Does your tech stack make the most of AI?

Adam Turner

The article is relevant to members in Australia and New Zealand and was current at the time of publication.

Along with enhancing existing functionality and addressing gaps, an accounting firm’s technology stack rebuild needs to look to the future.

Leveraging new technology to enhance services and deliver them more efficiently is driving a tech stack rebuild at Melbourne accounting and advisory firm Liston Newton Advisory.

The practice’s tech stack is a combination of divisional-specific and firm-wide applications based around Xero Practice Manager and Microsoft Office. 

It incorporates specialist tools like Adobe’s e-signature for digital signatures, Business Fitness for workpapers, SharePoint for document management, Class for superannuation administration, CAS 360 for corporate compliance, Acis for legal documents and ATOmate for integrating with the tax office.

Evaluating AI

While looking for ways to better leverage these tools, the firm is also evaluating advancements in AI, both as standalone services and built into existing business tools such as Microsoft Office and Adobe Acrobat, says Liston Newton Advisory's Group CEO, Peter Antonius. 

"We don't fear AI, we're looking at ways that we can enhance and better deliver services, and AI can certainly play a role," Antonius says. “Part of the challenge is deciding the best AI to use in different situations, and whether we develop some of our own AI solutions internally.”

“There are also obviously privacy and security concerns to address, when it comes to how AI interacts with our sensitive data.”

Along with embracing new technology like AI, the accounting firm is also looking to manage costs and boost interconnectedness between its five divisions.

“It’s important to take a holistic and systematic approach to reviewing your technology stack, with a focus on business requirements and continuous improvement,” Antonius says. 

“As a result, our tech stack is evolving rather than being completely rebuilt, focusing on ensuring we’re getting the most out of our existing systems, improving interconnectedness and identifying gaps.”

Xero Practice Manager acts as Liston Newton’s “single source of truth”, however, due to its limitations in connecting with other software utilised across the five divisions, the firm is considering adding a dedicated customer relationship management platform to its tech stack.

Appoint a project champion

When making changes of such magnitude, one key to success is appointing a project champion to look at the big picture, document business requirements and avoid hasty decisions.

“My advice is don’t rush a tech stack rebuild,” Antonius says. “It’s easy to get distracted by the first shiny thing you see, but you need to do your due diligence.” 

“This is where a project champion can really make a difference, someone who creates a business case, presents it to the board and then manages the implementation to ensure the project delivers on its promises.”

When it comes to changing customer-facing elements of the tech stack, such as Liston Newton’s recent adoption of Rechargly for managing client disbursements and subscriptions, Antonius says clear communication and change management are critical.

“When a tech stack change impacts how you engage with your clients, you really need to bring them along on the journey, or you risk damaging that relationship,” he says.

Clients take note

Many Australian accounting firms act as tech enablers for their clients, according to market research agency Agile Market Intelligence. Along with boosting their clients’ productivity, encouraging them to adopt the same tools streamlines interactions and strengthens the relationship.

Yet it can be difficult for accountants to lead the way when the same research found that 49 per cent of accounting firms have not adopted new technology in the last five years.

Rather than viewing a tech stack rebuild as a chore, accounting firms should see it as an opportunity, says Alan FitzGerald, Founder of IT consultancy Practice Connections Advisory, which specialises in helping accounting firms.

One common mistake of accounting firms is failing to recognise the full breadth of features built into their existing tools, before looking further afield. Another is customising new tools in an attempt to replicate old processes, or unnecessarily writing their own software, rather than taking the opportunity to modernise operations on a standardised platform.

“One of the most common statements I hear is ‘we’re different to other firms’,” FitzGerald says. “That might be true in terms of aspects like customer engagement, but probably not in terms of business processes – especially when many outputs are standardised to meet the requirements of ASIC and the ATO.” 

“There’s no one-size-fits-all solution when it comes to an accounting tech stack, but don’t try to reinvent the wheel – especially when customisations make everything more difficult and expensive to manage and upgrade.” 

Instead of striving to maintain the status quo, a tech stack rebuild needs to look to the future to empower accounting firms to offer new services and enter new markets. A modern tech stack also makes it easier for firms to attract and retain talent, especially younger professionals who expect to work with current platforms.

“At the end of the day, a tech stack rebuild is not just about becoming more efficient or curbing costs,” FitzGerald says. “It’s really about equipping your accounting firm to thrive and meet the challenges that lie ahead.”