Accounting software integration examples and benefits CFOs should know

4 challenges of accounting software integration

Accounting software integration offers substantial benefits but is not without its challenges. Here are some of the key barriers to effective accounting software integration.

Inconsistent data formats

Enterprise systems often use different formats when recording data, which can make it difficult to map information. For example, a company's CRM system might track a customer's multiple store locations as separate entities, but they are then aggregated as a single customer in the accounting software.

This mismatch will substantially complicate integration.

Legacy systems with weak or non-existent APIs

Working with data from older software that was not designed for flexible, real-time integration can be difficult.

For example, older systems or on-premises applications and hardware often use obsolete formats and offer limited access through application programming interfaces (APIs).

Spreadsheet-based systems

Most organizations have developed methods of tracking information outside their formal systems. That data is frequently stored in spreadsheets or homegrown databases.

Storing data in spreadsheets or homegrown databases makes it difficult to systematically and consistently access and integrate that information. It is challenging to obtain a comprehensive view of the organization's operations because spreadsheets are often isolated and cannot be easily integrated with other data sources.

Lack of standardization

Accounting software integration often involves exchanging information with external trading partners. But integration can be expensive and time-consuming when the organizations exchanging data use different software systems. For example, if some customers use different procurement systems, it can be challenging to automate the flow of orders into an organization's accounting system in a cost-effective way.

CIOs should evaluate whether vendors offer prebuilt integrations, which minimize or eliminate the need for custom development. They should also look for open APIs that offer direct, flexible connections, including integration platform as a service (iPaaS) connectivity for scalable, cloud-based support.

CIOs should assess prebuilt integrations and APIs for data security, audit trails and error handling capabilities. This functionality is necessary for avoiding security vulnerabilities and ensuring data integrity.

4 examples of accounting software integration use cases

Here are some examples of accounting software integration use cases.

Integrating CRM orders

One of the most common use cases involves integrating orders from a CRM system with accounting or ERP software. For example, NetSuite, a cloud-based ERP system, connects with Salesforce's CRM platform using prebuilt connectors. The connection automates the flow of customer data and new sales orders, with invoices and payment data often syncing in the CRM.

Streamlining order-to-cash processes reduces the need for manual data entry and can help improve customer service and accuracy and speed up revenue recognition.

Integrating payroll data

Larger organizations frequently use HR software to manage payroll, benefits and employee data, which can then be integrated with accounting and ERP systems. Many organizations outsource their HR functions to external service providers such as ADP or Paychex.

Integrating payroll expenses with accounting can help companies quickly and accurately record costs and liabilities to the general ledger.

Integrating financial data

Today, even smaller organizations are using analytics platforms to gain more insight into their business processes. Accounting software vendors are providing prebuilt connectors that enable automated integration.

For example, Sage's accounting software connects to Microsoft Power BI, enabling companies to analyze and visualize transactional data. Having access to that information enables finance teams to create dashboards that track revenue trends or forecast expenses.

iPaaS integration

Cloud-based integration platforms such as Boomi enable connections with a range of different applications.

For example, QuickBooks users can use Boomi to synchronize data with various e-commerce platforms, inventory management systems or custom applications. iPaas enables integration across multiple systems, which can help break down operational silos and improve visibility into business processes.

Architecture models

Choosing the right architecture for accounting software integration is critical. CIOs and others involved in choosing the architecture should consider their organization's need for flexibility, the cost of building and maintaining integrations and the potential effects on compliance.

Direct integrations involve connecting systems using APIs, which results in low-latency, point-to-point links that are ideal for simple, high-volume data exchanges. However, direct API integrations can be expensive to build and complex to manage.

Middleware acts as a software layer, facilitating communication between different systems without direct dependencies. Middleware can be a good fit for on-premises systems but might require more maintenance than cloud-based alternatives.

iPaaS platforms such as Boomi, MuleSoft and Workato offer a more agile, cloud-native approach. Many offer user-friendly drag-and-drop interfaces and include prebuilt connectors as well as monitoring capabilities. Because they're cloud products, iPaaS platforms can be deployed quickly and offer good scalability.

iPaaS platforms are likely an attractive option for CFOs because of their relatively low costs and support for hybrid environments.

Key takeaways for CFOs

Many organizations are using iPaaS platforms to enable integrations. According to Gartner, the market for iPaaS platforms grew by 23.4% in 2024.

Integrating accounting software with business intelligence tools can help enable the analysis of financial information, allowing leaders to make more data-informed decisions. Also, automated integration can lead to greater agility for growing organizations.

James Kofalt spent 16 years at SAP working with SME business applications and was a product manager for integration technology at Microsoft's Business Solutions division. He is currently the president of DX4 Research, a technology advisory practice specializing in ERP and digital transformation.