Why are so many firms still losing money on outdated tech?
Let’s be honest, most accountancy firms have been steadily adding more and more tech to their stack for years. Everyone wants to be efficient, right? But, as Luke Farren, founder of The Modern Firm, pointed out in a recent conversation with Brandi Johnson from AppVentory, there’s a lot to consider.
It turns out that just buying the latest shiny software won’t fix underlying problems if the basics aren’t right. You can end up with a stack of disconnected apps, all costing you time and money, rather than saving it.
So, why does this keep happening? According to Luke, the tech in our sector has moved forward at pace, but the thinking in many firms hasn’t kept up. “We’re ultimately going to enter a whole new era of AI and automation,” he says, “but so many firms still don’t have the fundamentals or the basics in place to set themselves up for success.”
Sound familiar? You’re not alone. When Brandi polled the audience, every single respondent described their current tech stack as “somewhat cluttered”. Lots of tools, not sure they’re all needed, and definitely not convinced they’re all working together.
The real red flags, are you guilty of these?
Luke has seen it all. When asked about the most common red flags he spots on firm audits, he doesn’t mince his words. Too often, people get pulled in by vendors at conferences, thinking a new bit of kit will magically solve all their problems. But without well-structured data and processes, all you get is a “bag of knots”—a mess of systems, none of them talking properly, and precious little real benefit.
He warns, “If you think in silos, not as part of a holistic strategy, you’re setting yourself up for problems.”
So what are the biggest challenges?
- No clear strategy for tech investment
- Lots of outdated tech and software that isn’t actually being used
- Technical debt and misaligned processes
- An ever-growing tangle of disconnected tools
How to start a real tech audit (without hiring a consultant)
Here’s the good news—you don’t need a fancy system or outside consultant to begin. Luke suggests a good old-fashioned look through your bank and credit card transactions. Yes, it’s basic, but you’ll be amazed what you find. “Before you know it,” Luke says, “you’ve got hundreds, if not thousands of pounds annually creeping out the back door in terms of outdated software you’re just no longer using.”
He tells of a firm who, only after a bit of proper digging, found they were still paying for platforms nobody could even log in to. Sound familiar? That £20 a month for an old tool can easily slip through for months—or years—if nobody’s watching.
Spotting wasted spend is one thing, doing something about it is another
So you’ve found a few skeletons in the cupboard. Now what? Here’s where many firms get stuck. Luke splits the problem of outdated tech into two: tech you’re not using at all, and tech you’re using for just 5-10% of its real value. Either way, it’s money down the drain.
Why aren’t firms making changes? Sometimes it’s because the right people aren’t involved in decisions. Sometimes it’s just plain inertia—nobody has time to figure out if you’re really getting your money’s worth. And often, as Luke puts it, “There’s too much planning and not enough action. Plancrastination is real.”
Are you buying for today’s problem, or thinking about the bigger picture?
Luke’s advice? Don’t just grab new apps for every pain point. Step back and look at your tech as a whole. “The only real way to realise whether the software you’re using is fit for purpose is to look at it as part of a well thought-out and structured strategy.” And whatever you do, don’t get stuck thinking you can do it once and forget about it—“None of this stuff is one-and-done.”
How often should you review your tech stack?
It depends on your firm’s size, says Luke. Larger firms might need a full audit every year, while smaller practices can get away with less frequent deep dives—especially if the team is small and hands-on. But don’t let things drift for too long; regular reviews are key.
Where does automation fit in all this?
If you’re still thinking automation is just a buzzword, think again. Luke is clear—tools like AppVentory are game changers (his words, not mine). Plug in your data, and you can surface insights you’d never spot flicking through spreadsheets. Automation means less time manually reconciling what you’re paying for, and more time making smart, strategic decisions.
And let’s not kid ourselves—none of us wants to spend our days manually highlighting subscriptions on spreadsheets! Automation lets your team focus on value-add, not busywork.
Turning insight into action
Once you’ve got visibility, what’s next? Luke’s advice: make a plan, set a timeline, and get on with it. Whether you use a consultant or not, it comes down to freeing up resources and holding people accountable. Don’t let those projects languish half-finished—“If you’re going to rip the plaster off, do it properly.”
And sometimes, you need a bit of outside help. If you don’t have the capacity in-house, bringing in a third party can be the “forcing function” that actually gets things done.
One final thought—are you ready for the pace of change?
The profession’s at a crossroads, says Luke. “People really need to start leaning into the expectation that this industry is changing at pace.” There’s no sense in burying your head in the sand. Get the basics sorted, fix your foundations, and set your firm up for success.
So, are you ready to stop losing money on outdated tech and start making it work for you? Start your 14-daty free trial of AppVentory now and let’s get started!
