Why your FinStack feels like waste

As startup founders,

Why does it feel like we’re constantly spending time and money on our Finance Tech Stack

(Quickbooks, Bill.com, Stripe, Ramp, Gusto, Harvest, Expensify, Betterment, Deel, Carta, Airtable, etc. etc. etc.)

But for all that cash and effort,

• What are we actually getting?

• Where is the Return on Investment?

• When do we ever really see something good come out of these tools?

Here’s why it feels this way:

As CEO, you’ll likely only see about 10% of your finance tech stack in action.

(Primarily reporting tools, credit cards, and maybe some benefits software.)

The remaining 90% is the technical infrastructure that supports the output of accurate reports, payments, invoices, inventory, hours, and financing activities.

And for the most part, as CEO, you probably won’t be able to see if that infrastructure is exceptionally good

You’ll only notice it if something is wrong:

• Slow reports

• Inaccurate numbers

• Incorrect invoices

• Missed payroll

• Or worse.

So how do you make good tech investment decisions in finance?

✔ Build a finance team you trust and develop a bias for tools they want.

✔ Focus on outcomes. When evaluating tech, ask vendors or internal advocates about the impact of onboarding the tool. Prioritize solutions that alleviate current bottlenecks.

✔ Ask an external expert (shameless plug: like me!). Especially during times of growth, a diagnostic audit of your finance software and processes can be invaluable. Choose a provider who doesn’t accept kickbacks from software companies to ensure unbiased recommendations.

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