What Is PSA Software And How Does It Work?
Often, the very things that make project work enjoyable can make running a project-based business troublesome. The variation that comes from completing lots of different activities for multiple clients can be a real challenge.
However, with the right technology it makes it a lot easier to tackle issues and ensure your business is running smoothly and effectively.
This is where professional services automation (PSA) software comes in. A broad PSA software definition is – “the tools that can help you get a handle on the challenges that are inherent in the project‐based world.”
What is PSA software?
PSA software helps professional services firms accurately plan, monitor and execute projects by increasing visibility into the organisation and providing more granular levels of detail.
It can improve resource management, streamline financial processes such as invoicing and billing, ensure on-time project delivery and drive performance and profitability.
It differs from an enterprise resource planning (ERP) solution because it does not typically include any accounting functionality, rather it focuses on the ‘front office’ area of the business.
It can, however, integrate with your existing accounting system and plays nicely with ‘back office’ systems.
How does PSA software work?
PSA software is designed to unify an organisations business units and information – anything from procurement to human resourcing, finance to sales, or financial projections to marketing materials.
By integrating all of these aspects into one PSA software solution it allows the organisation to identify critical business processes and establish rules and boundaries to ensure processes are followed.
The idea is to create a seamless flow of accurate and timely information between multiple business functions so that anyone can find and access what they need at any time.
The effective sharing of information means that senior management gain a better visibility into the business and are also better supported when it comes to making business critical decisions.
What are the benefits of PSA software?
The key benefit of using a PSA software solution is that every single transaction is tied to three things – a client, an organisation and a project.
The two elements that are fundamental to success are the organisation (the person or group doing the work) and project (the product or service delivered to the client and creating economic value within the firm).
Linking these two aspects then produces insight into areas such as project profitability by department or manager, resource utilisation by resource type and future pipeline by project type.
By connecting your corporate information and project information through a single platform, you gain unparalleled visibility and control of the business with the ability to make decisions based on current, real-time information.
Implementing a PSA software solution should be a no brainer for organisations looking to operate at a higher level than the competition, increase productivity for all staff and gain a better understanding of what makes the business most successful.
For more information on how a PSA software solution could work for your business, please download our PSA for Dummies guide here.