What does implementing a PSA system do to a company’s business results? Let’s talk dry numbers.
A thought-provoking survey by MGI Research states that PSA systems were a common link between the most successful companies of 2022. These companies had 20% annual growth and also reduced revenue leakage to less than 3%. Businesses run without a PSA system didn’t have any positive results to show.
Did PSA solutions actually contribute to a profitability boost? Can software be an answer to more efficient management and productive collaboration? Let’s find out.
What is a Professional Services Automation (PSA) System?
A PSA system is a software solution for more efficient management. PSA stands for Professional Services Automation. Its key advantage is combining various management tools into one convenient platform.
PSA software is a system for planning and controlling a company’s
The purpose of PSA systems like Klient, for instance, is to run the entire business on one platform.
PSA software replaces dozens of separate applications every service company uses daily. Instead of dozens of platforms designed for different purposes — project and resource management, delegating and planning, time tracking, invoicing — a company can opt for a single PSA system.
Who Are PSA Systems For?
Professional Services Automation software will be a great tool for companies that aim at less time-consuming and messy management.
Professional service organizations: consulting firms, IT service providers, marketing agencies, and accounting firms.
Companies with multiple projects or clients: healthcare organizations, research institutions, and event planning companies.
Project-based businesses: construction, engineering, and architectural firms. The size of the business doesn’t matter – it can be a small startup or a large enterprise.
Any company billed on a time and materials basis: IT companies, law firms, and marketing agencies.
Some PSA systems will suit smaller companies better than a business behemoth. So, it is always smart to understand the difference between PSA software solutions and know your management needs.
These consulting firms help other companies implement Salesforce into their business.
However, they usually don’t use Salesforce themselves. But Salesforce doesn’t have to be expensive!
Klient PSA software is ONLY $49 per user. And you don’t need to have Salesforce to operate the PSA system. Plus, Klient doesn’t just “integrate” with Salesforce. Rather, it is built into Salesforce natively.
5 Benefits Of Implementing A PSA System
PSA systems save time and visualize business processes. That’s what lies on the surface. But let’s look for more specifics to understand what it brings to the entire business.
So, here is how PSA software can benefit professional services businesses.
Visualized business operations
PSA systems provide real-time service performance insights into project performance.
They visualize client, financial, resource management, and other key performance indicators. This helps organizations identify bottlenecks and take corrective actions on time.
PSA systems help standardize workflows and centralize project management.
Collaboration and sharing information across teams become easier.
Fewer manual and time-consuming tasks
PSA systems automate many manual processes. It frees up employees to focus on more important tasks.
So, PSA systems are one of the keys in a bunch all businesses must have. These keys open the doors to higher profits, reduced expenses, hitting your KPIs, and faster growth.
10 Reasons To Find A PSA System For Salesforce
You might be needing a PSA system for Salesforce if your company has at least two of the worrying symptoms below.
There are delays and errors when it comes to billing or invoicing.
Your company tends to overbook or underutilize resources.
Your team often misses project deadlines.
Accessing important documents takes time.
Your team lacks visibility into project updates.
Budget overruns are normal for your projects.
There is a lot of misunderstanding inside the team. It leads to errors and prolonged operations.
It takes time and extra effort for a manager to check how a project is progressing.
Remote employees have a worse understanding of the company processes. They are not as involved in projects as office staff.
Employees spend more time on manual technical operations than on the project itself.
If your business suffers from 1 or 2 (or 10!) issues from the list above, the best time to invest in PSA software has come.
How PSA Software Can Benefit Professional Services Businesses
Bigger problems of a company root in poor management, we hope you’d agree with that. Business can’t progress when it lacks order on the inside. Automated software deals with issues of a lower level and helps to move forward.
PSA systems save time and make communication inside a service organization more efficient. It all leads to achieving business goals and boosting professional services KPIs.
Key Features To Look For In A PSA System For Salesforce
What to look for when choosing a PSA software, you might ask when a vast variety of options takes you aback. Remember that the ultimate goal of implementing a PSA system is not just convenience. It is improving business results and profitability.
A PSA system that can assist you and your team in doing so has to
provide tools for more efficient project, resource, and customer experience management;
ease financial activities and cut errors in that area;
make accurate estimates and forecasts of profits and expenses.
