Key Takeaways:
- In this article, we compare Karbon vs Canopy. While Karbon excels in workflow automation and analytics, ideal for firms prioritizing efficiency, Canopy stands out with its client relationship management and specialized tax solutions, perfect for those focused on client relations and complex tax cases.
- We cover Karbon vs. Canopy’s best features, positives, potential pitfalls and pricing. Each software has its strengths, so it's crucial to evaluate features, pricing, and integration requirements to find the best fit for your accounting business.
- When choosing between Karbon and Canopy, consider your firm's specific needs and priorities. Alternatives like Cone can be a good choice if both do not fulfill your requirements.
Often, accounting firms spend an unnecessary amount of time on fringe tasks that can take away from critical work. Every minute that your employees spend on administrative tasks such as managing emails, scheduling appointments, or filing and organizing documents is time away from client management and actual accounting work that can help your firm grow.
A recent study shows that small accounting firms can lose around 5% of their manpower, which is almost 120 workdays a year, to these non-core activities—precious time that could be spent growing their business. So, how can accounting firms tame this bustle and reclaim lost time? Accounting practice management software is the simple answer to this.
While there are many practice management software in the market, Karbon and Canopy are two popular software that can help you on this management journey. Karbon’s collaborative practice management features make it a handy tool for accountants, while Canopy’s intuitive features are touted as a good fit for small and medium accounting companies.
In this article, we will compare Karbon vs Canopy, digging into each of their features, functionalities, and pricing to help you make a better decision on what could be a good fit for you. We will also look at Karbon and Canopy alternatives like Cone, which comes with accounting CRM, proposals, projects, workflows, billing, invoicing, and email management, saving you time and never losing revenue starting at 5$ per user/month.
Karbon vs. Canopy: What Does Each One Do?
Karbon and Canopy are both accounting practice management programs that mainly target accounting and tax firms as their users. They aim to be an all-in-one software solution for practice management for different clients, including accounting and tax professionals.
Karbon software excels in:
- Visibility and Control: See where each project is at, who is working on what, and all communication channels in one spot.
- Automation and Efficiency: Automate repetitive processes, set deadlines, and monitor progress. Free up your team's brain energy for more critical tasks.
- Data Analytics: Using Karbon, you can gain insight into the performance of your business through advanced data analytics capabilities.
Canopy software shines in:
- Client Relationship Management (CRM): Canopy’s CRM is popular among users for its ability to help build strong relationships with clients.
Learn about CRM Software for accounting.
- Client Portal: The Canopy client management portal lets clients communicate and share documents securely and easily.
Learn about client portal software for accountants.
- Tax Workflow Solutions: If your firm deals with complex tax clients, Canopy project management offers in-depth tax workflow solutions, including integrations with the IRS and automated tax resolution services.
Pro Tip: While considering the best accounting practice management software for accountants and bookkeepers, you may also want to consider proposal management software. Learn more about project management software for accountants.
Karbon Vs Canopy: Breakdown, Benefits, and More
What Is Karbon?
Karbon Practice Management was founded in 2014. It is a cloud-based software designed primarily for accounting companies and tax professionals. Features like workflow management, client management, and a unified communication platform in Karbon CRM help accounting firms operate efficiently with better time management and output.
Karbon software can be useful for:
- Accounting and Tax Firms
- Firms Seeking Workflow Automation
- Firms Prioritizing Collaboration
- Firms Focused on Data-Driven Decisions
- Cost-Conscious Firms
With its cloud-based platform accessible from anywhere, Karbon practice management enables users to manage their workload seamlessly, stay organized, and deliver exceptional service to clients.
What Are Karbon’s Top Features?
Karbon, as an accounting practice management software, boasts of many features that are useful to accountants. Some of the top features of Karbon include:
Better Client Management: Karbon's client management tool streamlines the entire client and offers features like proposal-to-payment functionality, simplification of procedures through bulk actions and role delineation, and branded client engagement letters.
Document Management: Karbon Accounting keeps everything organized in one central location, accessible from anywhere. Karbon also ensures your documents are secure with encryption and two-factor authentication for added protection.
Workflow Capabilities: Karbon CRM’s workflow feature provides great visibility, letting teams know precisely who's assigned to each task and its status. Features like customizable templates, bulk task assignments, and automation capabilities, reduce human error rates.
