Go to the marketplace of any accounting software company (e.g. QuickBooks, Sage Intacct, Oracle NetSuite or Microsoft Dynamics 365) and you will find hundreds of complementary software applications. This demonstrates the success of the cloud-based, best-in-class model that companies like Sage Intacct pioneered as well as the relative ease of bringing a software application to market.
The beauty and power of the best-in-class model is that CFOs and controllers can choose applications – from ERP and AP/AR automation to budgeting and planning and sales tax management, to build out their own best-in-class suite. The success of this approach is based on an underlying promise – the ease and simplicity of data integration, primarily between cloud-based applications so that data across the applications can be shared and kept in synch. This promise is particularly appealing to small- to mid-sized organizations that may not have access to IT resources to build connections across the applications they chose to use and desperately want to eliminate the manual steps involved in CSV downloads and uploads.
And this is where the story gets interesting and to some perhaps frustrating.
Here are some reasons why:
- You may use legacy or proprietary applications that do not have an open API or are not cloud-based. This may mean that to keep applications in synch still requires manual processes that are error prone.
- You may find the pre-built “connections” that come with your software applications do not support all the transformations you require. This may mean that you need to bring in IT resources or 3rd party consultants.
- You may make changes, for example to your GL accounts or dimensions, that cause errors to result when the integrations are run and that it is difficult to troubleshoot. This problem is compounded when you have multiple, point-to-point integrations running and again, may result in needing IT resources to resolve.
Obviously, this does not mean you should avoid integration or consider choosing an “all-encompassing” suite (there is no such thing.)
What is iPaaS and How Does It Support the Best in Class Model
Instead, the answer lies in a solution that has emerged specifically to address the challenges listed above. This solution is commonly referred to as iPaaS or integration platform as a service. iPaaS solutions allow you to build, manage, and maintain integrations and workflows through a single platform, giving you a single view into all your connections. iPaaS can make it very simple to integrate say your ERP/GL (e.g. Sage Intacct, Oracle Netsuite, QuickBooks, or Microsoft Dynamics 365) to your budgeting and planning (e.g. Workday Adaptive or Vena) financial close (e.g. Blackline or Floqast), or CRM (e.g. Salesforce, Hubspot, or Sugar CRM) applications. And not surprisingly, there are many iPaaS solutions to choose from. It is likely that people in your company already use one or two solutions. Why? Because each bring unique strengths and capabilities. Learn more about DataBlend's iPaaS solution.
iPaaS or cloud-based integration can help CFOs and controllers in three main ways:
- Ensure timely and accurate reporting by keeping data across systems is in synch. Integrations can be set-up to run on schedule or initiated by an accounting or finance resource on-demand, for example, when preparing information for a board meeting or auditor.
- Eliminate manual CSV or Excel extractions, transformations, and uploads and the errors that can result. Even if you are taking advantage of out-of-the-box integrations, it is common to see accounting and finance teams manually processing some data movement between applications because the software publishers’ standard connections do not meet unique all your requirements.
- Maximize the value you expect to extract from the systems you have in place. It is likely that your accounting and finance team relies on at least six different applications to fulfill its responsibilities to the organization. If data is not flowing seamlessly and securely, CFOs and controllers cannot possibly produce accurate reports, make timely decisions, or keep customers, partners, or vendors satisfied. All expected benefits promised by the software providers, but unattainable without robust integrations.
So, given that there many iPaaS solutions to choose from, an important question is which one is right for accounting and finance? Keep in mind that using multiple iPaaS solutions in one company is not necessarily a problem. For example, one iPaaS solution may have standard connections and pre-built, workflow templates for the applications that accounting and finance rely on, making implementation quick and easy, while another iPaaS provider might have standard connections for all the applications being used by marketing.
What to Consider When Evaluating iPaaS Solutions
As a guide, when considering different iPaaS or integration options for the accounting and finance team, make sure to ask each provider the following questions:
- Do standard connections for the applications your company are using already exist? If not, how long would it take to get them up and running?
- How much will it cost to implement the connections and data workflows/transformations that you need to support your operations? What kind of transformations can you handle? Don’t be afraid to provide multiple use cases – from the basic to the most complex and ask how each would be handled.
- What technical experience, if any, is required to build and/or update workflows? You should ask to see how connections and workflows are built and assess the ease or difficulty your team would have maintaining or creating new workflows.
- What type of support is available to troubleshoot issues? For example - when data does not tie out? Who will investigate, fix and balance the data?
- How much investment is being made on integrations between the applications that CFOs and controllers rely on? What does the roadmap look like for additional integrations for finance and accounting-related applications?
Integrating your financial ERP/GL to applications like CRM, budgeting, financial close, and HCM is critical to achieving objectives and driving performance of your organization. Integration done right, with the right provider, simply makes life easier and worry-free. So, choose a provider that makes you feel at ease, speaks your language, and understands debits and credits.
DataBlend is an iPaaS solution provider specializing in integrating the everyday financial applications of CFOs, controllers and financial team leaders. Please connect with us if you'd like to discuss your current best in class suite of applications and how DataBlend can help you maximize integrating your systems. Contact us.
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