These are minimum requirements. Let’s be more specific and see whether Klient checks all those boxes.
Klient’s customers report that better visibility of resource utilization has increased their annual revenue by 13%.
PSA software keep track of employee shifts and accomplishments. It helps managers find better ways to maximize efficiency and avoid burnout.
Analyzing resource capacity for ongoing and upcoming projects leads to better planning.
The PSA solution takes into account individual work schedules and employee time off.
PSA systems help organizations fill resource gaps and avoid overbooking or underutilizing resources.
Keeping track of employees’ strengths in one place makes it easy to find the right person for any job.
Resources are the base and the heart of any business. PSA systems provide detailed insights into resource requirements and employee workloads. They help you take care of the most valuable asset of your company.
It’s important to keep customers in the loop. They have to be aware of upcoming milestones. That’s how you manage their expectations and keep them happy with the project outcome. And again, a PSA solution comes in handy.
Addressing potential roadblocks and issues is the best way to avoid customers’ disappointment.
When your team and a customer are on the same page, you can easily manage customer expectations.
Project status reports keep everyone informed about the progress. You can predict the project outcome and have right expectations about customer feedback.
And you know: a happy customer is the best business strategy of all.
Automatic invoices save time and let organizations focus on delivering value to their customers. A PSA system can be your little helper here as well.
Tracking billables, expenses, and fixed fee milestones ensure clients never miss a deadline. It optimizes cash flow and increases client satisfaction.
Managing billing and accounting integrations via a PSA system streamlines invoicing processes and improves accuracy.
PSA systems reduce the risk of errors in invoice processing.
Generating invoices with project milestones and detailed notes ensure clarity and transparency.
All in all, tracking payments within the application means keeping a close eye on cash flow and ensuring everyone is paid accurately and on time.
Best PSA System For Professional Services Organizations
While there are several PSA systems on the market, you’ll find that Klient PSA is one of the best!
Here’s what implementing Klient PSA means for professional services companies:
Reasonable pricing (the Klient PSA software is $49 per user);
Management tools better suited for small to medium businesses (less than 1000 employees);
Native integration with Salesforce. Klient doesn’t just “integrate” with Salesforce – it is built into Salesforce!
All these features make Klient the best PSA system for small businesses. The Klient PSA system is a perfect fit for professional services firms, consultants, Saas companies, and Salesforce partners.
Plus, Klient is the only PSA software that offers professional services recipes — or templates — to help you improve your business. We have years of experience in the industry and know what it takes to be successful. With our recipes, you can streamline your processes, increase efficiency, and boost profits – all without building your system from scratch.
Klient PSA was designed with you in mind. We offer project frameworks specifically tailored for professional services organizations, so you can improve your business and get more work done. You’ll be able to see an immediate improvement in your business with just a little bit of effort. And if you need help implementing them, we’re here for you every step of the way.
But another detail that makes Klient PSA stand out is that it’s built by a team of professional services enthusiasts! As such, we know what it’s like to be in your shoes.
We designed this PSA system to make your life (and ours) easier. From creating and assigning tasks, to tracking deadlines and communicating with team members, we’ve got you covered.
What is a PSA system (Professional Services Automation Software)?
PSA stands for Professional Services Automation. It is software that helps services organizations manage resources, optimize workflows, and deliver quality products.
What are the best uses of PSA software?
PSA software is like a Swiss Army knife for businesses! It can do so many things: managing resources, expense tracking, invoicing, and keeping an eye on customer relationships. PSA software helps businesses work smarter, faster, and with fewer mistakes.
Why is PSA software important?
Top-performing organizations use PSA software to improve their profits and deliver better services. PSA helps them optimize their resources and manage their projects more efficiently.
What is the difference between PSA and PPM software?
PSA software delivers external billable work to customers, while PPM software focuses on managing internal resources.
Where does PSA software fit in an organization’s technology ecosystem?
A PSA solution sits between the CRM and accounting software. It serves as the operational backbone for service organizations.
What is the best PSA platform?
There are different types of PSA platforms available in the market. Businesses need to understand their needs and choose the best PSA solution for them. For instance, Klient is a perfect choice for small companies (200 employees or fewer), professional services firms, and Salesforce partners.
How Did PSA Originate?