Email Management and Integration: Karbon's email management seamlessly integrates with your workflow, ensuring all communication is centralized and easily accessible. With insights and mobile access, Karbon streamlines email processing, saving time on client communication, task management, and team collaboration.
Team Collaboration: Karbon's team collaboration tools streamline communication and task management for accounting firms. Karbon's activity timelines provide a shared history of client interactions, enhancing visibility and accountability across the team.
Key Features Worth Considering
- Automatic Client Reminders
- Task Automation
- Industry Integrations
- Budget vs Actual Reporting
- Integrated Email
- Team Collaboration Tools
- Workflow and To-Do Lists
Pros of Karbon
Reviews from users across the internet suggest the following pros of Karbon:
User-Friendly Interface: Karbon is praised for its simple-to-use design. Even users without any technical knowledge can use this software easily.
Seamless Email Integration: Karbon integrates seamlessly with email, allowing for easy delegation and follow-up on tasks.
Workflow Management: Karbon offers features that make project creation, management, and team collaboration relatively easy and painless.
Excellent Client Task Management: Karbon's client task management functionality is highlighted as excellent and extremely useful, aiding in effective client communication and task delegation.
High Satisfaction Ratings: Despite some users discontinuing its use, Karbon receives consistent praise. Popular websites like G2 have given it a 4.8-star rating based on reviews from satisfied users who appreciate its effectiveness and long-term value.
Potential Pitfalls of Karbon Worth Noting
Complex Template Setup: Karbon provides different template options, but some users complain about how setup proves cumbersome, and that it does not have an automated proposal-to-payment feature.
Budget: Karbon accounting starts at $59 per user, which could be costly for small businesses. The best CRM software for accountants like Cone starts at $5 per month, making the alternatives a better option.
Client Support: Karbon’s in-app client support can be quick for simple hiccups, but complex issues may require representative assistance, which may not always be readily available.
Pricing of Karbon
Karbon offers three tiers to fit your accounting firm's size and needs.
- The "Team" plan starts at $59 per user per month.
It is the most budget-friendly option, and it's perfect for smaller firms, offering the core collaboration and workflow tools to keep things organized.
- The "Business" plan with more features starts at $89 per user per month.
It is designed for growing firms seeking workflow automation and integration, automatic client reminders, and time tracking with budget reporting capabilities.
- For large accounting firms, Karbon offers the "Enterprise" plan with custom pricing.
Learn more about several alternatives to Karbon practice management software.
What is Canopy?
Canopy Practice Management is a cloud-based accounting and tax software solution launched in 2014. Canopy provides tools for customer administration, communication, document storage, automated workflows, and even tax resolution. It is often touted as a reliable software for small and medium-sized accounting firms and tax practitioners. It provides different functionalities such as proposal creation, time tracking, billing and invoicing, among others.
Canopy is best suited for:
- Accounting and taxation firms
- Firms Focused on Client Relationships
- Tax-Heavy Firms
- Firms Seeking Efficiency Gains
- Firms with Scalable Needs
- Security-Conscious Firms
This comprehensive suite is particularly helpful for firms seeking to improve efficiency, strengthen client relationships, and manage complex tax situations.
What are Canopy’s Best Features?
Canopy AI: Canopy’s AI functionality can prove to be an effective and solid tool for various accounting needs. From delegating routine tasks such as writing compelling emails to workflow management, harness the power of AI to focus on more important work.
Transcripts and Notices: Canopy's transcripts and notices feature simplifies the often complex task of accessing and managing tax transcripts for accountants and tax specialists. With automated transcript retrieval, users can effortlessly pull transcripts without manual intervention, saving time and effort.
Easy Documentation: Canopy ensures documents are organized, collaborative, and securely stored, eliminating the need for manual processes and reducing the risk of errors or misplacements.
Tax Resolution: Canopy's Tax Resolution software has an extensive library of templates, pre-built workflows, and letter templates, which make tax work more manageable and efficient. Canopy automates calculations for client surveys and calculation forms, saving time and reducing the risk of errors.
Time and Billing Feature: Combined with Client Engagement, Document Management, or Workflow functionalities, the Time and Billing software feature enables users to manage payments per client, run profitability reports, and gain insights into payment histories for each client.
Key Features Worth Considering
- Canopy mobile app for easy access
- Best-in-class security
- eSignatures for quick approvals backed by a secure link or a KBA
- Pre-created templates
- Perform bulk actions and set up recurring tasks
- Better time management through task deadlines and alerts
Pros of Canopy
Let us see some of the pros of using the Canopy software.
