Actionstep Practice Management includes a comprehensive accounting system, which is a core part of the Practice Management architecture that integrates with workflow and trust accounting. Users who want to use QuickBooks or Xero for accounting can hide the Practice Management accounting functions from their users and the respective integrations will post transactions to those systems in real-time.

The Practice Management Accounting feature set includes (but is not limited to):

• Bank reconciliation
• Exporting batch payments to your bank (based on jurisdiction availability)
• Creditor (supplier) expense capability with aging (includes prompt to invoice your client)
• Debtor (client) sales capability with aging
• The ability to upload documents with every transaction or step in your workflow, which supports a paperless office
• Financial reporting
• Foreign exchange (Multi-currency trust accounts are not supported)
• General ledger
• General ledger journals
• Inventory (This is limited functionality)
• Job (action) costing, which means all accounting transactions can be linked back to (or generated from) an action
• Permissions, which allow you to limit your staff to certain areas of Practice Management and accounting
• Pre-printed checks, which means you can configure Practice Management to create check batches using your pre-printed checks
• Sales tax reporting (This is available on both an invoice and payment basis)
• Template functionality, which allows you to automate your frequent transactions for ease of entry
• Time billing
• Trust accounting

Practice Management supports both cash-based income (where income is only recognized on payment) and accrual-based income (where income is recognized when it's invoiced). When cash-based accounting is used, Practice Management also supports the "natural allocation" of payment on a partly paid invoice (defining which portion of the invoice is paid if full payment has not been received/made).

Practice Management also allows you to create a client quote (an estimate for the services you're going to provide) and, once the client agrees, you can convert that quote directly into an invoice. You don't need to manually enter all the details again—it's automated. Additionally, when the invoice is generated, it also automatically creates related transactions with suppliers. For instance, if you need to pay external vendors or suppliers as part of fulfilling the client’s request, Practice Management can create those supplier transactions without you having to enter the information a second time.

If you're considering using Practice Management to manage your accounting, these FAQs might answer some common questions:

• Do we need Accounting to use the rest of Practice Management?
• Can we migrate to Practice Management Accounting at a later date?
• Will it be difficult for my accounts staff to change to Practice Management?
• When is the best time to move my Accounting to Practice Management?
• What do I need to get started using Practice Management Accounting?
• Are opening balances required for a go-live date?
• What is the end-of-year process?
• Can I use Practice Management with another accounting system?

Do we need Accounting to use the rest of Practice Management?

 It is possible to use other areas of Practice Management without Accounting; however, you may need to set up a chart of accounts for other functions to run. If you decide to use Practice Management Accounting later, you may need to clear the Accounting data you created using other applications. Some firms adopt the Accounting module some time after integrating with Practice Management, which allows them to initially move some of the job roles into Practice Management without bringing the entire team at the start.

Can we migrate to Practice Management Accounting at a later date?

Will it be difficult for my accounts staff to change to Practice Management?

For some, process changes can often be difficult; however, we find that because of the intuitiveness of Practice Management, those who might struggle with change quickly see their workload reduced as they explore how easily accounting can be integrated into their everyday workflow.

When is the best time to move my Accounting to Practice Management?

The best time to start is the beginning of the financial year, which varies based on location. This doesn't mean you must wait until the start of the financial year to start using Accounting, but we do recommend that you backfill your accounts from the beginning of the financial year, which you can do using a general ledger journal. This ensures a clean and simple cutover from your old accounting system to your new one since all your accounts will have been finalized at end of the year. You can then use the closing balances from the old system as the opening balances in Practice Management Accounting.

Note: The date from which you enter information into the new software is known as your conversion date. So, if you start using Practice Management Accounting in July but you record transactions dating back to 1 April, your conversion date is 1 April. If you want to convert over to Practice Management Accounting part way through the financial year and you have chosen not to enter historical transactions dating back to the beginning of the financial year, the next best time to convert is at the beginning of a sales tax return period.

What do I need to get started using Practice Management Accounting?

 In order to use Practice Management Accounting, you will need the following:

• Tax returns/final accounts for the most recent financial year. These will help you decide how to set up your Chart of Accounts.
• Check books, deposit books, bank statements, and credit card statements.
• A list of who owes you money at the time of your conversion date. This list will be made up of all your open invoices (e.g., those that haven't been paid at the time you convert to Practice Management Accounting). The list should show the date of the original invoice and the invoice number.
• If you intend to record supplier invoices, you will also need a list of everyone to whom you owe money. Include dates, amounts, and invoice numbers on the list.

Are opening balances required for a go-live date?

What is the end-of-year process?

Practice Management calculates the company earning based on the financial year start date. This means you do not need to perform an "End of Year" process. It also means that the historical data is available to view at any time.

Note: It's encouraged that you use a "lock out" to prevent changes once your year is finalized. This way, your external accountant is able to access Practice Management to pull reports and find backing documents.

Can I use Practice Management with another accounting system?

 We recommend that you use either Practice Management's built-in accounting system or an accounting system that integrates directly with Practice Management, like Xero or QuickBooks. It is possible to use a non-integrated accounting system with Practice Management, but you will need to double-enter contacts and billing information.

Additional Resources:

• Introduction to Actionstep Accounting
• Understanding the Xero and Actionstep Integration
• QuickBooks Online Integration Set-up for Practice Pro + Accounting

Updated May 19, 2026 16:23