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Your weekly go-to guide to transform your finance function into a strategic powerhouse.

Welcome CFO Techstack Community 👋,

In this week's newsletter, we feature Matt Flanagan, Managing Director at BlueHub, with his top tips on how to get the most out of your tech stack.

 

From evaluating metrics to blueprinting a tech stack overhaul, Matt’s advice will help you optimise your systems and empower your team for success.

 

Want to hear more from Matt? Catch him at Stacked in London on 12th September!

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FEATURED ARTICLE

Optimising your tech stack

A guide for CFOs

Matt F-1

If you’re reading this, you’re probably thinking about how to get the most out of your tech stack. As someone who’s been in the trenches with companies tackling these challenges, I’ve got some tips and insights that can help you make sure your tech is up to the task.

 

Is your tech stack fulfilling its purpose? Here's how to tell

When it comes to evaluating your tech stack, metrics are your best friend. One of the first things to look at is how long it takes to get the data you need. If you’re stuck with quarterly data but you need it monthly, or monthly data when you need it weekly, that’s a clear sign your system isn’t cutting it.

 

Another big one is how happy your team is with the system. Regularly check in with your team. Are they finding the system easy to use, or is it a constant headache? Over time, what worked well at the start might not be meeting your needs anymore. Listen to your team; their feedback is gold.

 

Mapping out your integration obstacles

You know you’ve got integration problems if you’re getting different data from different systems or if you have to manually combine data from multiple sources. If you’re constantly moving data by hand from one system to another, your integration needs some serious work. 

 

Don’t stress if a full API integration isn’t possible—sometimes an automated CSV upload can do the trick. There are so many different levels of integration. I think we get hung up on the need for systems to be fully automated, and that's not always available for every business. The goal is to minimise manual interventions and make your data flow.

 

Blueprinting your tech stack overhaul

Planning a tech stack overhaul? It’s helpful to think of your tech stack as your processes. Your tech stack will magnify any inefficiencies.

 

Start by taking a hard look at your current setup. What’s working? What’s not? What’s downright frustrating? This will help you put together a needs analysis, which is crucial for figuring out what you want from a new system.

 

Don’t forget about your hardware. It’s easy to focus on software, but if your PCs and network are outdated, new software might not run as smoothly as you’d like. Make sure your hardware can support your new tech investments.

 

Your tech vendor scouting guide

One of the biggest problems we often come across is businesses showing up to a vendor with just one or two specific issues in mind, instead of laying out their full list of needs. So what happens is the vendor tackles those two problems, doesn't really dig into what else might be going on or what else they might need, and then we discover other issues down the line.

 

So the first thing you should do when selecting new technology vendors is start with your needs analysis and make sure the vendor can meet all your requirements, not just solve a couple of specific problems. And don’t just take their word for it—ask for demos. See how their solutions actually work in practice.

 

Do your homework. Check out their reputation, read testimonials, and if you can, talk to their existing clients or speak to partners like us. Understanding the true timeline and costs involved will save you from nasty surprises down the road.

 

Bridging your team's tech know-how

When you're rolling out new systems, getting the training timing right is crucial. We often see people jumping into training too early. They want to learn the system well ahead of time, but then they don't actually go live with it for another four to six weeks.

 

Schedule your training sessions closer to your go-live date. Make sure the right people get trained on the parts of the system that matter most right away. You don't have to know everything right from the start; focus on nailing down the key processes you'll need on day one of going live. After that, you can always schedule follow-up training for the other parts of the system that won't be as critical right off the bat.

 

Then you should definitely have a support mechanism in place. At BlueHub, we offer mandatory support for 30 to 60 days post-implementation, along with ongoing training plans. This ensures a smoother transition and better long-term adoption of the new system.

 

Lessons from tech stack revamps

At BlueHub, we’ve helped many companies revamp their tech stacks, and one big lesson is to prepare your team for the change. It’s easy to underestimate how much work goes into this. Make sure your team knows what’s coming and is ready to engage with the new system.

 

Another biggie is data cleansing. If you’ve been using the same system for years, there’s likely a lot of old data that needs to be cleaned up. Decide early on whether you’re going to migrate everything or just take a snapshot. Plan accordingly and set realistic timelines.

 

Finally, don’t underestimate the time required for a major system overhaul. It typically takes us five to seven months from start to finish. Setting realistic expectations can make the process much smoother.

 

Future-proofing your tech

When making decisions about your tech stack, think about your company’s growth aspirations. Make sure your new systems can handle increased transaction volumes and are compatible with both existing and future systems.

 

Think ahead to where you’ll be in three to five years. This will help you avoid costly overhauls and ensure your tech stack grows with your business.

 

Optimising your tech stack is an ongoing process that requires careful planning and monitoring. By focusing on key metrics, ensuring effective integration, choosing the right vendors, and providing adequate training and support, you can build a tech stack that enhances productivity and supports growth. Remember, a well-optimised tech stack isn’t just about technology—it’s about empowering your team and driving your business forward.

COMMUNITY EVENT

🎟️ Stacked

Xerocon for in-house finance teams

 

Don't miss the chance to hear more from Matt in our panel discussion Optimise Your Finance Tech Stack: Insider Strategies from Tech Stack Advisors.

 

Join this discussion at Stacked on 12th September in London, led by seasoned consultants who specialise in helping CFOs fine-tune their systems and processes. This panel delivers top-notch expertise and best practices for your finance tech stack.

 

Want to catch Matt's talk at Stacked? You can use his code MATT50 to grab 50% off Stacked tickets (get yours for just ÂŁ99 + VAT), or click here to auto-apply to checkout.

 

See you there! 👋

 

What is Stacked?

Stacked is THE event for in-house finance teams looking to:

💥 Build the best tech stack: A day to learn how to scale with Xero and leverage it’s ecosystem.