Improved Practice Management: Canopy helps with client management, including organizing client information, files, communication, notes, and tasks
Simple File Sharing: Canopy's Virtual Drive and Client Portal provide convenient options for uploading files securely and without storage limits.
Securely Share Tax-Sensitive Documents: Unique to Canopy is its Desktop Assistant feature, which simplifies the process of saving documents to the platform, ensuring easy uploading without the hassle.
Tailored Package: Canopy can be customized to fit your firm's needs. Canopy also offers a 15-day free trial, so you can use the features without worrying about expiration.
Tax-Related Tasks: Canopy simplifies tasks like pulling tax transcripts and preparing tax resolution letters. Canopy's insights feature allows you to identify trends more naturally than searching through tables.
Alerts and Liveboard: You can set alerts based on specific metrics. You can schedule the live board to be sent to members of the firm.
Potential Pitfalls of Canopy Worth Noting
Similar to Karbon, Canopy also suffers from several limitations.
Steep Learning Curve: Canopy's platform with numerous functions requires time to familiarize with tools and settings, potentially slowing down initial productivity.
Client Assignment: Some users have complained of automated client assignments being inconsistent unless certain settings are manually adjusted.
Comparatively High Price: Compared to its competitors like Cone, which offers CRM software for $5, Canopy’s cost of $14 seems high.
Pricing of Canopy
Canopy software offers two types of pricing structures:
Plans for growing firms: The base package is provided free of charge for up to 250 clients. For firms having to manage more than 250 clients, Canopy charges for each additional 50 users.
Plan for small firms:
For small firms, Canopy provides two different pricing plans.
- The Starter package is at $45 (annually) and $60 (monthly) per user per month.
- The Essentials package is for $66 ( annually) and $88 (monthly) per user per month.
It also offers powerful add-on features to supercharge your accounting toolkit.
- Add-ons such as Time & Billing start at $25 per user per month
- A Workflow add-on costs $35 per month per user
- The Document Management add-on for $40 per user per month.
- For an additional $50, the tax Resolution package includes transcripts and notices as well as a library of administrative forms.
Learn more about alternatives to Canopy.
A Feature-by-Feature Comparison: Karbon vs. Canopy vs. Cone
How Do Each of These Compare For Your Practice?
Both Karbon and Canopy are popular tools and have their own advantages and disadvantages.
If workflow automation, collaboration, and data analysis are your priorities, then Karbon might be a better fit. If your firm focuses on client relationships, a user-friendly client portal, and specialized tax solutions, then Canopy could be the way to go.
Alternatively, if you want to try another software with none of the limitations above and at an affordable price, you can try Cone’s accounting practice management software today. Unlike Karbon and Canopy, which primarily target accounting firms, Cone's platform encompasses various industries, from small firms to established enterprises. Learn more about Time and Billing Software for Accountants.
Cone’s Practice Management software for accountants offers the following features:
All-in-One Efficiency: Cone consolidates the functionalities of project management, billing, and proposal software into one platform starting at $5 per user/month, offering substantial savings.
Eliminates Context Switching: By integrating various operational tools into a single platform, Cone eliminates the need for context switching and data syncing, streamlining workflows and saving time.
Client Portal: Cone's is a comprehensive client-facing project management tool that enhances document management, expectation setting, and visibility for clients, tailored to meet the needs of professional services. It is often considered among the top project management software with client portals.
Sales Pipeline And Lead Management: Never miss acting on a lead. Prioritize leads, create proposals, and close more deals.
Chat: Instant communication and collaboration with clients with a real-time chat feature.
Eliminate Document Chasing: Send clients forms, collect e-signatures, and request necessary files effortlessly. Automatic client follow-ups by Cone ensure a streamlined workflow without constant reminders.
Proposals And Engagement Letters: Has all the capabilities of accounting proposal software (e.g., payroll proposal, bookkeeping template), engagement letters, invoices, and client billing within a unified platform.
Automate Workflows for Efficiency: Cone's automation liberates you from time-consuming manual projects and workflow management.
Detailed Reporting: Gain insights into project priorities, profitability, and overall efficiency. Make informed decisions based on detailed project reports.
Flexible Payment Methods: Supports various payment methods like direct debit, credit, or debit cards. Charge payments automatically, streamlining collections.
