Introduction
“Just tax preparers?” We smile when we hear that.
When most people think “accountant,” they picture someone buried in tax forms during tax season. What they don’t see is how accounting firms often serve as trusted advisors across nearly every aspect of financial decision-making. From forensic investigations that unravel financial mysteries to sophisticated business valuations that guide major transactions, our work extends into exciting territory that demands both technical mastery and strategic thinking. This diverse portfolio of services creates a vibrant — though admittedly complex — practice to manage.
Many firms have chosen to specialize, focusing expertise on specific niches like tax planning and compliance, audit and assurance, or outsourced CFO services. This specialization allows for deeper expertise and more targeted client relationships. Yet we’ve learned that even these more narrowly focused practices aren’t immune to workflow challenges.
We’ve watched those who specialize in tax preparation manage hundreds of returns with unique circumstances during busy season, while audit-focused peers coordinate multiple engagement teams across overlapping deadlines. Those in estate planning and business valuation wrestle with complex analyses and time-sensitive deliverables, and even bookkeeping specialists can be overwhelmed by month-end closes for dozens of clients.
Whether your firm offers comprehensive services or specialized expertise, the sheer volume of work and the intricate nature of client needs can quickly test even the most organized among us. We’ve been there, and that’s precisely why effective project management becomes essential.
What Is Project Management for Accountants?
Project management in accounting firms is our systematic approach to planning, executing, and overseeing engagements and initiatives. It involves coordinating team members, allocating resources, setting realistic timelines, managing client expectations, and ensuring deliverables meet quality standards — all while staying within budget constraints.
Why is Project Management Important for Accounting and CPA Firms?
Success in any accounting project requires organization, time management, and effective communication. The engagements we handle daily can take weeks, months, or even years to complete, with layers of complexity that require careful navigation.
For these projects to succeed, we need strong project management skills — a core competency for any professional firm — and accounting practice management software to support our teams. Let’s explore the specific benefits that successful project management brings to firms like yours.
7 Benefits of Successful Project Management in Accounting
Benefit #1: Better Resource Allocation
With effective project management, we gain control over our resources. We can determine which projects need immediate attention and precisely allocate the right resources to each task. This approach eliminates unexpected surprises and creates a more predictable workflow for everyone involved.
Benefit #2: Cost Reduction Through Efficiency and Productivity Improvements
We’ve discovered that implementing effective project management practices significantly reduces costs by boosting both efficiency and productivity. By streamlining workflows and optimizing resource allocation, we accomplish more with less. For instance, assigning our most skilled professionals to complex tasks ensures they’re completed accurately and swiftly.
Benefit #3: Increased Profitability
Project management helps our firms achieve better financial results by maximizing resource utilization and gaining competitive advantages. With more productive processes, we accelerate project timelines, handling higher volumes of work without increasing overhead. The enhanced efficiency translates directly into improved financial performance for your practice.
Benefit #4: Data to Improve Marketing Strategy
Having the right project management approach provides valuable data that helps determine which projects deserve priority. This insight leads to more effective marketing strategies, generating better and more consistent leads that result in more meaningful client relationships.
Benefit #5: Increased Client and Staff Satisfaction
Delivering a higher level of client and staff satisfaction is something we’d all love to do. With proper project management, we produce higher quality work that meets client requirements while ensuring our staff completes projects on time, creating a positive environment that fosters productivity and job satisfaction.
Benefit #6: Improved Employee and Team Competencies
One of the unexpected benefits we discovered is that implementing successful project management serves as a catalyst for enhancing individual and collective skills. By providing a structured framework for task allocation, progress tracking, and collaboration, we foster improved communication, accountability, and team bonding. As our teams become more adept at project management, they develop critical soft skills like time management and prioritization.
Benefit #7: Improved Organizational Performance
The cumulative effect of successful project management is significantly improved organizational performance. By optimizing resource allocation, enhancing efficiency, and reducing costs, we boost profitability and competitive edge.
