Tax & Accounting29 April, 2022

The power of KPIs: how to track your accountancy practice’s metrics of success

Accountancy practice management software has come a long way. Today, features like automated billing and reconciliations are easily integrated into the day-to-day workflows of practices across the UK.

However, it’s often hard to look beyond improving performance in day-to-day operations. Amid Brexit, the COVID-19 pandemic and other disruptions, accountancy practices and their clients are dealing with an unpredictable economic landscape. Future business planning can appear daunting. However, technology can support accountancy practices (and their clients) in making informed business decisions and planning for the future.

One key example of how practices can leverage technology is defining and easily tracking Key Performance Indicators (KPIs). This gives practices greater accuracy and closer control of performance tracking, as well as deeper insights that will inform strategic growth plans. Moreover, the best tracking software includes automated alerts that inform users when they have reached a particular milestone in real time. This provides practices with optimal reporting efficiency. 

Saving time

For several decades, business technology platforms have enabled practices to track performance metrics that they have customised themselves. Doing so highlights areas that qualify for improvement, and underpins strategic planning.

Contemporary technology can make setting up KPIs faster and easier for accountancy practices than ever before. This is vital today. The current business landscape demands that firms assess and amend KPIs more frequently, based on fresh market variables. Furthermore, we live in a faster-moving world and it becomes ever more important to have a data stream that is updated in real time.

KPIs such as client retention rate and business time-to-recovery have become increasingly prominent performance indicators in the past year. If clunky technology makes KPI management difficult, practices have less time and insight to plan future growth.

Reducing risk

Leveraging the right technology makes it far easier to track KPIs and report on them. This is fundamental in minimising risk. For example, if a KPI is set to track and escalate debt filtered by overdue dates, the ability to easily set alerts and automatically generate reports is critical to practice performance management.  

Some practices are manually running monthly reports to measure KPIs. Others are running real-time reporting engines. This latter solution allows practices to review essential data at any time, covering both performance management and compliance requirements. They can do so remotely or on-premise.

This means that firms can assess issues before they become problems, and thus act proactively. Real-time reporting is a true asset in building a future-fit practice.

The proof is in the practice

Numerous Wolters Kluwer Tax & Accounting UK customers have been using CCH KPI Monitoring for several years now. CCH KPI Monitoring provides a real-time reporting and notification engine, customisable to the KPIs you have identified. This means your practice would receive automated alerts when you reach an important milestone, and can therefore adapt and inform your growth strategy accordingly. In short, it monitors your practice so you don’t have to.

Our employees work side by side with our customers to create and manage these solutions, driven by a deep understanding of their needs and addressing the rapid changes in their environment. To find out more about CCH KPI Monitoring, get in touch by completing the form below.

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