Cone is a great alternative to both Karbon and Canopy - starting at $5 per user/month, its cost-efficient pricing plans and modular architecture allow the software to adapt to business growth seamlessly, ensuring that users always have the tools they need.
Interested in checking out Cone? Try for free today!
What To Choose?
Both Karbon and Canopy offer solutions for accounting firms, each with its own set of strengths. When choosing between Karbon and Canopy, it's essential to consider your firm's specific needs and priorities.
If you want to go with Karbon, consider this: Karbon excels in workflow automation, data analytics, and collaboration, making it ideal for firms prioritizing efficiency and visibility. If workflow automation and data-driven decisions are paramount, Karbon may be the better fit.
On the other hand, Canopy stands out with its client relationship management tools, specialized tax solutions, and AI functionality, catering to firms focusing on client relations and tax-heavy workloads. Conversely, if client relationships and tax management are your top priorities, Canopy could be the optimal choice.
Ultimately, the best choice depends on your firm's specific needs. We would suggest you try out this software and find what is best for you.
If you want to try out a software that serves as a single app to replace all, sign up for Cone for free today. Cone combines the advantages of both Karbon and Canopy; it excels in workflow automation, data analytics, and client management, making it a better alternative.
Competitive Pricing: Cone offers a budget-friendly solution starting at $5 per user/month, well below the market average of $50, ensuring affordability without compromising on functionality.
Unified Platform: Unlike Karbon and Canopy, Cone integrates proposal management seamlessly with practice management and other features, streamlining operations and enhancing productivity. Check out proposal software for accountants.
Intuitive and Efficient: Cone's user-friendly interface challenges traditional software, making tasks simpler and boosting efficiency, eliminating the need for extensive training.
Unlimited Task Management: Cone offers unlimited tasks, ensuring thorough project coverage. With efficient project and workflow management, accountants stay organized, focusing on impactful tasks while automating routine ones.
Time Tracking and Invoicing: Boost team productivity with Cone's time-tracking feature, ensuring accurate time tracking and billing and seamless invoicing, leading to efficient client management and accounting processes.
Integrated Email Management: Cone's integrated email management simplifies communication. With a unified inbox, accountants can access, manage, and track client emails seamlessly within the platform, enhancing communication and ensuring timely responses.
Enhanced Client Portal: With an extensive client portal, Cone enables efficient management of client documents and communication, fostering transparency and trust, and setting it apart from competitors like Karbon and Canopy.
As your businesses navigate the complexities of modern management, the choice between Karbon, Canopy, and even Cone represents more than just software selection. It is a strategic decision to embrace innovation, optimize efficiency, and unlock the full potential of organizational success.
So choose wisely! If you plan to try out Cone, sign up today!
Frequently Asked Questions
- How Much Does Canopy Cost?
For growing firms, the base package is free for up to 250 clients, with additional charges for each extra 50 clients. For small firms, there are two plans available. The Starter package costs $45 annually or $60 monthly per user. The Essentials package is priced at $66 annually or $88 monthly per user, offering enhanced features.
- What Is Similar to Karbon?
Software such as Cone and Canopy are accounting practice management platforms similar to Karbon. These software have features like client engagement, workflow automation, and task management to manage accounting processes.
- Is Karbon Cloud Based?
Yes, Karbon is a cloud-based platform. With this model of software, accounting professionals can work remotely and collaborate efficiently with clients by accessing accounting management tools and data online from any internet-connected device.
- Is Canopy Cloud Based?
Yes. Canopy is a cloud-based management software. This cloud-based approach offers flexibility, accessibility, and ease of collaboration, allowing accounting professionals to work efficiently from anywhere.
- I'm a small accounting firm. Which practice management software can I use?
For small accounting firms, Cone’s starter packages offer a cost-effective solution tailored to smaller teams.
- Can I try Karbon and Canopy before purchasing?
Yes, both Karbon and Canopy offer free trials, allowing you to explore their features and determine which best suits your business needs.
- How does pricing for Karbon and Canopy compare?
Karbon's pricing starts at $59 per user/month, while Canopy offers plans starting at $45 per user/month. However, both platforms may offer additional features and customization options at higher pricing tiers.
- Can Cone be a suitable alternative to Karbon and Canopy?
Yes, Cone offers a unified platform with CRM, project management, and email integration at a competitive price starting at $5 per user/month, making it an attractive option for businesses looking for comprehensive solutions.