The features and benefits of professional services automation (PSA) software allow service-based businesses, such as accounting firms, to track, manage and deliver jobs and projects efficiently – even as your business scales up.
It removes the spreadsheets and manual processes around project management so your teams can focus on what's most important – increasing client satisfaction and accelerating revenue growth.
This guide looks at the key features of PSA solutions and outlines the steps to follow when choosing the right system for your business.
What is professional services automation?
Professional services automation (PSA) software connects and automates the core processes of delivering a service-based project. From workflow planning and resource allocation to time and expense tracking and invoicing, this software helps you manage jobs and finances, report efficiently, and improve profitability and client satisfaction.
Key features of PSA software
The key features of PSA software give you real-time visibility of each stage in a project's life cycle, so you can manage your workflow and work-in-progress, manage client expectations effectively, and measure performance.
PSA software like MYOB Practice Management typically offers:
Accounting
Accounting functionality within a PSA solution helps you track costs and profitability and automate invoicing processes, to ensure that every job brings in enough revenue to meet your business needs and goals.
Efficient project management
Efficient project management is a big reason service providers lean on PSA software. It lets you plan, execute, track and report on your pipeline from start to finish, all on one platform, which is essential as you scale and take on more work.
Time tracking
Time tracking is the bread and butter of any service-based business. Most PSA software comes with timesheet tools, allowing employees to capture how much time they spend on each job. This helps managers with workflow planning so your firm can take on the right amount of work to uphold your profitability and performance.
Resource management and optimisation
Resource management and optimisation are essential for any business, especially professional services. It's hard to know whether you can take on and deliver a project without visibility of your teams' workloads or available resources.
PSA solutions help you track resource utilisation – information critical for demand forecasting and demand planning – allowing you to pinpoint when you might need to reallocate internal resources or hire more staff.
Integration capabilities
PSA software has integration capabilities that connect it with your existing tech stack, such as the apps you use on a day-to-day basis. This can help you streamline and automate other business processes beyond project or practice management and use data to inform decision-making.
Benefits of professional services automation software
The benefits of professional services automation software help service-based businesses do four main things – manage workflow easily, optimise resource allocation, drive strong profit margins, and increase customer satisfaction.
Reduce manual administration and improve profit
By reducing manual administration, PSA software helps improve profitability. Rather than duplicating data across spreadsheets and systems, a PSA solution only requires you to enter the data once.
Instead of manually tracking time and expenses, automated workflows and processes make it easier for employees to accurately record their hours, which leads to better cash flow management and fewer billing disputes. All of this decreases admin costs and frees your team to focus on billable work, improving overall profitability.
Improved project management
With PSA software, improved project management goes beyond the visibility of progress status and timelines. You get complete, real-time visibility of a project from start to finish, so it's easy to spot potential delays or budget roadblocks and take corrective action. Automation also helps you match people and resources to suitable projects and schedule them efficiently to maximise productivity.
Better internal collaboration
Better internal collaboration is another result of PSA software’s real-time visibility. When all the people and departments working on a project can see where everyone is, it's easier to communicate and deliver the quality of service your clients expect.
Real-time reporting
Real-time reporting and analytics from PSA software can help your business make faster, more confident decisions that maximise profitability. Dashboards and customised reports make it easy for decision-makers to access the information they need to identify project delays and allocate resources to match demand.
Improved customer satisfaction
Improved customer satisfaction is arguably the most beneficial outcome of PSA software. When you can consistently deliver work on time, within budget and to the highest quality, it leads to increased client satisfaction – clients are more likely to work with you again or refer your services to other businesses. Additionally, automation allows teams to focus on clients and business growth rather than administrative tasks.
How to choose a PSA software solution
When choosing PSA software, we recommend following these steps to ensure you find a system that performs well and delivers a high ROI.
Identify your needs and goals
Identifying your needs and goals should always be the first step when choosing any business system because it helps you focus on what's most important. For example, if you want to improve profit margins, you'll need PSA software with advanced reporting functionality.
Conduct market research and compare vendors
Next is conducting market research and comparing vendors. Reduce your list of potential vendors based on whether their solution has the features that matter most to your business, they have experience working with similar companies in the same industry, and other factors like implementation time, ongoing customer support and staff training.
Test a range of solutions
Test several solutions – it's the best way to evaluate access, usability and how each option handles the unique aspects of your business.
Choose the software that best suits your business needs
It's time to choose the software that best suits your business needs. If you need to make tradeoffs between systems that offer different capabilities, go back to your must-have requirement list. The right choice will be the solution that gets you the closest to achieving your business goals.
Professional services automation software FAQs
What is the difference between ERP and professional services automation software?
The difference between ERP and professional services automation software is that ERP systems focus on streamlining business operations like accounting and finance, supply chain management, HR, and payroll. A PSA system's core functionality revolves around automating project or practice management functions like time tracking, invoicing, and resource allocation.
Who uses PSA software?
PSA software is commonly used by service-based businesses that earn revenue primarily through billable hours – for example, accountants, bookkeepers, lawyers, marketing agencies, business consultants and construction and engineering firms. However, it can also benefit any project-based organisation that needs to establish a consistent process for planning, managing and measuring project performance and success.
What is the difference between PSA software and a CRM?
The difference between PSA software and CRM systems is that PSA software connects and automates project and resource management tasks. In contrast, a CRM is designed to manage customer relationships for sales and marketing.
PSA to all professional services – use PSA software!
MYOB Practice Management provides real-time visibility of your work-in-progress and people in one system. As PSA software, MYOB Practice Management removes the manual processes that cost you time and money while giving you insight into how your firm is performing and what resources you'll need to scale your operations.
Ready to grow and scale up your service business? Book a free demo today!
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.