Is Your Accounting Tech Stack Helping or Hurting?

Tech Stack Tips for Small Business Accounting

My very first job out of college came with an assignment to create a training manual for my department. The company had just rolled out a new ERP system and we needed a way to make sure that everyone was trained on the new way to use the system. To create this training manual I was basically given Microsoft Word and screen shots. Needless to say, the task dragged on for days, maybe even weeks. It felt mind-numbingly endless. 

Fast forward ten years. I found myself creating another training document, but this time I found a tool called Scribe How. Instead of days, I built the guide in the same amount of time it took me to complete the task itself.

The lesson? The right tool makes your life easier. The wrong tool, or even way too many tools, can slow you down, cost you money, and give you a headache.  

And when it comes to your accounting operations, the same rule applies. In today’s blog, we’ll dig into how to tell if your accounting tools are helping your business or hurting it, and how to set up a tech stack that actually works for you. Because let’s face it, we are blessed to have too many choices for our tech stack and this can be a very overwhelming decision. 

What to Do If You’re Starting With No Tools?

Answer: Start with the problem, not the tool. Before you go out and grab the latest shiny app, ask yourself: 

What problem am I actually trying to solve?

All too often, we get sold on a tool because it promises to “do it all,” only to realize later it doesn’t actually solve the problem. By getting crystal clear on the problem first, you’ll make sure that any tool you choose has a real job to do in your business. This helps eliminate the bloat and avoid clutter in your tech stack.

Here are a few questions to guide you:

• How do I want to track my income and expenses and what level of detail do I really need?

• Am I looking for tools that integrate with the systems I already use?

• Do I need real-time financial reports, or will monthly reporting be enough?

• Am I struggling to keep receipts and documentation organized for tax time? I’m looking at you shoebox of receipts. 

• Do I need to make payroll easier and more accurate?

• Is my invoicing process and payment collections taking too long?

• Will this tool grow with my business, or will I outgrow it in a year or two?

Evaluating Your Existing Tools

Remember all those shiny objects that were supposed to help you run your accounting operations? Now they are just sitting there, being paid for monthly or yearly and collecting dust. So before you add another shiny object to your collection here are a few questions to ask yourself.

• Am I using my existing tools? If no one is using it, consider getting rid of the tool to save confusion and money. 

• Am I using my existing tools fully? If you’re facing a pain point, check whether your current tools are being fully used. You might not need a new app, just better use of what you already pay for.

• Does it talk to my other tools? Choose tools that sync and integrate. This saves time and reduces errors by avoiding double entry.

• Is it cost-effective? Two tools that talk are sometimes better and much much cheaper than one that “does it all”. 

• Will this grow with me? Can the tool be used as your business grows?

The 4 Accounting Tools Every Business Needs

In all likelihood you may not need a separate tool for all of these categories. However you will need a way to handle all of these accounting tasks. A streamlined stack should save you time, reduce errors, and give you clarity. 

1. Core Accounting Software:

   Preferably you should pick a cloud based accounting software to be the reliable data source for your numbers. Some popular tools to consider are QuickBooks Online or Xero and both can be used as the foundation for tracking income, expenses, and reports.

2. Payroll:

   Whatever payroll platform that you choose, make sure that it talks to the core accounting software to avoid manual entry of payroll journals. Using a tool like Gusto which integrates directly with your accounting system means that payroll accounting and tax filings happen automatically when you run payroll. 

3. Spend Management:

   Control the money that leaves the business. This means finding a spend management platform like Bill or Ramp to set AP approval processes and budgets for company card users. This used to mean utilizing two tools, one for AP and one for corporate cards but in today’s environment, platforms like Bill and Ramp are tackling this together making it much easier for small businesses to control the spending. 

4. Invoicing & Payments:

   Make it easy for customers to pay you. That all starts with being able to send out invoices in a timely manner (read: easy) and allowing customers to pay online, via Stripe, PayPal, or QuickBooks Payments. Yes, there will be credit card fees but ultimately you will be paid faster. 

The key is not using all of these, just the ones that fit your business.

Keep It Simple

At the end of the day, the best accounting tools are the ones you’ll actually use and in my opinion the fewer, the better. A streamlined toolkit keeps your systems clean, reduces overwhelm, and helps you stay focused on running your business (not wrestling with software).

Want to see what tools I recommend? Check out The Toolkit to explore my go-to picks for small business owners.