I don’t believe in data entry.
Do you know how many other things you could accomplish if you and your team could take those hours devoted to data entry and apply them to the areas of your business that need a human touch? Automating data transfer can free up untold amounts of time, not only in the actual data entry work, but also in reduced mistakes and better financial insights. The key to making it all work is the right accounting tech stack.
So many people get frustrated by trying to connect apps, and it’s not hard to see why. Even if they were made to communicate with each other, it’s easy to make mistakes in the initial setup that have a ripple effect across time. We’re deal with the consequences of this all the time. It’s why we believe that accounting tech stack setup is an ideal point to bring in the assistance of a professional, even if you’re going to ultimately do all of your bookkeeping in-house.
What is an accounting tech stack?
You probably already have a tech stack of some sort running part of your business. Your accounting tech stack is an integration of everything you need on the financial side. Exactly which apps you use is heavily dependent upon your business, but most tech stacks include some version of the following features:
- Bookkeeping Platform
- Time Tracking
- Accounts Payable and Accounts Receivable
- Document Management
- Point of Sale
Those tend to be the core features most businesses need, but there are hundreds of other specialized tasks that can be incorporated as well. We start building out a tech stack by determining which activities need to be tracked and automated, and then look down the road to see what the business will need to grow over time.
Isn’t that going to be expensive?
Each app does carry its own costs (typically about $20/month or less); the more apps you add, the more your costs increase. You can look at this in a couple of ways. First, what’s the hourly cost of manual data entry and fixing the inevitable mistakes? Does it exceed the cost of each app? Second, which apps do you truly need? Are there certain features you can get from a single app rather than needing multiple subscriptions?
When we build out accounting tech stacks, we’ve never had a client come back and say, “It’s too expensive. Let’s go back to the old way.” In order to achieve that result, it’s critical to take a strategic look at what your business needs today and in the future. Rather than adding apps one at a time, have a plan to build out what you need. Ensure the apps you choose will grow with your business or enable you to easily port your data elsewere.
What are the best cloud accounting apps?
To help you build your accounting tech stack, we’ve created a free download to show you the apps we recommend. On the second page, you’ll get a blank template to help you think through how to build your own accounting tech stack. Complete the form below to get your copy.
Looking for more? Check out our free online course, 5 Weeks to Better Bookkeeping. In addition to hearing more about how to build your accounting tech stack, you’ll get insights into managing your bookkeeping, cleaning up past years, and getting the information you need to run your business.