{"id":28891,"date":"2025-12-12T08:39:47","date_gmt":"2025-12-12T15:39:47","guid":{"rendered":"https:\/\/universalaccountingschool.com\/?p=28891"},"modified":"2025-12-16T08:42:26","modified_gmt":"2025-12-16T15:42:26","slug":"building-an-accounting-firm-with-a-future-ready-tech-stack","status":"publish","type":"post","link":"https:\/\/universalaccountingschool.com\/building-an-accounting-firm-with-a-future-ready-tech-stack\/","title":{"rendered":"Building an Accounting Firm with a Future-Ready Tech Stack"},"content":{"rendered":"\n

In today\u2019s accounting landscape, technology has moved far beyond \u201cnice to have.\u201d It is the backbone of a profitable, scalable, client-centric firm. On the Building the Premier Accounting Firm<\/em> podcast, host Roger Knecht<\/strong> and long-time accounting-technology authority Randy Johnston<\/strong> broke down how firms should think about building modern tech stacks\u2014and what\u2019s coming next that will reshape the profession entirely.<\/p>\n\n\n\n

Below is a reframed look at their insights\u2014not as a recap of the episode, but as a guide to designing a tech-forward accounting practice.<\/p>\n\n\n\n

\n\n\n\n

Start With Strategy, Not Software<\/h2>\n\n\n\n

Knecht emphasized on the podcast that building a tech stack begins with defining the work you want the firm to do, not with picking tools. Johnston echoed this: your service model<\/strong> determines everything\u2014from the core accounting platform to the advisory, workflow, and AI tools that layer on top of it.<\/p>\n\n\n\n

Johnston noted that a fully developed CAS practice can offer \u201caround 23 services,\u201d but firms shouldn\u2019t start there. Both he and Knecht stressed that leading firms typically anchor around one to three core services<\/strong>\u2014such as payroll, bookkeeping, dashboards, or bill pay\u2014and expand strategically. This approach mirrors banks\u2019 use of \u201cstickiness\u201d through bundled services.<\/p>\n\n\n\n

Once the service model is clear, firms can choose software that supports those goals, instead of the other way around.<\/p>\n\n\n\n

\n\n\n\n

Building a Modern CAS & Advisory Stack<\/h2>\n\n\n\n

Johnston shared on the podcast that he now prefers the term Client Accounting and Advisory Services (CAAS)<\/strong>, because true advisory requires more than reporting. He described three tiers firms should plan around:<\/p>\n\n\n\n

    \n
  1. Core bookkeeping<\/strong><\/li>\n\n\n\n
  2. Controllership<\/strong><\/li>\n\n\n\n
  3. CFO-level advisory<\/strong><\/li>\n<\/ol>\n\n\n\n

    Different tools support each tier, and Knecht pointed out that CAS staff often identify advisory opportunities first\u2014meaning the tech you choose must support both accurate accounting and meaningful insights.<\/p>\n\n\n\n

    Core Accounting Platforms<\/h3>\n\n\n\n

    Johnston highlighted several platform types and when they fit:<\/p>\n\n\n\n

      \n
    • QBO\/Xero ecosystems<\/strong> \u2192 flexible, widely supported<\/li>\n\n\n\n
    • Sage Intacct \/ Zoho Books<\/strong> \u2192 mid-market or multi-entity needs<\/li>\n\n\n\n
    • Aplos<\/strong> \u2192 nonprofits<\/li>\n\n\n\n
    • Accounting Power<\/strong> \u2192 integrated GL + document management + bill pay<\/li>\n<\/ul>\n\n\n\n

      His guidance: choose the platform based on your client base and services<\/strong>, and avoid getting locked into single-vendor ecosystems unless it clearly improves efficiency.<\/p>\n\n\n\n

      Advisory-Centric Tools<\/h3>\n\n\n\n

      Knecht asked Johnston about tools specialized for advisory, and Johnston pointed to 4ImpactData<\/strong> as an example of software built around true business modeling rather than basic dashboards. It integrates with QBO and generates Power BI dashboards tied to transaction-level detail. It also incorporates the DuPont model and AI-driven recommendations\u2014an example of where advisory technology is headed.<\/p>\n\n\n\n

      \n\n\n\n

      Workflow, Management, and Document Automation<\/h2>\n\n\n\n

      On the podcast, Knecht noted that workflow is one of the biggest pain points for firms. Johnston agreed\u2014and outlined a clear structure for tech selection:<\/p>\n\n\n\n

      Workflow Management<\/h3>\n\n\n\n

      Top options he cited include:<\/p>\n\n\n\n

        \n
      • Keeper<\/strong><\/li>\n\n\n\n
      • Jetpack Workflow<\/strong><\/li>\n\n\n\n
      • Carbon<\/strong><\/li>\n\n\n\n
      • Aero Workflow<\/strong><\/li>\n<\/ul>\n\n\n\n

        These tools handle recurring work, deadlines, delegation, and client deliverables\u2014essential for a scalable CAS operation.<\/p>\n\n\n\n

        Document Management & Client Intake<\/h3>\n\n\n\n

        Johnston recommended separating document storage<\/strong>, gathering<\/strong>, and extraction<\/strong>:<\/p>\n\n\n\n

          \n
        • Storage<\/strong>: SmartVault, Box, LedgerDocs<\/li>\n\n\n\n
        • Gathering<\/strong>: Liscio, DexPrepare (ReceiptBank), HubDoc, Entryless<\/li>\n\n\n\n
        • Extraction<\/strong>: MakersHub.ai (especially for construction, healthcare, restaurants requiring line-item classification)<\/li>\n<\/ul>\n\n\n\n

