When I started my first business in the mid ’90s, online banking wasn’t a thing, and software tools were rudimentary and pricey. But luckily I was early to Microsoft Money with dial-up access to download my bank transactions. It wasn’t much, but eliminating data entry was a big first step.
Fast forward 30 years and today’s small business owners have access to financial technology tools that used to be available only to large firms with dedicated accounting and treasury divisions. The challenge is not finding affordable software, it’s making a decision and then following through with onboarding and ongoing maintenance.
This so-called finance stack is a set of financial tools that work together across banking, accounting, payments, payroll, financing, and cash management. The goal is to create a system where banking, accounting, payroll, payments, financing, and reporting work together. And the easier it is to use, the more likely you will put in the time necessary for it to do it’s job.
For SMB owners, the right finance stack can improve profits, reduce financial anxiety, while at the same time reducing time spent on back-office operations.
The key parts of the finance stack:
- Business Banking
The bank account is the foundation. Many SMBs use digital banks and fintech platforms that connect with accounting and payment systems. - Accounting
Accounting platforms like Intuit QuickBooks and Xero connect banking, invoicing, payroll, and expense systems into one reporting platform. - Bill Pay & Accounts Payable
AP tools help businesses manage invoices, approvals, and vendor payments while reducing bookkeeping work. - Payroll & HR
Payroll providers combine payroll, tax filing, benefits, contractor payments, and HR tools into one platform. - Expense Management & Corporate Cards
Companies like Ramp, Brex, and BILL help businesses manage expense tracking, approvals, reimbursements, and spend controls. - Cash Management & Yield
SMBs are managing idle cash through business savings accounts, treasury tools, and cash management platforms. - Financing & Lending
Lenders connect with accounting and banking platforms to support underwriting and funding for SBA loans, working capital, and equipment financing. - Insurance
Insurance platforms help SMBs manage business liability, cyber, workers compensation, and property coverage online. - Card & Payment Processing
Processing payments is the lifeblood of most retail businesses
o Top 7 Payment Processors for Small Businesses