The improved marketing strategies derived from project data result in better lead generation and client acquisition. Meanwhile, increased client and staff satisfaction fosters loyalty and reduces turnover. As our teams develop stronger competencies and collaboration skills, the overall quality of work improves.
This synergy of benefits — from financial gains to enhanced human capital — propels accounting firms toward excellence, enabling us to handle more complex projects, attract high-value clients, and establish leadership in the industry.
While the benefits of project management are clear, implementing it effectively isn’t without challenges. Let’s examine some common hurdles and how to overcome them.
5 Common Challenges in Accounting Project Management — And How to Overcome Them
As professionals who’ve managed countless projects, we understand the pressure of staying on top of everything. From juggling multiple tasks simultaneously to managing expectations, solving problems, and maintaining personal schedules — we know that life in an accounting firm isn’t always easy.
Whether you’re managing your firm or implementing directives, identifying and solving challenges together is crucial.
Challenge #1: Uncertainty with Project Progress
One of the main challenges we’ve encountered is progress uncertainty. Without a real-time picture of project status, it’s difficult to determine necessary actions to keep projects on track or identify minor issues before they become major problems. How can we deliver on time when we’re uncertain about current status?
Solution: Find the right project management solution to help your team manage tasks and track progress efficiently. The visibility gained through proper tracking tools transforms project management from guesswork to precision.
Challenge #2: Scheduling Complexity
Coordinating with a team, particularly a large one, to compile tasks and manage project timelines presents significant complexity. Obtaining clarity on what needs to be done to keep projects on track requires thoughtful review and planning.
Solution: Leverage the workflow management capabilities within project management software. With real-time visibility into team capacity and dependency tracking, the team gains access to a single source of truth for schedules and deadlines, eliminating confusion and creating accountability.
Challenge #3: Team Communication Issues
Without proper project management tools, we’ve seen how communication quickly breaks down. Team members work from different information, updates get lost in email threads, and critical client requirements fall through the cracks. When staff members can’t easily see what others are working on, they make assumptions that lead to duplicated work or missed deadlines. Status updates become time-consuming and inconsistent, while clients grow frustrated with conflicting messages from different team members.
Solution: Use project management tools to create a central communication hub where everyone accesses the same up-to-date information. Team members can see shared project goals, client expectations, and their specific assigned tasks in one place. These tools facilitate real-time updates, document sharing, and conversation tracking that eliminate confusion.
Challenge #4: Scope Creep
This is one of the most common challenges we face in project management. As accounting projects progress, scope creep occurs due to numerous factors: unclear initial requirements, poor stakeholder communication, changing regulations, client requests for additional deliverables, lack of formal change control processes, underestimation of project complexity, and pressure to maintain good client relationships. The result is increased workload, extended timelines, and potential budget overruns.
Solution: Define clear project boundaries, implement change control processes, educate clients on scope implications, use project management software, document all communications, include contingencies in plans, learn to decline unreasonable requests, conduct thorough initial assessments, and use phased approaches for complex projects.
Challenge #5: Unclear Expectations
Blurred expectations can come from various sources — clients, team members, or even ourselves. A particular challenge arises when clients don’t acknowledge that their expectations differ from what was initially agreed upon. Even when we recognize the issue and attempt to fix it, we may struggle to do so effectively or on time.
Solution: Confirm expectations, clarify assumptions, and simplify requirements for all parties before beginning any project. This approach not only helps manage expectations and simplifies task management but also improves overall communication.
Now that we’ve discussed the benefits and challenges of project management in accounting, let’s explore a powerful tool that can help address these issues: accounting practice management software.
What Is Accounting Practice Management Software?
As a firm founded by accounting professionals who have experienced the evolution of practice management, we understand the critical distinction between general project management software and solutions designed specifically for accounting firms.
Accounting practice management software is a specialized solution designed to streamline and optimize accounting firm operations, addressing our unique needs and workflows.