Professional Services Automation (PSA) originated in the 1990s from the need to manage business more efficiently. Professional services firms grew and took on more clients. They needed a better way to manage their resources and projects.
How Can PSA Tools Manage Revenue Generation?
PSA tools can help organizations manage revenue generation by
providing better visibility into project timelines, resources, and costs;
tracking project progress and monitoring resource utilization.
PSA tools can also streamline billing processes and ensure accurate and timely payments.
What is PSA in Salesforce?
PSA in Salesforce refers to a Professional Services Automation system that is native to the Salesforce platform. It helps organizations manage their resources, projects, time and expenses, invoicing, and customer relationships all in one system.
What is the difference between ERP and PSA?
ERP and PSA are two types of software. They manage different aspects of business operations.
ERP software focuses on core business processes like project accounting, inventory management, and supply chain management.
PSA software suits professional services organizations better. It focuses on project management, resource management, time tracking, invoicing, and customer relationship management.
Professional services ERP systems are designed to meet the unique needs of industries like consulting, legal, accounting, and architecture. They emphasize resource allocation, billing, and project-based functionality.
In a single, unified platform, they assist businesses with managing financial transactions, monitoring deadlines, allocating resources, tracking expenses, and evaluating performance.
Project management can be streamlined with an ERP system for professional services. For example, team members can collaborate more effectively and complete tasks on time and within budget!
As a result, businesses can deliver high-quality projects…
… which leads to higher customer satisfaction and repeat business.
Resource management is another key feature of professional services ERP systems. These systems ensure that the right people work on the right projects at the right time.
With their data, businesses can allocate resources more effectively. This can improve project outcomes and profitability and minimize overbooking and underutilization of resources.
Business owners can also automate the billing process with ERP systems for professional services. By automating the billing process, these systems help businesses generate accurate invoices and track payments more efficiently.
Billing errors and delays get reduced and everyone gets paid on time!
A professional services ERP system can also offer additional functionality, such as:
Then you can forecast your finances and manage your cash flow better.
Finance teams can track the financial health of the organization and make informed budgeting and spending decisions with an ERP system.
Enhanced reporting and analytics
With ERP systems, you can create customized reports and gain valuable insights to help you decide what to do.
Managers can easily access real-time data about project profitability, resource utilization, and revenue growth with ERP.
Increased customer satisfaction
With a professional services ERP solution, you can manage client relationships more effectively, which means more satisfaction for your clients!
It’s a great way to keep track of client info, including project history, communication logs, and billing information.
Account managers can provide personalized service and respond quickly to client requests.
Disadvantages of ERP for professional services companies
While ERP solutions offer numerous benefits, there can also be drawbacks for professional services firms. Before you invest, consider the following!
High initial costs
The initial investment in an ERP system can be expensive, especially for small and mid-sized firms. A mid-sized business can expect to spend anywhere from $150,000 to $750,000 on an ERP implementation.
Software licenses, hardware, and implementation costs can add up fast!
Before you make a decision, make sure you consider the long-term benefits and return on investment. Don’t just invest on a hunch.
It’s a complicated and time-consuming process to deploy an ERP system. The entire process can be disruptive and decrease productivity during the transition period if significant changes are made to existing processes and systems!
To minimize disruptions for your team, you need a clear implementation plan. But you also need to communicate with employees to keep them updated about the changes.
If your company is a professional services firm, your ERP system might not be flexible enough. Depending on the solution you choose, you may find you can’t customize the system to meet your needs.
As such, when it’s time to adapt for future growth, you may get stuck.
The right ERP systems don’t always come with the industry-specific features and functionalities professional services companies need! That’s because they’re not designed with this industry in mind.
That’s why you should carefully evaluate the system’s capabilities first. Consider customization options before making a decision so that you don’t waste money.
Why PSA tools are a smarter option for professional services firms
While ERP systems have potential drawbacks, a professional services company can successfully implement them and see significant benefits in terms of efficiency, streamlined processes, and better decision-making.
Be sure to weigh the benefits and drawbacks before making a decision, and work with experienced professionals if you want it to work.
But what if you decide an ERP isn’t the best solution for you?
Another option is to consider a PSA platform instead.
One of the key benefits of PSA tools is that they can be customized to your organization.