💥 Become a better in-house finance leader in one day: Inspiring talks that will open your mind, build your network and transform your finance function.

 

Get your Stacked tickets here.

COMMUNITY INSIGHTS

🎤 How I stacked it

Ryan Barnes, Managing Partner and Virtual CFO at TWIYO, shares his recommended tech stack

TWIYO is an early-stage corporate advisory firm that fundamentally believes the world is your oyster.

 

They empower entrepreneurship through a combination of programs designed to meet the distinct challenges of start-ups and scale-ups.

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Ryan told us, "I’m the Managing Partner at TWIYO, specialising in providing tailored CFO & Capital Advisory services to startups and scale-ups, helping them navigate complex financial challenges and unlock their full potential. On a day-to-day basis, I speak regularly with our portfolio of clients, solving the various complex (or sometimes simple) nuances in their finance function. We deliver board reports to all of our clients monthly and run their financial forecast program. With that context, and having worked with over 100 start-ups, we provide recommendations and guide the commercial orientation of the business, how to do that cost-effectively and ensure they are optimising their structure and any available grants. We also help prepare for and execute capital raise or sale transactions."

 

Here's what Ryan recommends:

  1. Employment Hero for Payroll: While I still fondly remember this as KeyPay, (and my browser tab remains the same), I've been a long-time user of Employment Hero. I hold the view that Xero's native payroll is fine but leaves a little functionality off the table—it also calculates the hours in a month quite strangely. I think it's worth the modest investment to have something that can work indefinitely, so the earlier you implement this the better. It also opens up the possibility to consider their HR suite. Plus, their support team is great. 
  2. Fathom for Reporting: Fathom is a really important system to us. Its functionality is more impressive than its warm aesthetic and they continually roll out new features. The ability to create varied, customised reports with automated commentary is critical for us. It also handles consolidations in a breeze. We often find ourselves speaking ad-hoc with clients and doing live-screen shares as a better way to view financials and trends. I think their forecasting is neat and getting better all the time and is a good suit for single-entity founder-led businesses, but we still sometimes find our way back into the comfort of a nicely formatted Excel spreadsheet.
  3. Hubdoc for Data Capture: I totally understand that this system has its limitations and that finance teams with more complex needs and approval workflows should look at other tools. But for the straightforward early-stage business, Hubdoc is a great way to cut your teeth in an automated AP solution. I give it an extra vote because it's free in the Xero subscription. I get a little sad when I hear that people, especially anyone in the profession, are not using something here, a real travesty. 
  4. Mayday for Intercompany: For full disclosure, I have not personally needed to be a user of this system. But I have helped a few clients navigate selecting Mayday as part of their process and I think what they are doing and the efficiency created is significant. I also think that the roadmap Mayday is building on will become an important asset in the future. I think for businesses using software it is good to get close to what they are working on, and how you can give feedback. It seems that they are in the same position as KeyPay and Fathom were almost 10 years ago, building something special and being eager to listen and help.

 

Keen to share how you stack it? Email to zoe@cfotechstack.com 

SPOTLIGHT ON

Xero for Groups: The 2024 Report

Created in partnership with Pleo, Joiin, Lightyear, Airwallex, Xero and Mayday, this report brings together the best Xero app experts with dozens of in-house finance leaders and professionals.

 

👉 Success stories from the companies currently scaling with Xero
👉 Context of the shortfalls of Xero & the ERP debate
👉 Recommendations for getting set up and tailoring Xero to your needs
👉 Insights from finance and Xero experts

 

Download now >

The ultimate guide to scaling with Xero (8)

NEW IN THE WORLD OF CFO SOFTWARE

🗞️ News from the stack-o-sphere

  • Causal released unfiltered roll-up columns, so you always see the full quarter/year/year-to-date, despite the monthly breakdown. See the latest updates.
  • ApprovalMax is beta testing comments in Xero history. When events occur in ApprovalMax – including approvals, rejections and added comments – they will automatically be pushed to Xero and recorded in the corresponding section in Xero history. Read the release notes.
  • Payhawk's new template builder can help you export expense data in the most efficient format. Find out all about the new builder and how to use it.

WHAT THE DATA SAYS

📊 Stat of the week

 

49% of key decision-makers agree digital transformation has had a positive impact on the workplace. 

 

Research by Pleo.

UPCOMING EVENTS

🗓️ Save the date

 

Webinar: Selecting an Inventory System for an e-commerce or Wholesale Business

Thu 8 Aug, 10:30am BST

Selecting, improving or integrating systems is hard! This webinar is designed to steer you through the vital steps of choosing the optimal inventory system for your e-commerce or wholesale business. Sign up here >

 

Webinar: Navigating the CFO tech stack: Strategic insights and opportunities for SME CFOs

Thu 8 Aug, 2pm BST

Ready to learn from industry experts about the latest tools and strategies that can transform your financial management and drive business growth? Your expert panel will provide actionable insights tailored for SME CFOs to help you navigate the complexities of the modern tech stack. Reserve your spot >

 

Webinar series: Xero for Groups: The App Advantage (APAC)

Thu 8 - Fri 23 Aug

Join us for this CFO Techstack webinar series to hear expert insights and real-world success stories that will help you unlock the full potential of Xero for your multi-entity business. Register now >

MORE OF THE GOOD STUFF

And lastly, our top picks!

 

🎧 Podcast: From Tech CFO to SaaS Founder with Rose Punkunus of Sudozi, ep. 37, CFO Yeah! by CFO Connect

📝  Article: How CFOs can build the most effective tech stack

😆  Joke: Who leads finance teams to battle? General Ledger.

Why not forward this newsletter to someone you think would enjoy it?🙏

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