Key Components Typically Include:
- Client management and CRM functionality
- Time and billing tracking specific to accounting services
- Document management for tax returns, audit papers, etc.
- Workflow tracking for tax seasons, audit cycles, etc.
- Integration with tax and accounting software
- Deadline tracking for tax filings and regulatory submissions
- Performance analytics relevant to accounting firm metrics
Accounting Practice Management Software Offers Unique Advantages
While both project management and practice management software aim to improve efficiency and organization, accounting practice management software provides a more comprehensive solution for our specific needs, incorporating elements of project management alongside industry-specific features.
Key Advantages of Accounting Practice Management Solutions
- Specialization: Accounting practice management software is highly specialized for our operations, while general project management software is flexible but less tailored.
- Client focus: Practice management solutions typically include robust client management features, which may be less developed in other project management tools.
- Regulatory compliance: Our software often includes features to ensure compliance with accounting professional standards and regulations, which most project management software lacks.
- Billing and time tracking: Accounting practice software usually has sophisticated time tracking and billing features specific to our profession, while general project management software may have more basic or no billing capabilities.
- Workflow templates: Our solutions often include pre-built templates for common accounting workflows (e.g., tax preparation, audit processes), whereas project management solutions require highly customized setup.
- Integration: Practice management software typically integrates with tax and accounting software, while general project management tools tend to integrate with a broader range of business tools.
- Reporting: Our software provides reports tailored to firm management (e.g., client realization, staff utilization), while project management software usually provides generic project performance metrics.
In summary, accounting practice management software is a type of project management software built specifically for firms like yours, while general project management software serves a wider range of industries. This distinction explains why certain features are essential when researching project management solutions for accountants.
What To Consider When Choosing a Project Management Software for Accountants
When researching project management software for accounting engagements, you’ll quickly discover long lists of features to evaluate. How do you know which ones are most critical? In our experience working with hundreds of firms, the answer depends on several factors.
What mix of tax, audit, and consulting engagements are you managing? What volume of projects does your firm handle? What are your staffing levels? These factors will influence the best choice for your specific needs.
Essential Features of Project Management Software for Accountants
Regardless of your firm’s unique circumstances, there are fundamental features to consider. Make sure any solution you’re evaluating includes — at minimum — the following:
- Basic task/project management features: These are fundamental to organizing and tracking the progress of accounting engagements. They allow us to break down complex projects like audits or tax preparations into manageable tasks, assign responsibilities, and monitor deadlines.
- Time tracking and billing capabilities: Accurate time tracking is critical in our firms where billable hours are often the basis for revenue. This feature ensures that all work is properly accounted for and billed, improving profitability and providing transparency to clients.
- Document management: Our engagements involve handling numerous sensitive documents. A robust document management system helps maintain organization, ensures version control, and facilitates easy retrieval of information when needed, all while maintaining security and confidentiality.
- Client portal with client engagement tools: This feature enhances client communication and collaboration. It provides a secure platform for sharing documents, obtaining approvals, and keeping clients informed about the progress of their engagements, which is crucial for maintaining strong client relationships.
- Reporting and analytics: These tools help us gain insights into operations, such as staff utilization rates, project profitability, and overall firm performance. This data is essential for making informed business decisions and identifying areas for improvement.
- Integration with other business solutions: We typically use various specialized software for different functions (e.g., tax preparation, audit tools). Integration capabilities ensure smooth data flow between systems, reducing manual data entry and the potential for errors.
With these essential features in mind, let’s compare some of the top project management tools available for accounting firms.
Best Project Management Software for Accounting Firms
Choosing the right project management tool can feel overwhelming. Each solution offers a unique set of features, pricing structures, and specializations that cater to different needs within the accounting industry.
In this section, we’ll compare some of the top options, highlighting key features, pros, cons, and pricing. This comparison will help you make an informed decision based on your firm’s specific requirements, size, and budget.
Keep in mind that software providers regularly update their features and pricing structures, so it’s worth confirming the latest information before making a final decision.
