Why your accounting tech stack is important

Whats a tech stack? Why is it important?

Accounting tech stach
You may have heard the term tech stack and might be wondering what it is and why you should care. The term comes from the computer software industry. Today the term is being used increasingly for solving business accounting problems and this article refers to the cloud accounting software that is used in combination for businesses.

For small businesses the tech stack usually revolves around the accounting software, QuickBooks Online and Xero are two popular ones. From there a number of other software solutions (called ‘apps’) are used in combination (‘stacked’). Apps can assist with many functions and there are increasingly more to pick from on a daily basis.

Let break them down to a few categories. The list here doesn’t even begin to cover all the options only some of the more popular ones used in Canada by progressive companies and their accountants.

Pre Accounting Apps

These apps can take a digital image, like a PDF or JPG file and translate it into a format that can be automatically posted into your accounting software. Three very common Pre-Accounting Apps are Hubdoc, Dext, and AutoEntry. While they all work in a slightly different manner they all have a common purpose which is to reduce and in some cases eliminate data entry.

Cloud Accounting Software

Cloud accounting software has dramatically changed how accounting is being completed. While it isn’t yet to the point where it is 100% automatic there are some real game changing features that cloud accounting brings that you just can’t match with desktop software.
– Bank feeds that instantly pull transactions from your bank account
– Rules that allow many transactions to be coded automatically
– Connections with other supporting software (‘apps’)
– Close to real time access to your financial information and reporting

Payment Apps

Payment apps now exist that automatically collect payments from your customers AND post the payment back to the accounting software. In Canada a couple that are very popular include Rotessa and Plooto. Plooto is also able to pay your vendors directly and you can approve payment on your smart phone.

Cashflow Apps

A big question for many business owners is where did my money go? By pulling directly from the accounting software the business owner is now able to analyse and plan based on very current information. Some apps in this category include DryRun, Float

Reporting and Dashboard Apps

These apps are for the business owner who is looking to grow and monitor business operations. Some of these tools are very sophisticated and can provide a wide variety of information. Many apps also have features that can permit what-if scenarios so the results of business decisions can be simulated. Some examples are Fathom, PowerBI, Spotlight.

So what does that mean for the business owner still working on the desktop? These functions still happen in the business they just take longer to complete. In general, this is because the process is either manual (cheques) or the lack of connections between the software tools require data to be rekeyed to another tool (Excel).

While it may seem to be a huge undertaking to move to the cloud and implement these technologies in your company it all starts with moving your accounting online.

Benefits of going online!

Going Online

Benefits of Online Accounting

Maybe you’ve heard someone talking about cloud, paperless or online accounting and you’re wondering why people are moving to it? There are a lot of reasons business owners, bookkeepers and accountants are making this change.

Here are our favourite benefits of moving your accounting online.

It’s secure and easy to recover

Working in the cloud means you’re working on a platform with multiple layers of security. If your phone, tablet or laptop is broken, lost or stolen, all your data is safely backed up in the cloud. No more managing upgrades or backups or sending files back and forth to your accountant.

Streamline your business

Going paperless sounds great doesn’t it? It’s possible (and easy) with cloud technology! Use your phone or tablet to capture your receipts and manage your expenses easily. Say goodbye to pesky piles of paperwork taking up space and your energy.

Run your business on the go

Access your data, financial information, reports and the information you need to make business decisions on the go from anywhere, anytime, on any device. Free yourself from the office and enjoy the freedom to run your business wherever you want to be!

Improve cash flow, get paid faster and grow your business

Cloud accounting technology includes online invoicing which allows you to send invoices to customers quickly and seamlessly and follow them up automatically. Modern accounting platforms help you improve your cash flow and get paid quicker – what’s not to love?

Access real time financial data

Cloud accounting software gets you financial data in real-time. This means you’ll have the information on hand to make informed, quick and accurate business decisions when you need to.

Add more to your software

Once online you’ll have access to hundreds if not thousands of helper apps.  Think of online payroll, cash management, job tracking, customer management, and reporting tools.  There are also many industry specific apps that have been designed to work with accounting app like QuickBooks and Xero. If you have a pain point, there’s probably an app out there that can help.

Get information how you want it

Don’t like spreadsheets or boring reports? Quickly access reports, dashboards and other information in easy to understand visual formats. If you understand exactly how your business is performing, you’ll be better positioned to run a successful business. How can you make good decisions if you don’t have all the right information?

Collaborate with your accountant, colleagues and partners

Grant your accountant access to your file and you can expect real-time advice as well! Collaborate with your business partners and colleagues by allowing and restricting user access as you need.

We love it!

We love online accounting so much that it’s all we do! Our passion is helping businesses move to the cloud and thrive there.

Connect with us today to see how we can make this happen for your business, too.