Beyond the Suite Webinar – Simplify Accounting Workflows

Frustrated with the limitations of legacy systems like CCH, IRIS, or Caseware, but unsure about making a change? You’re not alone. This session tackles common concerns around standardisation, cost, and complexity, showing how a best-of-breed approach can simplify your workflow. Discover the ROI of switching to a cloud-based solution like Silverfin and hear how firms like yours have successfully made the transition.

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Well, good morning, everyone. Thank you for joining us. My name is Phil Hobden. I’m the UK product lead at Silverfin. Today, we’re discussing "Beyond the Suite: Is best of breed technology your firm’s future?" I’m joined by Sarah Gardner, partner at Shaw Gibbs, and Richard Sergeant, managing director of Principle Point Limited.

Sarah introduced herself as head of the Outsourcing division at Shaw Gibbs, a £40 million business with ten offices and around 400 team members. Richard works with software vendors building products for accountants and bookkeepers and is involved with AccountingWeb Intelligence, whose research will be referenced during the discussion.

Setting the Scene

Recently, a poll was conducted asking UK accountants whether their firms take a best-of-breed approach to technology. 93% of firms consider themselves to be doing so, but the execution often falls short. For example:

• ​E-signing software: 55% use DocuSign, 28% use a suite-embedded solution.
• ​Internal comms: 30% use Slack, 33% use a suite-embedded tool.
• ​Practice management: 25% use Karbon, 32% use a suite-embedded tool.

There’s a desire for best-of-breed, but execution is complex. Michael Ford commented, "Is it best of breed or best of need?" This distinction is explored throughout the session.

A poll was posed: Would you use the same technology in your firm if given a choice today?

Sarah responded that "best for need" is a more accurate description. If starting a firm again, she would choose most of their current technology, but cost is a significant factor. For a business of their size, a single full-service solution does not exist.

Challenges of Best-of-Breed

Sarah noted that a best-of-breed approach comes with challenges:

• ​Managing multiple vendors and contracts
• ​Multiple selection phases
• ​Negotiating contracts

However, larger firms can achieve ROI from these processes. For smaller firms, the burden is greater as the same person often makes decisions, implements, and manages technology.

Richard agreed that a single-house option is rare, even for smaller firms. Accountants must be client-led, adapting to client needs, which requires flexibility in technology. The "best of breed" term can be misleading; it’s really about what suits the practice’s needs. The number of software solutions firms feel they need has increased, raising questions about cost and value.

Cost Implications

Richard referenced AccountingWeb Intelligence research:

• ​The cost of servicing clients (technology as a % of revenue) has risen from 4% in 2010 to 7.5% in 2023.
• ​Larger firms hover around 7-9%, while smaller firms are more likely to exceed 10%.
• ​23% of firms pay 10% or more.

Larger firms can negotiate better prices and deploy more resources, while smaller firms accumulate costs without direct revenue benefit. The challenge is extracting value from technology investments.

Integration and Simplification

Sarah discussed the challenge of integrating acquired firms with different tech stacks. Firms that have adopted cloud technology are easier to integrate. Andrew in the chat asked if the multiple contract challenge means firms should reduce the number of apps and compromise.

Richard responded that most firms don’t buy unnecessary technology, but managing multiple suppliers is challenging, especially for small firms. Simplifying the tech stack may be necessary if promised integrations and automation aren’t realized.

Sarah added that her division has stripped back to a core stack (Dext, Xero, Silverfin) and is cautious about adding new apps until the core is embedded.

The State of Integrations

Richard noted that seamless integration between systems is still lacking. AccountingWeb Intelligence’s capacity challenge study found that better integrations and free flow of data are top requests from accountants. The technology isn’t fully delivering on these promises, often due to lack of commercial motivation among vendors.

Sarah agreed that integration is fundamental, especially for multi-office firms. While some vendors (like Silverfin) are improving, others, especially non-cloud vendors, lag behind. CRM and practice management integrations remain cumbersome.

Richard acknowledged improvements but emphasized that buyers must now demand more from vendors. If needs aren’t met, it may be time to consider changing providers.

Vendor Relationships and Change Management

Sarah highlighted the importance of strong vendor relationships, especially during large-scale rollouts. Accountancy practices are often led by accountants without formal change management training, making vendor support crucial.

Richard observed that vendors generally want to support clients but may focus more on sales and implementation than ongoing support. Reputation and peer recommendations are important in vendor selection. Change management is increasingly complex due to the proliferation of technology, making careful planning and empathetic vendor support essential.

Phil added that resource allocation is a challenge for vendors, especially smaller ones. Scaling customer success and support is critical for successful technology adoption.

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The discussion continued with further exploration of vendor support, change management, and the evolving landscape of accounting technology.