Are you a business person? If you are then this is the complete financial stack for your business. All you have to do to get this piece of information is to continue reading the content of this post from beginning to end.
The Complete Financial Stack for Your Business
In this era of remote networking, building a financial stack for your business with the right Fintech tools has never been more important. Both accounting and finance teams can now make use of the best tools in digitalizing their regular processes and systems in order to enable mobile access.
Just in case you are wondering what the term Fintech means, here it is. The term Fintech is the one used for software companies that help provide both accounting and finance products and services to various organizations. With that being said, what is a Fintech stack?
What Is a Fintech Stack
A Fintech stack or a financial technology stack is a group of Fintech tools that are connected and are used to run, support, improve and also optimize finance, accounting, and the operational processes available ta an organization.
The Importance of Fintech Stack
The Fintech industry as you should know at the moment is rapidly growing and financial technology is becoming more vital, important, and crucial to a CFO’s list of portfolio of tools. Gone are the days of solely relying on paper documents and Excel spreadsheets.
Now, accounting and finance teams are now replacing their technology toolkits to utilize value-added services such as insights and reporting, while in the process automating as many processes as possible. While Excel on the other hand is still widely used for some processes such as financial modeling, faster tools can help to improve data capture and other workflows.
As back-end processes continue to evolve with the rise of technologies, CFOs generally need to know what tools to invest in and where to prioritize their budget. This is very important to the growth of every business today. Organizations need more than just one tool to help keep track of daily operations and their smooth running. Also, various companies require different financial tools all depending on the sector, stage of growth, and business goals.
How to Select My Fintech Stack
This is easy but you should carefully select your Fintech tools. You should assess every Fintech tool you are going to be utilizing against seven criteria which I will be making mention here in this post. Personally, I recommend that you select tools that meet up to a minimum of five criteria and if they meet all of the seven attributes, that’s great! The seven criteria include;
- Mobile access
- And strategic value.
What Is the Core Fintech Stack
The core categories of a Fintech stack include;
- Accounting ERP software
- Spend management systems
- Expense management systems
- Accounts receivable and billing systems
- Accounts payable and payment systems
- Payroll systems.
These are the core Fintech stack tools you should consider for your business and organization today. And just in case you are wondering about the difference between spend management and expense management.
While both may sound similar they are different actually and play different roles here. Expense management software helps to process and reimburse employee expenses from credit cards such as out-of-pocket business expenses and also travel and entertainment.
Spend management on the other hand is the evolved version of buying and procurement software that helps businesses to manage costs that go beyond COGS and employee expenses.