You know the way Captain America needs his shield and Thor needs his hammer? All superheroes – including accountants – need the right tools to get the job done. Nobody’s balancing books with a quill and ledger anymore. Thanks to the internet and smart programming, there’s a suite of software for accountants that’s been designed to make your life easier.
But with so many software options available, how can you choose the best software for your firm’s unique needs? Let’s explore the must-have software for accountants in today’s fast-paced accounting industry.
The evolution of software for accountants
The first accounting software emerged in the 1970s, but it wasn’t until Xero launched in the mid 2000s that cloud accounting systems really kicked off and changed the game on a global level.
Back in the day, accounting involved heaps of paperwork, where everything (yes, really everything – wages, forecasting, you name it) was calculated manually. Fast forward to the past couple of decades, where calculators and now cloud accounting software has swooped in, accountants’ workdays have been revolutionised into more streamlined, efficient, and precise operations.
Why accountants need specialised software
Accounting work involves a lot of complex tasks, regulatory compliance, detailed calculations, and fine-tuned reporting. That’s why the use of more specialised tools is the key to effectively meeting your firm’s unique demands.
Before all else, make sure you assess your firm’s specific needs before committing to anything. Write out a list of the products and features you’d benefit from the most and use it as a guide throughout your conquest for the right software.
1. Enhancing efficiency and accuracy
Specialised software can automate mind-numbing tasks, reduce errors, and save you hours of time. For example, using an onboarding tool can cut down on the admin work involved to take on new clients. It does this by making AML work faster with electronic ID checks and risk assessment checklists, automating emails for the likes of professional clearance and letters of engagement, and chasing up clients for records. This means you can focus on what really matters – providing value to your clients.
2. Staying compliant with regulations
Compliance is a huge part of your job, and regulations are always evolving. Luckily, software now comes with built-in compliance checks, helping you stay up to date with regulations.
For example, our cloud payroll software, BrightPay, automatically checks employees’ eligibility for Auto Enrolment, and notifies you when an employee need to be re-enrolled. This reduces the risk of making a payroll-related error, while ensuring your clients remain compliant with HMRC, The Pension’s Regulator, and other regulatory bodies.
3. Data security and accessibility
Gone are the days of storing sensitive financial data in filing cabinets. Modern software has robust data security features that protect client data from unauthorised access.
An example of this can be seen with the likes of encryption, user restrictions, and data backups. Cloud-based solutions also ensure that you, your team and your clients can access the data you need from anytime, anywhere. That way, you’re providing them with more flexibility and convenience without compromising security.
Software features accountants need
When selecting the appropriate software for your firm, you’ve got to consider the features that will best support your work and your team. Here are some of the most common must-have features in software for accountants.
1. Automation
Automating repetitive tasks like distributing payslips, extracting receipt data, and sending invoices can save your firm a significant amount of time (while reducing errors and the consequences that can come from them).
2. Cloud access
With cloud software, you can access your work from anywhere – usually from any device, 24/7. Another perk is that it’s much easier to collaborate with colleagues.
For example, in our own cloud payroll software, BrightPay, multiple team members can work on the same employer file together, with changes made in real time. No more having to wait until someone’s finished on a file or kicking them out in the middle of their work. Collaboration is effortless, regardless of your team’s location.
3. User-friendly interface
Clunky looking software getting you down? It’s 2024, and user-friendly interfaces are a must. You (hopefully) don’t use a Nokia from the 90s for your primary phone, and instead use a smartphone that comes with the likes of WhatsApp and YouTube, so why treat your firm’s tech stack any different?
The best software for accountants should be intuitive and easy to use, allowing you to perform difficult and admin-heavy tasks without a steep learning curve. So, keep an eye out for software that offers a clear and simplified dashboard, contrasting colours for optimal visibility, and easy navigation options.
4. Smart integrations with other software
Smart integrations are the cream filling to your firm’s tech stack. They cut down on wasted time, contribute towards a more unified working space, and ensure that data across all platforms is correct and compliant. It is no wonder that a survey we conducted found that 65% of firms want enhanced integration in their tech stack.
At Bright, we’ve got a never-ending list of integrations with industry-leading software like Xero, QuickBooks and Sage. Many of our own software integrate with one other too, with a roadmap paved out to become a one-stop shop for accountants across the UK and Ireland.
5. Scalability
Your software should be able to grow with your firm, not hold it back with outdated processes. Look for solutions that don’t dim your sparkle the more you succeed. This includes the likes of unlimited users, importing big chunks of data, and delegated tailored workflows to break down heavier tasks as your to-do list expands.
6. Security
Security should be at the top of your list. In a recent survey we conducted, 49% of firms noted that they want improved security measures. If your clients’ data is safe from harm’s way, you’re already halfway to success. Prioritise features like multi-factor authentication, automatic updates, encryption, user permissions, and GDPR-compliance to ensure your clients’ data is protected against unauthorised access.
Essential software for accountants
So, with all of that covered, what are the best software solutions out there? Let’s narrow it down to the top three software for accountants.
1. Cloud payroll software
Cloud payroll software offers so many extra goodies compared to its desktop counterpart. For example, in BrightPay’s cloud version, there’s a bunch of additional features you can access with the cloud that isn’t available in the standalone desktop version.
With BrightPay cloud, you can automatically distribute payslips (which means no more paper or printer ink costs), multiple people can work in the same employer file at the same time, you can work on the payroll from your laptop or even your tablet from any location, and much more!
2. Cloud practice management software
Cloud accounting practice software helps you manage your practice more efficiently by automating admin tasks, tracking client activity, and keeping tabs on your firm’s time.
In our own practice management software, BrightManager, we’ve got automatic record chasing – so if a client has missed a tax payment or forgets to send over a letter of engagement, the system can chase them until you get what you need.
It also comes with a client timeline that tracks every touch point your clients have with you. So, whether they’ve opened an email or signed a form, it’s all tracked and timestamped for your convenience.
We’ve also got a time tracking tool that lets you know how long you’re spending on each client and each task. This lets you see who your most and least profitable clients are, and helps you make more strategic decisions going forward.
And because it’s in the cloud, you and your team can all work together at the same time, from just the one tab on your browser.
3. Cloud tax and accounts software
Tax compliance can be complex, but cloud tax and accounts software simplifies it with direct tax return submissions, real-time updates, and compliance with the latest regulations. Turns out busy season doesn’t have to be as hectic as it once was!
In our own tax software, BrightTax, you can submit returns to HMRC and accounts to Companies House directly through the software. It’s also MTD for VAT compliant, so you can stick to these rules quickly and effortlessly.
Discover the best software for accountants
Bright was created in 2021 to unify several best-in-class solutions that all shared one crucial thing in common – world-class customer support that accountants and bookkeepers can depend on.
In a survey we carried out this year, we found that 76% of firms say that quality ongoing customer support is important, 55% that flexibility to scale is important, and 45% that robust data protection measures are important. Choosing a software provider that prioiritises all these factors, like Bright, makes your tech stack more streamlined, scalable, and most of all, secure for the years to come.