Unlike traditional ERP systems, PSA systems are specifically designed to meet the needs of professional services firms! That’s why a PSA tool offers industry-specific features that can be customized to meet the unique needs of different professional services companies.
Plus, it’s easy to use!
It’s also usually easier and faster to implement PSAs than full-scale ERPs, which means less downtime for your team.
Additionally, PSA tools are usually more cost-effective than ERP solutions, which can be helpful for firms that need to implement new software quickly and efficiently.
PSA systems require fewer licenses, hardware, and implementation resources, so they’re more cost-effective for professional services firms.
But they’re also scalable, which means you won’t be limited by a tool you’ve outgrown.
It’s especially important for firms looking to expand or enter new markets.
How to choose the right PSA for your professional services company
You’ve got a lot of PSA solutions out there, so it can be hard to pick the right one. Here’s what to think about:
Make sure the PSA tool has the features your company needs, like time tracking, resource management, and billing. PSAs should be able to streamline your business processes, improve team productivity, and give you real-time insight into financial performance, resource utilization, and project status.
Customizability: Find out if the PSA system can be customized to suit your company’s needs and processes. Every professional services firm has its own workflows and practices. You want a PSA system that’s customizable so that you can add and remove features, change workflows, and make custom reports to fit your business needs.
PSA integrations: Check if it’s easy to integrate with other software tools your organization already uses, like CRM or accounting. For example, if you use Salesforce, pick a PSA that’s native to Salesforce!
If you want your PSA system to grow with your company, it should be able to accommodate new users, projects, and workflows. As your business grows, your PSA system should be able to adapt and enhance as needed. Having a scalable PSA system won’t cause you to outgrow it and switch to another one, disrupting your business.
Research the vendor’s reputation and track record to see if they’re reliable and offer software updates all the time. You should get great customer support from a good vendor, including training, implementation, and ongoing maintenance. They should also make sure your PSA system has the latest security patches and features.
By considering the factors mentioned above, you can select a PSA system that meets your business needs. This will improve your team’s productivity and help you achieve your business goals.
Streamline Your Professional Services Business With The Right Platform
Now you should have a better idea of whether an ERP is the right solution for you.
If you’ve found that’s not the case, you can book a demo with the Klient PSA team to discuss your needs!
With the right PSA tool implemented, your professional services organization can cut down on manual processes while increasing profit margins. And we’ll let you know whether Klient PSA is that tool.
Not sure what to choose beween an ERP vs PSA for your professional services company?
Enterprise Resource Planning (ERP) and Professional Services Automation (PSA) solutions both offer unique benefits for streamlining operations and driving growth. However, there are some key differences between the two types of solutions. ERP solutions are typically more comprehensive, while PSA solutions are more focused on project management and resource allocation.
To make an informed purchasing decision, you must understand the distinctions between ERP and PSA software.
In this comprehensive guide, we will explore the definitions, benefits, and examples of ERP and PSA software. By examining their similarities and differences, you’ll gain valuable insights into how each solution impacts various aspects of your business processes!
Lastly, we’ll help you make an informed decision that aligns with your long-term goals by assessing your needs, evaluating the available options, and choosing the most appropriate solution for your specific needs.
By centralizing data from various departments into a single system, an ERP solution enables organizations to make informed decisions based on real-time information.
Benefits of ERP
Here’s how professional services firms can benefit from implementing an ERP solution:
Better decision-making: With access to real-time data across multiple departments in one centralized location, leaders can make more informed decisions about resource allocation and strategy development. Data-driven organizations can outperform their competitors by 6% in profitability and 5% in productivity, according to PwC.
Increase operational efficiency: Automating manual tasks like data entry helps reduce errors and save time spent on repetitive workloads. Highly data-driven organizations are three times more likely to report significant improvement in decision-making, according to PwC research.
Cross-functional collaboration: By breaking down silos between teams through shared access to crucial information via the ERP platform, employees can collaborate more effectively towards common goals.
Simplified IT infrastructure: A unified system reduces the need for maintaining separate software solutions for each department or function in your organization which ultimately simplifies your IT infrastructure.
Examples of ERP Software
When choosing an ERP solution for your business, you have a wide variety of options to consider. Some popular examples include:
Oracle ERP Cloud
Microsoft Dynamics 365 Finance and Operations
Each of these solutions caters to different industries, business sizes, and requirements.
