When firms invest in IT infrastructure, technology ROI is always a popular topic. But actually measuring ROI of a given solution can be hard. That’s why we asked several CCH Axcess customers to describe how they’ve measured ROI on their tax software. Not every firm measures ROI the same way, but everyone wants to get the most from their investments.
The infographic below shows two different approaches to technology ROI. One firm estimated the amount of time saved per year and then multiplied by an average blended hourly rate for a $10,000 ROI.
Of course, measuring time saved per return can be hard, especially if your firm handles returns of varying complexity. If that’s the case, you can take a more high-level view of ROI. One firm compares its own growth rate to its competitors, using the Accounting Today top firm average growth rate as a benchmark.
These are just two approaches to measuring technology ROI. You could also measure KPIs like client satisfaction, number of temporary staff needed, or number of returns completed. Whichever metrics you choose, make sure what you’re measuring lines up to the firm’s overall goals. When you have clear goals, success will follow.
Learn how can you get the most out of your technology investment. Download the “Laying the Foundation for Firm Success” white paper.