Many firms are making changes to their time and billing system.  In some cases their current DOS based applications are not year 2000 compliant. In another case these vintage tools conflict with other Windows-based software packages.  While in other instances, firms want to make these changes, in order to gather information both abundantly and quickly.

Usually the process of changing practice management systems moves through several stages.  The available packages are reviewed and a package is picked based on the perceived superiority of benefits.  Then the old system’s information is converted.  The firm’s staff are then trained and the use of the new system commences. 

Consequently, an adequate analysis of the accounting firm’s information needs is missing in this approach.  The approach presently results in a faster version of the firm’s old system, which produces the same old information. The firm, therefore, benefits from the new system, but not to the system’s full extent.  The key, thence, is to not just change the time and billing tool, but to change the firm’s practice management processes.

Most traditional practice management systems focus on the accumulation of information in a cyclical manner.  Time and expense information accumulated in an after-the-fact manner: sometimes daily, but often in longer, intermittent intervals through a manual timesheet approach.  Billing is performed on a monthly or semi-monthly basis using paper billing sheets.  Reports are often generated at the end of a cycle and focus on summaries of information.  Therefore, these reports typically do not address issues that require immediate decisions. 

You can generate more decisive reports by following these simple procedures.  First of all, focus on the dollars.  Make a key element of any time and billing change process changes that speed up the collection of time information.  Firms obtain money by billing for client services.  The more timely and the more detailed the information about time spent, the better chance the biller has of understanding and valuing the services performed.  Require the contemporaneous, on-screen entry of time and expense information.  Select a system that has remote time entry capabilities.  Users should be able to collect time information outside of the office, as well as while in the office.

Still focusing on the dollars, bill frequently.  Utility companies and CPAs are the only businesses that bill at the end of a period.  In an “event-based” billing environment, most invoices are created as soon as the work is completed.  Billers have the best knowledge about the service performed immediately after the service is completed.  Clients, therefore, will have a better understanding of the services performed.  They will pay sooner and the firm’s investment in WIP reduces.

Old practice management information is not worth a great deal today.  The current crop of Windows based applications sport open database design that allows firms to build on-demand practice information systems.  Determine the type of information you need to make day-to-day decisions.  Which work is not being completed in a timely fashion?  Which clients are delinquent?  Which staff member has work overload or does not have work?  If you get information about these conditions once they occur, you can act to prevent the problems from getting worse.  In many cases, a focus on the information needs of specific firm members is worth more than firm-level information.

The bottom line here is that using the new practice management tools in the same manner, as your old system just doesn’t cut it.  Change your processes to take advantage of the capabilities of the new practice management software tools.