52 Weeks of FOS

Technology Stack – Week #28 of The Financial Operating System®

Illustration of a financial technology stack integrating accounting, automation, and payment processing tools.
August 11, 2025 by Calvin Wilder in Articles

This chapter focuses on the Technology Stack, which forms one of the three critical components of the Finance Stack, alongside People and Process. The Technology Stack encompasses the tools and systems businesses use to manage their accounting and financial operations efficiently.

Core Components of the Technology Stack

  1. General Ledger (GL) System:

    • The foundation of the Technology Stack.
    • QuickBooks dominates the U.S. small business market, with around 90%+ market share.
    • QuickBooks is recommended for most businesses due to broad feature set, countless third-party integrations, and wide familiarity among bookkeepers and accountants.
    • Alternatives might be appropriate for unique business needs but can result in higher costs and limited talent availability.

  2. Ancillary Systems:

    • As businesses grow, they often require additional systems to manage parts of the finance process.
    • Ancillary systems should integrate seamlessly with the GL to ensure data entry is performed only once and is synced throughout the Finance Stack.

Key Technologies in the Stack

  1. Accounts Payable (AP) Automation:

    • Streamlines vendor billing and payments, often referred to as the “Procure to Pay” process.
    • Systems like Bill.com are popular for automating AP, reducing human error, and increasing efficiency.

  2. Accounts Receivable (AR) Automation:

    • Simplifies customer invoicing and collections, sometimes called the “Quote to Cash” process.
    • Diverse tools exist for different business model and industries to help manage invoicing, collections activity, and payment processing while integrating with QuickBooks.

  3. Employee Expense Report Automation:

    • Links employee expense reporting with credit card accounts to manage reimbursements and documentation.
    • Benefits include fraud mitigation, tax compliance, and streamlined reporting to integrate expenses with accounting systems.

  4. Professional Services Automation (PSA) Software:

    • Designed for project management, PSA systems help businesses track tasks, budgets, staff utilization, and timelines.
    • Harvest is a popular, affordable PSA system for growing service businesses.
    • PSA systems with integrated GL components are generally discouraged due to poor general ledger performance.

Benefits of a Well-Designed Technology Stack

  • Efficiency: Reduces duplicate data entry and streamlines processes.
  • Accuracy: Minimizes human error and ensures data consistency.
  • Scalability: Supports business growth by efficiently supporting increasing transaction volumes.
  • Compliance: Facilitates adherence to tax and audit requirements.

Takeaway

A well-constructed Technology Stack supports efficient, accurate, and scalable financial processes. It enables businesses to automate repetitive tasks, integrate data systems, and focus on strategic decision-making.

Next Step:

Business owners can self-implement The Financial Operating System. Chapters are available to download at smartbooks.com/resources or you can buy the whole book from Amazon (the marketing firm version or the general business version).

If you would like assistance with implementation or would like to accelerate results for your business, please contact author Cal Wilder at cwilder@smartbooks.com or book a free consultation with our team directly using this calendar link.

Written by Calvin Wilder