CFO tech stack essentials: Scale your finance tech stack for business growth

Apr 05, 2024

Without data, all that’s left is opinion. Finance teams swear their decisions are always data-driven. But many small businesses only have data chunks that are uncategorized and disorganized.

This cannot be trusted due to its misleading nature. The company can be big or small, but the accounting data is always high. Loan payments, credit card spending, payroll data, expense reporting, and there is more.

Finance experts need reliable and easy-to-digest data and advanced analytics to process this.

The CFO tech stack of recent times is built with strong concepts like AI, ML, and RPA. Along with that, they also need a streamlined flow of data to understand their financial state.

What is a scalable financial technology stack?

The finance tech stack is the collection of tools, SaaS finance applications, and other software to carry out the financial processes of a company.

This is necessary for finance teams to predict and forecast future expenses and plan budgets as per that. A scalable solution in any aspect means software that can support a company along its growth.

It can withstand an increased flow of data and provide the same support. A scalable finance tech stack serves the same way in handling an increased in-flow.

Hence, your finance experts won’t struggle to find new solutions to support the excess load of information.

What is the tech stack in FinTech?

Finance Tech stacks or fintech tech stacks are the building blocks that are used to gather, research, and optimize the financial data of an organization. The term fintech denotes the combination of finance and technology.

This is a wide term that denotes all kinds of technological tools and use cases to modernize banking and finance. Fintech tech stack that modern SMEs use are:

• Enterprise resource planning (ERP)

• Accounts payable and receivable

• Payroll

• Budgeting and spend management

• Bookkeeping

In short, these are the technical pillars that construct the financial infrastructure of a company. 

Why is it essential to have a scalable finance tech stack?

Small businesses that consider finance tech stack investment as unnecessary should evaluate their current accounting practices. Though it requires additional money to automate financial operations, it’s worth considering the outcome.

1. Gives better visibility and transparency

Finance teams require real-time expense data to make informed decisions and predict cash flow.

Having an open and scalable tech stack is favorable for them as they have every data at their fingertips. So, they can make growth models and expense projections that are accurate and serve real purposes.

2. Adjust to market conditions

In a dynamic market condition where ups and downs are so frequent, business needs time to respond positively and save themselves. Tech stack gives them the liberty and flexibility to adjust to the situation.

Scalable fintech tech stacks allow them to take up new challenges and gain an edge over the competition. Automation also quickens new product launches and helps businesses stay ahead in capturing new markets.

3. Improves cash flow and reduces fraud risks

Cash flow is always unpredictable when the list of clients and vendors outgrows in number. This can be smartly tackled with the right CFO tech stacks. They know when and how exactly the money goes in and out.

And thus, predicting cash flow in different instances in the future is made possible. With the right level of control given to involved teams, fraud and risk detection can work in your favor. 

Which is the best way to choose a scalable finance tech solution?

The fintech tech stack is not just needed by the finance team but by others too. Hence, equal contribution and involvement from everyone are required to kickstart the selection process.

1. Analyze your current financial systems

Start with understanding where you stand right now. Go through the current practices your company follows. Involve the right teams and get their opinions.

The feedback and pain points they share about the current financial systems can drive your search in the right way. Analyze what’s not working in your current system and what can be improved with the inputs you got. 

Connect the accounting processes (ERP, AP, AR, etc.) and their relevant tech stack and repeat the same process for every section. Then it’s time to review the future plans and goals.

Take into consideration any growth stunts your company has planned for the future. This is to make sure you select the right scalable finance tech stack. 

2. Creating a strategy for automation

You might have a semi-automated or manual accounting process right now. Think and plan a strategy to fully automate your financial system.

Go over the output from previous steps to determine the areas that need automation. For instance, expense reporting is an area that needs to be automated. Start with automation for this sector along with others on the list.

Then list down your requirements for automation for each sector that will help in the vendor selection process

3. Finding the right provider

Now for the sectors that need automation, start finding the right CFO tech stack. List down three to five vendors for each required category. There are many factors that might help you narrow down your choices.

Finding a suitable provider is mandatory for uninterrupted automation. Cost is an important criterion and it should be within your budget. As you are going to implement an out-and-out fintech tech stack solution, cost plays a role in decision-making.

4. Choose a scalable solution

The chosen software must travel with you for a long time even if you face sudden growth. The tech stack shouldn’t have a problem with handling more amount of data. If they have upgraded plans available, that has to notice too.

5. User-friendliness

The users of the tech stack may or may not be technically sound due to their financial background. Only an intuitive dashboard can help them access it without complications or delays.

If the vendor has a trial period, it’s better to utilize that to determine if your employees are comfortable with it.

6. Compliance

The finance tech stack must help you adhere to auditing standards and regulations imposed by your local bodies. Also, it must provide digital audit trails that can be used as expense proof.

7. Integration with other systems

Connection with other systems should be there to minimize manual tasks. The app must integrate with other common accounting applications.

And if they have an open API to connect with another tech stack, they should provide clear instructions on how to integrate.

8. Good customer support

Operational issues are common with technical and SaaS programs. There must be 24/7 support available for you to help you out of this.

Keeping the issue unresolved will affect business continuity. Hence the availability of customer support officials and account managers must be noticed.

9. Data insights & analytics

Receiving insights about spending will further help the finance teams to comprehend their spending and make solid expense planning. If it has analytics, find what kind of information it provides. 

Seamlessly manage your finances with Volopay

For a strong CFO tech stack, your accounts management should be equally powerful. Include Volopay to your list of tech stack and automate accounts payable and records maintenance.

Your entire business expense management can be streamlined and organized in a way to support finance teams.

They can utilize the AP output to draw budget-based decisions. Volopay has a centralized dashboard where you can make payments and track them in real time. 

It has every tool you need to manage accounts receivable like credit cards, business accounts, reimbursements, departmental budgets, custom workflows, etc.

You get to view advanced spend analytics and insights about your expenses in a presentable way. Volopay can also integrate with other common accounting applications like Zoho, Quickbooks, and Netsuite.

The major point that must be reiterated about Volopay is that it’s scalable. It is suitable for companies of any size and can stand alongside your business when it scales. 

Automate your business finance operations with Volopay