitions (M&A), giving them a unique perspective on what buyers look for when evaluating a practice.
And just for fun…
For a list of all the ways technology has failed to improve the quality of life, please press three. (credit Alice Kahn)
About the Authors:
Sean and Carrie Mulrooney are lead intermediaries on Poe Group Advisors’ Canadian team. Sean and Carrie operated their own accounting practice for 21 years before selling and transitioning it through Poe Group Advisors in 2020. Since then, they’ve drawn on their industry background, along with firsthand insight from their own sale, to help over 200 sellers and buyers come together in successful, seamless transactions.
Poe Group Advisors is the premier accounting practice intermediary firm in the industry, with offices headquartered in both Canada and the US. Selling or buying an accounting practice is one of life’s most significant ventures. Sellers want the right buyer, and buyers want the right practice. Poe Group Advisors excels at bringing the two together.
