The verdict in three sentences
A firm of 30 staff and 700 clients running profitability on spreadsheets typically loses 10 to 15 points of fee recovery. Off-the-shelf practice management tools such as Karbon or Senta, at GBP 30 to 80 per user per month, handle workflow and time tracking well but connect poorly to your document management system and production software. A custom build at GBP 40,000 to 80,000, delivered in 4 months, makes sense when you want engagement letter, actual time and invoice tied together in one dashboard per client.
What a firm needs to track, and where tools fall short
Production software (Xero Practice Manager, IRIS, CCH, TaxCalc) handles bookkeeping, accounts and tax returns. Profitability is decided elsewhere: gap between engagement budget and actual time, out-of-scope work never billed, delayed invoicing.
| Management need | Spreadsheet + production software | Off-the-shelf (Karbon, Senta) | Custom build |
|---|---|---|---|
| Engagement letters generated and signed | Manual, Word | Yes, standard templates | Yes, firm templates + e-signature |
| Time tracking by client and task | Spreadsheet, late entry | Yes | Yes, with reminders and mobile entry |
| Engagement budget vs actual time | Monthly manual calculation | Partial | Real time, alert at 80 % of budget |
| Out-of-scope work detection | None | Rare | Automatic rules, change proposal |
| Link to DMS and production | None | Limited integrations | Dedicated API integration |
| Recovery rate by partner and client | Yearly, rough | Monthly | Weekly, per engagement |
The 2026 budget: subscription or custom
| Item | Off-the-shelf (30 users) | Custom build |
|---|---|---|
| Setup | GBP 2,000 to 8,000 | GBP 40,000 to 80,000 |
| Recurring cost | GBP 30 to 80/user/month, GBP 10,800 to 28,800/year | Hosting and maintenance GBP 6,000 to 12,000/year |
| 5-year cumulative cost | GBP 56,000 to 152,000 | GBP 70,000 to 140,000 |
| DMS and production integration | Vendor integrations, sometimes extra | Custom, included |
| Engagement letter templates | ICAEW/ACCA-style standard | Firm templates, clauses by client type |
| Go-live time | 1 to 2 months | 4 months |
| Data and code ownership | Vendor | Firm |
Custom is not always the right answer: below 15 staff or without integration needs, a well-configured Karbon or Senta setup remains more cost-effective. The custom case strengthens when the firm has unusual service lines or wants to own its data model.
Modules and their share of the project
| Module | Scope | Share of budget |
|---|---|---|
| Engagement letters | Generation, budget, signature, annual renewal | 20 % |
| Time tracking | Web and mobile entry, reminders, manager approval | 20 % |
| Fee billing | Retainers, fixed fees, time-based billing, chasers | 20 % |
| Dashboards | Profitability by client, partner, engagement, client type | 15 % |
| Integrations | DMS, production software, firm accounts | 20 % |
| Security and permissions | SSO, roles, logging, UK hosting | 5 % |
Mini case study
Emma, partner at a 30-person accounting firm in London, bills GBP 2,400,000 of theoretical fees a year across 700 clients, with an 85 % recovery rate, so GBP 2,040,000 collected. The custom module, at GBP 60,000 delivered in 4 months, flags any client exceeding 80 % of budget and spots out-of-scope work. Target: 95 % within 2 years. Even gaining only 4 points in year one, the firm recovers 2,400,000 × 4 % = GBP 96,000, well above the project cost. At 95 %, the annual gain reaches GBP 240,000. Billing admin time also drops by about 6 hours a week for the practice administrator.
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FAQ
How much does custom practice management software cost?
Between GBP 40,000 and 80,000 for a firm of 20 to 50 staff, depending on integrations. Delivery takes about 4 months, then GBP 6,000 to 12,000 a year for maintenance.
What is a good fee recovery rate?
Well-run firms reach 92 to 95 %. Below 85 %, the cause is usually an untracked engagement budget or one-off work never re-billed.
Can the module connect to our production software?
Yes, if the vendor exposes an API or scheduled exports, which most major UK vendors do in 2026. Integration accounts for about 20 % of the budget.
Do generated engagement letters meet professional standards?
The module uses your approved templates, aligned with ICAEW or ACCA guidance, and adds clauses by client type. Advanced e-signature costs about GBP 1 to 2 per letter.
Where is client data hosted?
In the UK, with an ISO 27001 certified host, encryption and daily backups, in line with UK GDPR and the Data Protection Act 2018.
Let's scope your project. Tell us your headcount, client count and current software, and we will price your practice management module (indicative budget GBP 40,000 to 80,000, delivery in 4 months). Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