ERP systems are powerful tools that can help businesses of all sizes streamline processes and improve efficiency.
However, PSA software is an even more specialized tool designed specifically for professional services organizations. It offers increased automation capabilities to make managing projects easier than ever before.
What is PSA?
Professional Services Automation (PSA) refers to a suite of software tools designed specifically for businesses in the professional services industry, such as:
Professional service departments in SaaS teams
Implementation partners for solutions such as Salesforce
These tools help streamline various aspects of project management, resource allocation, time tracking, billing and invoicing while improving collaboration among team members.
By using a PSA platform, teams can communicate more effectively and efficiently. They can track and manage their tasks, allocate resources appropriately, and ensure billing and invoicing processes are accurate and up to date.
This helps to ensure the project is completed on time and on budget.
Benefits of PSA
Better Project Management: With features like Gantt charts and Kanban boards, PSAs make it easier for teams to plan projects effectively from start to finish.
Increase Resource Utilization: By providing insights into available resources and their skill sets, PSAs enable managers to allocate tasks more efficiently based on expertise or availability.
Closer Collaboration: With real-time updates on project progress shared across departments through built-in messaging systems or integrations with popular communication platforms like Slack or Microsoft Teams.
Close the gap between sales and delivery: When running your entire business on a single platform, you can close more deals and delivery higher-quality projects.
Examples of PSA Software
The market offers several leading PSA solutions catering specifically to different industries within the professional services sector. Some examples include:
Klient: A native Salesforce PSA platform designed for professional services businesses to manage tasks, deadlines, finances, and team communication efficiently.
Productive: An all-in-one software to manage professional services, specifically agencies, including sales and reporting. Productive is a standalone platform that doesn’t integrate with Salesforce without using third-party tools.
Projector PSA: A cloud-based solution that offers robust features like time tracking, expense management, and revenue forecasting tailored to professional services firms. While it integrates with Salesforce, it isn’t native to it.
PSAs are a powerful tool that can help professional services businesses streamline their processes and improve efficiency. You can determine which ERP or PSA solution is most advantageous for your business by examining the differences and similarities between the two.
Professional services businesses need to understand the differences and similarities between Enterprise Resource Planning (ERP) and Professional Services Automation (PSA) systems. The purpose of this section is to help decision-makers in professional services businesses determine which solution is most appropriate for their organization.
Similarities between ERP and PSA
Data Integration: Both ERP and PSA systems aim to integrate various business processes into a single platform, streamlining data management across departments.
Better Decision-Making: By providing real-time insights into business performance, both solutions help managers make informed decisions that drive growth.
Increase Efficiency: Implementing either an ERP or PSA system can lead to improved efficiency by automating manual tasks, reducing errors, and saving time on administrative work.
Cross-Functional Collaboration: Both types of software facilitate collaboration among team members from different departments through centralized communication tools like chat features or shared task boards.
Differences between ERP and PSA
Purpose & Focus: An important distinction lies in their primary focus areas. While ERPs cater to companies with diverse operations such as manufacturing or distribution, PSAs are specifically designed for professional service organizations looking to optimize project delivery (source).
Customization : Due to their broader scope, ERPs tend to be more generic, requiring extensive customization for specific industries. On the other hand, PSAs are tailored to meet the unique needs of professional services businesses out – of – the – box.
Implementation Time & Cost: Generally, ERP systems have longer implementation times and higher costs compared to PSA solutions due to their complexity and need for customization. In contrast, PSA platforms like Klient can be implemented faster with a lower upfront investment. ADD A SECTION HERE ONCE WE HAVE A POST FOR KLIENT UNIVERSITY FOR ONE OF THE LATEST PEOPLE!
User Experience: As ERPs cater to various industries, they may not provide an intuitive user experience for service-based organizations. Conversely, PSAs focus on delivering seamless experiences tailored specifically for professional services firms.
In short, PSAs are designed to make day-to-day operations easier and more efficient. They are focused on improving productivity and streamlining processes so users can get work done faster.
This translates into a more enjoyable and productive work environment. On the other hand, ERPs are designed to help organizations gain better visibility, control, and accuracy over their operations.
Choosing the Right Solution for Your Business Needs
It can be challenging to choose between an ERP and a PSA solution when your business’s unique needs and goals are taken into consideration. In order to evaluate the appropriateness of different business solutions, you need to examine your requirements, weigh options, and consider both their benefits and disadvantages.
