By Tan Somkiat (LinkedIn), Co-founder, Security & Automation · Co-authored with Claude, Anthropic's AI assistant
Updated 11 October 2026
- Xero Practice Manager (XPM) is the usual hub for Xero-based firms: one client list and central job management.
- Karbon suits firms that run on email and teamwork: shared inbox, workflow, capacity planning, time and billing.
- FYI suits firms whose pain is documents: document management and automation for practices.
- Ignition covers proposals, engagement letters, billing and payment collection.
Most firms use two or three of these together. The time savings come from connecting them.
What accounting client management software does
Accounting client management software, often called accounting practice management software, keeps your client list, jobs, deadlines, documents and communication in one place, so the whole team can see what's due and who's doing it. In Australia it's usually built around Xero Practice Manager or a Xero-connected alternative.
The four tools compared
| Xero Practice Manager | Karbon | FYI | Ignition | |
|---|---|---|---|---|
| Main job | Client list and job management | Work management and collaboration | Documents and email | Proposals, engagement and billing |
| Strengths | Single client list, central jobflow, part of the Xero ecosystem | Email management, workflow, CRM, capacity planning, time and billing | Cloud document management that automates repetitive tasks | Proposals, billing, payment collection and workflows in one place |
| Xero connection | Native | Native: matches and links client records | Listed on the Xero App Store | Listed on the Xero App Store |
| Client portal | Usually via add-on apps | Yes | Not built in (per Karbon's comparison) | Client-facing proposals and payments |
Pricing changes often and depends on team size, so check each vendor directly.
Workflows to automate around your practice software
Whichever software you choose, these are the workflows where firms lose the most time. Each one runs from a trigger to a result, with an accountant reviewing anything that matters.
- Proposal accepted
- Client created in practice management
- Engagement letter sent for e-signature
- ID and onboarding forms requested
- Xero file connected
- Deadline calendar updated
- Job created for each client
- Document request sent to the client
- Job status updated when files arrive
- Client email arrives
- Matched to the client
- Filed to their record
- Task created if action is needed
- Job completed
- Time and WIP pulled
- Invoice drafted
- Partner approves and it's sent
- Meeting recorded with consent
- AI drafts notes and action items
- Accountant reviews
- Saved to the client record with tasks
How to choose
- Match it to your practice: a bookkeeping practice, a tax practice and a full-service firm need different things; tax-heavy practices care most about deadlines and lodgements, bookkeepers about recurring client work.
- Start from your bottleneck: jobs and deadlines (XPM or Karbon), documents and email (FYI or Karbon), or proposals and getting paid (Ignition).
- Check the Xero connection: what syncs, in which direction, and how often.
- Plan the gaps: no single tool covers everything, so map the hand-offs between them before you buy.
Tell us how your business runs and we'll recommend the software, and the automations, that will save you the most time.
Speak to our automation experts →Related automation services
We automate the client work around your practice software, from onboarding and document requests to AI meeting notes.
Frequently asked questions
What is the best client management software for accountants?
For Xero-based firms, Xero Practice Manager is the usual hub. Karbon suits email-heavy teams, FYI suits document-heavy practices, and Ignition handles proposals and billing. Many firms combine two or three.
Can these tools be automated together?
Yes. Onboarding, job creation, document requests and billing can flow between them, so client details are entered once.
See more on our automation for accounting practices page.
Sources
- Xero App Store: practice management apps and streamline practice management
- Karbon on the Xero App Store; Karbon vs FYI (a competitor comparison)
How this guide was made: Tan Somkiat wrote this guide with Claude, Anthropic's AI assistant, which helped research and draft it. Facts and figures come from the sources linked above and were checked on the dates shown.
This guide is general information. R&T Automation isn't paid by any of these vendors.