Firm360
Firm360 is an accounting practice management software built by accountants who understand the unique challenges we face. It’s best suited for firms that need accounting-specific features alongside predictable pricing and an established track record of efficiency gains.
Key Features:
- Document management
- Client management and secure client portal
- Time and billing
- Basic and advanced reporting options
- Payment collections via credit card and ACH
- Dedicated customer support
- Automated billing features
- E-signature
- Project management*
- Advanced integrations such as Zapier and Open API**
- Dedicated customer success manager**
*Available beginning with the Standard plan **Available with the Premium plan
Pros:
- Automation capabilities
- Customization options
- E-signature integration
- Robust set of accounting-specific features
- Bi-weekly feature updates
- Transparent pricing
- Strong customer service reputation
- Built by and for accountants
Cons:
- No advanced IRS integration tools
- May have a steeper learning curve for some of the advanced features
Pricing:
- Basic Plan: $49/month per user (annual billing)
- Standard Plan: $79/month per user with a 3 user minimum (annual billing)
- Premium Plan: $99/month with a 3 user minimum (annual billing)
Canopy
Canopy is an accounting practice management tool best suited for tax-focused firms that need a feature-rich, customizable platform with options to add specific modules as their needs grow.
Key Features:
- Tax-specific features such as IRS transcript retrieval
- Client portal
- Document management
- Workflow management
- Time and billing
- AI insights
Pros:
- IRS-integrated transcript access
- Modular pricing and flexibility
Cons:
- Pricing can get expensive
- Complex setup for small firms
Pricing:
- Client Engagement Platform: $150/month for unlimited users, covering basic client management and engagement features.
- Document Management: $36/user per month.
- Workflow Management: $31/user per month.
- Time and Billing: $22/user per month
Canopy prices by module rather than plan levels, making the pricing less straightforward than other solutions. The pricing starts at $150/month for the client engagement platform, plus an incremental cost of $89/user per month for the full suite. For the first user, the all-in price is $239 per month.
Asana
Asana is a project management tool that we’ve seen work well for small firms just getting started, though many outgrow it as their needs become more specialized.
Key Features:
- Workflow and project management
- Workflow automation
- Task dashboards
- Mobile app
- Comments, @mentions and notifications
- Reporting
- Team management
- Extensive template library (non-accounting specific)
Pros:
- Simple to set up new accounts and workflows
- Collaboration with commenting, proofing and file sharing
- Robust integrations with tools like Slack, Gmail, Google Docs, and Dropbox
- Free version available for small teams
Cons:
- Notifications are easy to lose in inbox
- Not specifically designed for accounting firms
- No two-way email sync integration
- Lack of CRM capabilities
- No direct time tracking or time budgeting
- No direct integration with accounting software
- No client portal
Pricing:
- Basic: $0/month per user
- Premium: $10.99/month per user (annual billing)
- Advanced: $24.99/month per user (annual billing)
- Enterprise: Pricing not listed publicly
Basecamp
Basecamp is a project management platform that we’ve found works well for smaller teams of entrepreneurs, freelancers, small businesses, and departments within large organizations.
Key Features:
- One-page ‘Home’ dashboard
- Task management
- Project timelines
- Document hub
- Chat and messaging
- Scheduling
- Reporting
Pros:
- ‘Home’ dashboard offers a centralized view for tasks, schedule, lists, and assignments
- Auto-reminders for tasks and messages
- Cloud-based
- Offers a free trial
Cons:
- Not specifically designed for accounting firms
- Limited project views
- No budgeting features
Pricing:
- Basic: $15/month per user (annual billing)
- Pro: $299/month with unlimited users (annual billing)
ClickUp
ClickUp is a project management software that’s best suited for teams that need highly-customizable workflows and reports, though we’ve found it requires significant adaptation to meet accounting-specific needs.
