Strategic mergers, or the combining of two or more accounting firms, have been a mainstay of economic growth and have become increasingly more common over the past decade. Year after year, accounting firms around the country focus heavily on merger and acquisition activity to drive their accounting firm’s overall growth. Another additional annual occurrence is the introduction of new practice management software that can make an accounting firm more streamlined and efficient. By placing these two reoccurring phenomena together, practice management software can be used to make mergers less painful and make the entire process easier.

Merger Growth Continues Among Accounting Firms

In the accounting world, mergers are a natural part of the firm life cycle. In fact, according to the 2016 Rosenberg Survey, merger growth accounted for 28% of all total growth in accounting firm’s over $2M in annual revenue in 2016. Deloitte US stated that M&A activity has continued to accelerate in 2018 with technology planted firmly in the driver’s seat. In 2017, M&A deal volume hit $3.7 trillion globally, nearly the same as the year before, but with tax reform the US, increasing stock market performance, low-interest rates, and a larger appetite for digital technologies, merger deals should exceed this once 2018 merger activity is all accounted for.

Capabilities of Modern Practice Management Software

Practice Management Software designed for accounting firms will have several features and advantages which abound in your typical CRM software. These features may include digital client files, time tracking, document assembly, information sharing, and the ability to customize the software suite based on your individual firm’s needs. With a well-designed practice management software program, your accounting firm will be able to ensure exceptional management and that clients are properly served to lead to increasing profits and healthy receipts. Because all accounting practices are different, your firm may not need the entire spectrum of practice management tools, your firm most likely needs at least a few of the capabilities.

How Practice Management Software Makes Mergers Less Painful

In the Deloitte M&A trends 2018 report nearly two-thirds of respondents said they used technology tools like practice management software to reduce conflicts, costs, and time; a major factor in ensuring the success of a merger deal. Additionally, because software tools help expand customer bases, add to products or services, and help towards talent acquisition strategies, most accounting firms rely on cloud-based practice management software just to arrive at the beginning of a merger deal discussion.

Practice Management Software Solutions

If your accounting firm still relies on excel spreadsheets to integrate financial information from an acquired accounting firm, you’re most likely spending too much time and effort on this and this can also be extremely error prone. Instead, by utilizing a practice management software that can facilitate planning, scheduling, and ongoing performance monitoring, you’ll be establishing an accounting firm that has the capabilities to quickly and painlessly integrate another firm. Cloud Practice Accounting’s enterprise solutions offer the ability to integrate new organizations, as well as, visualize data across specific companies making it simple to orchestrate activities across different entities and locations. Contact our sales team today for a free product demo of Cloud Practice Accounting to find out how you can transform your practice and make increase growth a much simpler and streamlined process.