This article covers how consulting firms evaluate, choose, and implement accounting software, including must-have features, buying criteria, and integration needs.
Why it matters: Manual invoicing and disconnected systems drain hours firms could spend on billable work, while the right software turns financial data into faster, more profitable decisions.
Key Takeaways
- Automation cuts admin time, not accuracy: Accounting software automates invoicing, expense tracking, and tax calculations, freeing consulting teams to focus on billable client work.
- Real-time data shapes better decisions: Live dashboards give consulting leaders visibility into cash flow and project profitability as work happens, not weeks later.
- Project accounting fits multi-client firms: Deltek ERP combines project-based accounting with CRM and resource management for firms billing multiple clients.
Accounting software is crucial for consulting firms to maintain accurate financial records, manage expenses and invoicing, and monitor cash flow. It simplifies the process of tracking revenue, expenses, and profitability, which is essential for making informed business decisions.
Benefits of Accounting Software for Consulting & Professional Services
Consultants need specialized accounting tools because billable hours, multiple concurrent projects, and per-client profitability mean that generic bookkeeping software falls short. Purpose-built accounting software gives consulting and professional services firms several distinct advantages.
1. Automate Time-Consuming Tasks
Accounting software saves time and money by automating expense tracking, invoicing, and tax deductions. This frees consultants to focus on billable, revenue-generating client work instead of admin.
“On a day when I would have spent the entire time doing billing, it now takes me an hour to two hours to get all of our invoicing done.”
— Nancy Connery, Founder and Principal, Connery Consulting
2. Get Real-Time Financial Insights
Accounting software provides consulting firms with real-time financial insights, enabling leaders to adjust strategy as conditions change. Live data supports better cash flow management and helps surface where to cut costs.
34% of professional services firms say increasing cost control (purchases and approvals) is the single biggest lever for improving profitability.
3. Maintain Compliance and Reduce Risk
Automating repetitive tasks reduces the risk of errors in financial records. This helps consulting firms stay compliant with regulations and helps avoid costly mistakes.
Finally, consulting organizations that manage many projects or multiple clients should implement project-based accounting solutions.
By integrating project accounting software into their operations, organizations can gain an understanding of profitability at both project-specific and organizational scales. Armed with this information, organizations can pinpoint which projects generate the highest profits, enabling more informed strategic decisions.
Key Features of Accounting Software for Consulting Firms
Some key features of accounting software for consulting firms include:
- Invoicing: Create and send professional invoices to clients and track payment status.
- Expense Tracking: Monitor and categorize business expenses for accurate financial reporting.
- Financial Reporting: Generate various financial reports such as profit and loss statements, balance sheets, and cash flow statements.
- Tax Compliance: Automate tax calculations and ensure compliance with tax regulations.
- Project Management Integration: Integration with project management and time-tracking tools allows seamless collaboration and real-time updates on project financials, resource allocation, and budget tracking — essential for assessing project performance.
- General Ledger & System Integration: Connects directly to your general ledger and other business systems, so client billing, payroll, and reporting data stay in sync without manual re-entry.
Manual handoffs are often where firms lose the most time: “If I ask an accountant, what gets in your way of doing your job?... how do we help firms or help our clients to be able to pay faster, to be able to get the right invoices,” said Megan Miller, Senior Director, Product Marketing at Deltek.
Guide
5 Areas of Your Business That Will Benefit from Connecting Project and Financial Information
Discover how your professional services firm can profit from linking its business development, resource management and project accounting data with its financial information.
How to Choose the Right Accounting Software for Your Consulting Firm
Choosing the right accounting software is a critical business decision. For many consulting firms, it's also part of a broader decision about their overall ERP strategy, as accounting, project management, resource planning, and reporting often need to work together in a single system.
So, what factors should you consider when choosing accounting software for your consulting firm? Here are some key considerations:
1. Scalability
Choose accounting software that can scale with the firm's growth. It should handle a growing number of transactions, clients, and users without a costly re-platform.
2. Features and Functionality
Identify the specific features required for the consulting business, including invoicing, expense tracking, financial reporting, project accounting, and integration capabilities with other business tools.
3. Integration with Other Systems
Ensure the accounting software can seamlessly integrate with other systems used by the firm, such as customer relationship management (CRM) software, project management tools, and payroll systems. Pairing project accounting with dedicated resource management software also helps firms staff the right consultants to the right projects before profitability slips.
Only 22% of professional services firms have a fully integrated end-to-end project management system. While a further 53% report that their systems are mostly integrated, many still rely on disconnected applications and manual processes that can limit visibility, efficiency, and decision-making.
4. User-Friendliness
The software should be user-friendly and easy to navigate. A steep learning curve can hinder productivity and adoption within the firm.
5. Compliance and Security
Ensure the accounting software complies with relevant accounting standards and regulations. Security features such as data encryption, access controls, and regular software updates should also be considered to protect sensitive financial information.
6. Cost and Budget
Evaluate the total cost of ownership, including licensing fees, implementation costs, training, and ongoing support. Match the choice to the consulting firm's budget constraints and the value it delivers.
7. Configuration Options
Assess the level of configuration the accounting software allows. Consulting firms often have unique requirements, so the ability to tailor the software is important.
8. Vendor Reputation and Support
Research the software vendor's reputation. Look for customer reviews, testimonials, and a history of reliable support and updates.
9. Mobile Accessibility
Mobile access to accounting data is essential in today's business environment. Choose software that offers mobile apps or a responsive web interface for on-the-go access.
10. Future Upgrades and Roadmap
Check the vendor's commitment to ongoing development. A clear product roadmap and regular upgrades keep the software current with evolving business needs and technology trends.
Deltek ERP: Project-Based Financial Management Software for Consulting Firms
Deltek's ERP solutions for consulting and professional services firms help organizations integrate accounting, project management, resource planning, and CRM capabilities into a connected environment. With greater visibility across the project lifecycle, firms can improve forecasting, optimize resource utilization, and make more informed business decisions, while supporting long-term growth.
“With real-time access to both operational and financial data, Wiss employees have gained a powerful tool for collaboration and decision-making.”
— Alex Volpi, Senior Manager, Technology Advisory Group, Wiss
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Frequently Asked Questions
Accounting software for consultants is a digital tool that tracks invoicing, expenses, tax compliance, and financial reporting for consulting and professional services firms. The best options add project accounting, so firms see profitability by client and by project, not just company-wide.
The best option centralizes billing, project tracking, and reporting for every client in a single system, eliminating the need to juggle spreadsheets for each engagement. Project-based ERP software links financial data to each client and project so firms see profitability across their entire client base.
Most modern accounting software for consulting firms integrates with the general ledger, CRM, payroll, and project management systems, so data flows between them automatically. This reduces manual re-entry and keeps billing, time tracking, and financial reporting consistent across the firm.
Cost varies based on firm size, number of users, and whether the software also handles project accounting, CRM, or resource management. Consulting firms should budget for licensing, implementation, data migration, and training, not just the subscription.
Accounting software handles day-to-day bookkeeping, invoicing, and reporting, but most consulting firms still rely on a CPA for tax strategy, audits, and complex compliance questions. Software and a CPA work together: the software keeps records accurate and current, so your CPA can focus on higher-value advice.