Key features:
- Workflow automation
- Real-time chat
- Project and task dashboards
- ClickUp AI for smart suggestions and email writing
- Templates
- Document hub
- Reporting, time-tracking, and analytics
Pros:
- Highly customizable
- Offers visualization tools for advanced project views
- Sends daily performance reports
- Integrates with tools like Slack, Harvest, Google Drive, and Outlook
- Cloud-based
- 24/7 live customer support
- Offers free trials
Cons:
- Doesn’t directly integrate with accounting software
- No built-in client portal
- Limited accounting templates
- Not accounting-specific
Pricing:
- Free: $0/month per user
- Unlimited: $7/month per user (annual billing)
- Business: $12/month per user (annual billing)
- Enterprise: Custom pricing
SmartSheet
SmartSheet is a project management tool that we’ve seen work well for large teams or organizations that need a highly customizable solution, though it typically requires significant time to set up and optimize for accounting-specific needs.
Key Features:
- Customizable project and task templates
- Resource management tools
- Automation features (alerts and reminders)
- Integration with various apps (Google Drive, Microsoft Office)
- Mobile app
Pros:
- Flexible platform that can be tailored to different organizational needs
- Robust reporting and analytics features
- Collaboration tools to promote team communication
- Reminiscent of spreadsheets, so may appeal to users transitioning from project management by Excel
Cons:
- Some users may find the interface overwhelming or difficult to navigate
- Pricing can be relatively expensive compared to other project management tools
- Not specifically designed for accounting firms
Pricing:
- Free trial available
- Pro: $7/month per user (annual billing)
- Business: $25/month per user (annual billing)
- Enterprise: Custom pricing
Trello
Trello is a general project management solution that we’ve seen effectively adapted for accounting practice management by solo practitioners or small bookkeeping startups.
Key Features:
- Workflow automation
- Workspace views (tables, calendars, etc.)
- Advanced checklists
- Templates available
- Custom fields
- Dashboard views
Pros:
- User-friendly
- Trello boards (similar to Kanban boards) help visualize work by status
- Integrates with common tools like Salesforce, Slack, and Google Drive
- Desktop and mobile apps
- Offers a free trial for Premium plans
Cons:
- Not accounting-specific
- No pre-built accounting templates
- Limited recurring work capabilities
- No automatic client reminders
- No direct email integration
- No CRM capabilities
- No native time tracking or time budgeting
- No direct accounting software integration
- No client portal
Pricing:
- Basic Free: $0/month per user
- Standard: $5/month per user (annual billing)
- Premium: $10/month per user (annual billing)
- Enterprise: Starts at $17.50/month per user (annual billing)
While understanding the features and benefits of the various software solutions is crucial, seeing real-world examples provides valuable insights. Let’s look at some case studies of accounting firms that have successfully implemented practice management software.
Success Stories
We’ve witnessed firsthand how firms supported with the right practice management tool recognize significant advantages.
Banks, Gray & Crumpler, PLLC was able to grow average revenue generated per employee by over 25%, add 20% more employees, realize a 50% productivity improvement, and gain much better visibility into their team’s project workload.
Spivey & Morton, CPA, PA realized improvements in productivity, project visibility, client communication, and remote work effectiveness.
Millikan CPAs & Advisors grew its team size by 50% while also increasing productivity and output of each team member, on top of implementing a highly effective method for secure communication with clients.
As these real-world examples illustrate, the right tool can transform an accounting firm’s operations and bottom line.
Conclusion
Effective project management isn’t just a nice-to-have for accounting firms — it’s a critical component of success.
From improving resource allocation and increasing profitability to enhancing client satisfaction and team competencies, the benefits of robust project management create opportunities for growth and excellence. While challenges exist, they can be overcome with the right strategies and tools.
By carefully considering your firm’s unique needs and choosing a project management solution that aligns with those requirements, you can elevate your firm’s performance, streamline operations, and ultimately deliver greater value to your clients. The right solution becomes not just a tool, but a partner in your firm’s continued success and growth.
