Managing financial processes effectively is critical, particularly within a start-up or scale-up where resources are limited.

A strong finance tech stack ensures efficiency, accuracy, and scalability for finance teams, allowing them to focus on value-added tasks like business partnering and trend analysis, rather than being bogged down by financial operations.

Every six months, I review and update the finance tools and finance software that I recommend to our clients.

The September 2024 update introduces new tools and improvements in areas such as accounts payable, accounts receivable, payroll, and cashflow management, among others.

See the full explanation in the video below.

Key Considerations Before Choosing Finance Tools

1. Review Existing Workflows: Before implementing new software, it’s crucial to evaluate current processes and identify inefficiencies. This will help in prioritising which processes require automation and improvement.

2. End-to-End Process Review: Software should complement a well-structured process, not mask existing problems. If you automate a flawed process, it may lead to bigger issues down the line.

3. Consider Growth and Scalability: Any finance tools or systems implemented must accommodate your company’s growth, whether you’re doubling revenue or scaling operations.

Recommended Finance Tech Stack (see full explanation in video below)

• Ledger: For early-stage start-ups and mid-size businesses, Xero is the go-to software, while NetSuite is ideal for scaling companies.

• Accounts Payable: Tools like Dext (for UK clients) and Bill.com (for US clients) automate invoice processing. ApprovalMax aids in managing approvals, and Telleroo supports batch uploads in the UK.

• Accounts Receivable: Chaser helps with credit control by automating communication, while Chargebee is used for SaaS billing.

• Payroll & Expenses: BrightPay and Gusto are recommended for UK and US clients, respectively. Spendesk, Pleo, and Revolut streamline expense management.

• Reporting and Budgeting: Fathom and Spotlight are the top choices for financial reporting and consolidation in smaller entities. For budgeting, many still rely on Excel, but we are exploring new tools like Casual and Mosaic for larger companies.

Updating and maintaining a robust finance tech stack is critical to the smooth functioning of any start-up or scale-up’s finance function.

The finance tools mentioned above not only help with day-to-day tasks but also ensure long-term scalability and efficiency. As always, remember that simply throwing software at a problem won’t fix underlying process issues—review, refine, and then automate for the best results.

Looking to advance and quicken your finance career? Follow the steps in our Framework below:

1. Sign up to our next workshop.
2. Work with me in the Financial Leadership Foundations course  that includes monthly Q&A sessions where we can discuss all of your questions and how to apply your learnings to your current role. 
3. Download the Advanced Management accounts course to showcase your skills as a finance leader to the Founder, leadership team and the Board.
4. Book at FLF Career Planning session.