- Software automates process for signing up clients
- A firm can save $50k to $70k in admin positions
- Clients can create own fixed-fee packages online
The rule of one administrative assistant for every five accountants may be over for firms that automated the process of signing up clients.
“I want a firm just to have a practice manager to oversee it and no admin at all,” said Guy Pearson, CEO of cloud program Practice Ignition, which was recently selected for startup innovation program Advance. An accountant used Practice Ignition to select fixed-fee services for a client, send out an engagement letter and automatically add the services as tasks to a firm’s practice management software.
Practice Ignition was only compatible with cloud accounting company Xero’s practice management software Xero Practice Manager.
Practice Ignition replaced aspects of cloud-based quoting programs such as Quotient and Quote Roller with a more integrated approach, Pearson said. “Quotient is great at creating quotes but they’re not good at what happens next. We don’t have the prettiest proposals but they link to your back office, and that removes the admin cost from your practice,” he said.
A case study on Pearson’s 250-client accounting practice, Interactive Accounting, saw Practice Ignition remove the need for a full-time administration role worth $50,000 to $70,000 a year.
Once a partner’s time, opportunity costs, superannuation and other costs were calculated the savings were closer to $200,000, Pearson said.
Practice Ignition recently updated its user interface and added more customisation to fixed-fee services. A large engagement with training, set-up, conversion, bookkeeping and year-end accounting could be added to the one client proposal and automatically entered as separate jobs in Xero Practice Manager.
Clients could choose their own accounting packages on a firm’s website by using a Practice Ignition connector. The firm reviewed and approved the package once the client had made their selection and could track comments attached to the engagement letter.
The website connector helped accounting firms increase the conversion rates of website visitors into clients.
“If you have someone who comes back to you faster you’re more likely to buy something. We’re trying to enable accountants to do that,” Pearson said.
Image credit: Practice Ignition