          He emphasized that document extraction is where AI is making the clearest immediate impact\u2014reducing manual work and improving accuracy.<\/p>\n\n\n\n

          \n\n\n\n

          AI Is Becoming Invisible\u2014and That\u2019s the Point<\/h2>\n\n\n\n

          Knecht asked about how AI is realistically changing accounting workflows. Johnston explained that we are moving past the \u201cprompt phase\u201d of AI and into deep product integration. Firms will soon rely on AI-enhanced features without realizing it\u2014just as modern users no longer think about VPNs or SSL.<\/p>\n\n\n\n

          Three Levels of AI Productivity<\/h3>\n\n\n\n

          According to Johnston:<\/p>\n\n\n\n

            \n
          1. Prompt-based general productivity<\/strong><\/li>\n\n\n\n
          2. AI built into standard accounting tools<\/strong><\/li>\n\n\n\n
          3. AI-enhanced platforms designed specifically for accounting<\/strong><\/li>\n<\/ol>\n\n\n\n

            He warned, however, that general AI models like ChatGPT can hallucinate, making accuracy-critical work risky. Tools purpose-built for accounting (e.g., 4ImpactData or MakersHub.ai) avoid this issue because they operate on structured financial data.<\/p>\n\n\n\n

            Hardware matters again<\/h3>\n\n\n\n

            Johnston advised firms to invest in devices with neural processing units (NPUs)<\/strong>\u2014a shift that hasn\u2019t been this significant since the move to the cloud. NPUs will allow AI models to run faster and more securely on local devices, improving tools from trial balance automation to reconciliation.<\/p>\n\n\n\n

            \n\n\n\n

            What\u2019s Coming: The Next Wave of Accounting Technology<\/h2>\n\n\n\n

            Knecht asked Johnston what emerging tools excite him most. Johnston pointed to Basis<\/strong>, which he believes could become a breakthrough platform for reconciliation, reporting, and firm management. Firms using it report 5\u00d7 productivity gains on QuickBooks and up to 10\u00d7 on Sage Intacct.<\/p>\n\n\n\n

            This reflects a broader trend Johnston sees:<\/p>\n\n\n\n

            \n

            Accounting software design has barely evolved since the late 1990s. AI-driven platforms are about to change that.<\/p>\n<\/blockquote>\n\n\n\n

            He expects major leaps in rapid close<\/strong> technologies and consolidation of fragmented toolsets\u2014cutting down on the \u201cten add-ons for CAS\u201d problem.<\/p>\n\n\n\n

            \n\n\n\n

            Choosing Technology the Right Way<\/h2>\n\n\n\n

            Knecht emphasized on the show that firms often buy tools before understanding them. Johnston agreed and suggested a simple two-step evaluation:<\/p>\n\n\n\n

              \n
            1. Is this improving something you already do?<\/strong><\/li>\n\n\n\n
            2. Is it internal efficiency or client-facing?<\/strong><\/li>\n<\/ol>\n\n\n\n

              Client-facing tools should be changed very rarely\u2014every 4\u20135 years\u2014because clients resist switching portals and apps. Internal tools, on the other hand, can evolve more frequently.<\/p>\n\n\n\n

              Johnston also highlighted on the episode that technology spend directly impacts profitability<\/strong>.<\/p>\n\n\n\n

                \n
              • Under 3%<\/strong> of revenue \u2192 firms tend to be underperforming<\/li>\n\n\n\n
              • 3\u20137%<\/strong> \u2192 healthy range<\/li>\n\n\n\n
              • Up to 15%<\/strong> \u2192 fine if managed well<\/li>\n<\/ul>\n\n\n\n

                Technology is a lever, not an expense.<\/p>\n\n\n\n

                \n\n\n\n

                Final Direction for Firms Building Their Tech Future<\/h2>\n\n\n\n

                Knecht and Johnston aligned on one core message:
                Technology should simplify your firm, not complicate it.<\/strong><\/p>\n\n\n\n

                Their guidance from the episode can be distilled into four principles:<\/p>\n\n\n\n

                  \n
                1. Define your services first; build your stack second.<\/strong><\/li>\n\n\n\n
                2. Choose the smallest number of tools that solve the biggest problems.<\/strong><\/li>\n\n\n\n
                3. Adopt AI where it improves real workflows, not because it\u2019s trendy.<\/strong><\/li>\n\n\n\n
                4. Remain client-centric and team-centric in every tech decision.<\/strong><\/li>\n<\/ol>\n\n\n\n

                  Firms that follow this approach will be positioned not just for efficiency\u2014but for deeper advisory, stronger client relationships, and long-term competitive advantage.<\/p>\n","protected":false},"excerpt":{"rendered":"

                  In today\u2019s accounting landscape, technology has moved far beyond \u201cnice to have.\u201d It is the backbone of a profitable, scalable, client-centric firm. On the Building the Premier Accounting Firm podcast, host Roger Knecht and long-time accounting-technology authority Randy Johnston broke down how firms should think about building modern tech stacks\u2014and what\u2019s coming next that will […]<\/p>\n","protected":false},"author":33,"featured_media":28892,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[279,280],"tags":[],"class_list":["post-28891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-run-accounting-business","category-grow-accounting-business"],"_links":{"self":[{"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/posts\/28891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/comments?post=28891"}],"version-history":[{"count":0,"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/posts\/28891\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/media\/28892"}],"wp:attachment":[{"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/media?parent=28891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/categories?post=28891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/universalaccountingschool.com\/wp-json\/wp\/v2\/tags?post=28891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}