Let’s get into it!
Assessing Your Business Requirements
To determine which system best suits your professional services business, start by identifying your organization’s specific needs. Consider factors such as:
The size of your company
Your industry sector
The complexity of the projects you manage
Your team collaboration requirements
Budget constraints or preferences on pricing models (e.g., subscription-based vs one-time purchase)
You may also have other needs to consider. Make sure to look at your organization as a whole instead of only considering separate departments or teams.
Evaluating Available Solutions
Find candidates that meet your criteria for ERP and PSA solutions once you have a clear understanding of what you need.
Analyze the features offered by different systems by focusing on how they address pain points specific to professional services businesses.
For example, if members of your team log billable hours, the solution you pick should allow your team members to choose between billable and non-billable hours when entering their timesheets.
Here’s another example — let’s say you run a SaaS business with a professional services department. This department needs a solution to onboard customers faster without anyone falling through the cracks.
Let’s also say the rest of your company uses Salesforce to manage customer data and automate marketing. It would make much more sense to choose an ERP or PSA that’s built directly into the Salesforce ecosystem.
Otherwise, your professional services team will operate on an entirely different platform. This can lead to silos, confusion, and lack of efficiency.
By choosing a Salesforce-integrated platform, you ensure your team works with the same data and technology, resulting in better collaboration and communication.
c. Making an Informed Decision
When comparing potential solutions based on their capabilities relevant to addressing identified challenges within your organization, consider the following:
Analyze any discrepancies between the two types of systems and their compatibility with your existing operations and scalability for future expansion.
Consider the ease of integration with your existing systems and processes.
Evaluate the scalability of each solution to accommodate future growth or changes in your business needs.
Factor in any additional costs, such as implementation, training, and ongoing support services.
Remember that selecting the right software can significantly impact productivity, efficiency, and overall success – so invest time in making a well-informed choice.
How To Choose The Best PSA For Your Organization
If you’ve decided to opt for a PSA instead of an ERP, here’s what to keep in mind:
Pick a platform that integrates with (or is native to) the environment you already use. If the rest of your organization is already on Salesforce, it only makes sense to choose a PSA that’s native to Salesforce!
Otherwise, the PSA solution should fit your business goals. Nearly all PSA tools share similar features, but they’re not all built for the same types of businesses.
For instance, Klient is ideal for consulting firms, SaaS companies, and Salesforce partners with up to 200 employees.
Frequently Asked Questions About Erp vs Psa
What is the difference between PSA and ERP?
The main difference between PSA (Professional Services Automation) and ERP (Enterprise Resource Planning) lies in their focus. While PSA software is designed specifically for professional services businesses to manage projects, resources, and finances, ERP systems cater to a broader range of industries with functionalities like supply chain management, manufacturing planning, and financial management.
What is PSA in an ERP system?
PSA in an ERP system refers to the integration of Professional Services Automation features within an Enterprise Resource Planning solution. This allows organizations to streamline their project management processes while also benefiting from other core functions provided by the integrated platform such as finance or inventory control.
How would you compare an accounting information system with an enterprise resource planning system?
An Accounting Information System (AIS) focuses on managing financial transactions and generating reports for decision-making purposes. On the other hand, Enterprise Resource Planning (ERP) systems offer a more comprehensive suite of tools that include not only accounting but also operations management, human resources, procurement & logistics among others.
What are three disadvantages of ERP systems in an organization?
High implementation costs: ERP systems can be expensive due to licensing fees and customization requirements.
Complexity: These solutions can be difficult to implement and require extensive training for employees.
Rigidity: ERP systems may not always adapt well to unique business processes, leading to a lack of flexibility.
Wrapping It Up — Have Fun Growing Your Business With Klient PSA
While ERP is more focused on financial management, PSA offers a comprehensive set of tools for streamlining operations and automating processes.
Ultimately the decision between ERP vs PSA depends on your business needs; if you require advanced automation capabilities then PSA may be the better option for you.
If you’re looking for a way to manage your professional services projects from start to finish on Salesforce, Klient PSA is the platform for you.
And no, you don’t need a Salesforce license to start using Klient PSA!
Book a free demo to start scaling your business fast: