In recent years, open banking has revolutionized how businesses and individuals access their financial information. As a result, open banking may sometimes be seen as a threat to accounting software. However, it is actually an enormously beneficial tool for accounting companies.
When the two are paired, they make accounting smoother for both the client and the accounting agency. Here are some of the many ways accounting companies can benefit from using an open banking API.
Open banking has made it easy for accounting platforms to import financial data into their systems efficiently. Many accounting companies still have to dump data from multiple bank statements into spreadsheets and then manually enter it into their accounting software. While manually inputting the data may not be so bad for smaller businesses with only one account, the process can get messy for businesses with multiple bank accounts.
In general, manually importing data manually is extremely tedious, redundant, and time-consuming. Plus, with so much data being manually extracted, it also allows for the possibility of making mistakes.
By automating your process with open banking, you can simply allow the software to pull in all the necessary data. Open banking also allows for real-time data, making it so that the accounting information is constantly updated and formatted in a standardized way.
With the help of open banking, accounting software can easily compile all financial accounts into one place. Not only does this make it easier for the clients to see their financial information all at once, but it also makes accounting easier in general.
For instance, analyzing the data becomes much simpler when all of the information is presented at once. That way, there aren’t any hidden pieces, and there is no need to switch between accounts to fully understand the client’s financial situation. Having all the data in one place improves efficiency and allows clients and accountants to have a better understanding of the financial situation at all times.
Traditionally, importing transaction data from bank accounts can be very time-consuming. The data is usually presented in raw, unfiltered data that later needs to be sorted to be useful. When the client has multiple business bank accounts, combining the data can also be difficult since each bank will have different formats. With an open banking platform, the data from multiple bank accounts will be combined into an easy-to-understand format. This improves efficiency while also allowing accounting companies to cut down on costs. With open banking, accounting companies can also look more organized and ensure the customer’s needs are easily readable and ready in a timely manner.
Automating the import of bank data, viewing all financial accounts in one place, and making payments directly from your accounting software is a significant game changer for accounting companies. Don’t believe us? Try it out for yourself with Geneqty!
Geneqty is an open banking platform that enables accounting companies, credit unions, and community banks to access and share financial data. With Geneqty, you can embrace innovative technology and utilize it to make your business faster and more efficient. Once you switch to an open banking system, you won’t be able to go back.