Since going mainstream in recent years, the widespread adoption of Open Banking and Open Accounting software has greatly transformed the accessibility of financial data, as well as improving the ways it is analysed. These advancements have provided both businesses and their financial advisors with transparency and control in the way that data is exchanged and shared, and has also facilitated the enhanced efficiency that financial technology (Fintech) can achieve when aggregating large sets of figures. 

The progress in accounting tools has mirrored this transformation, expanding far beyond traditional bookkeeping, bringing accountants an invaluable source of financial insights and foresights. Modern accounting software now also integrates seamlessly with Open Banking platforms enabling real time data capture and predictive modelling. These tools empower accountants with the ability to offer forward thinking guidance to their clients which is backed by presentable data. 

Going forward, we will look at Open banking, and how its collaboration with sophisticated accounting tools like Pulse are ushering in a new era for financial management. We will also examine the advantages of this integration for accountants and their clients, and learn how their adoption can improve the range of services that accountants have to offer. 

The Perks of Open Banking 

Open Banking has been a fintech breakthrough, and has redefined the way financial data can be accessed and shared. Not only does it allow banks and other financial institutions to – on consent of the customer – provide third-party providers access to financial data, but it also means data can be shared between users and their advisors for financial analysis and feedback. This ease of use, combined with the transparency that Open Banking is built around has made for a vastly improved customer experience, and has further invigorated competition within the financial services industry as brand’s seek to secure the next fintech innovation. 

The technology of Open Banking is also underpinned by stringent regulatory frameworks, with data being transferred through secure application programming interfaces, or APIs. Between the PSD2 in Europe, the Open Banking standard and FCA oversight in the UK, as well as overarching data protections regulations, Open Banking ensures that financial institutions adhere to strict standards that customers can rely on and trust in. With this trust and security comes access to a real-time view that benefits both businesses and the accountants that provide a service to them. 

Open Banking for Businesses 

Businesses benefit from Open Banking enormously due to how well the fintech streamlines financial processes, enabling personalised financial services and delivering a comprehensive view of a company’s finances through the aggregation of data from as many sources as desired. For financial institutions offering Open Banking, this also provides them business as the tools they offer as a service bring in more customers, benefiting the finance sector and other industries in tandem. 

Open Banking for Financial Advisors 

Open Banking grants advisors, and particularly accountants who are on the front line of most business’s financial decisions, remote access to their client’s real-time data which can be viewed to help inform better business decisions and allow them to give proactive advice. These fintech tools, combined with other accounting software, also reduce an accountant’s workload by an enormous amount, meaning they can allocate more time to working with their clients, or generally improving their own accounting efficiency in the workplace. 

The Role of Advanced Accounting Tools 

There are numerous accounting tools on the market today, and whether they are proprietary software like Quickbooks or Xero, or an open source bookkeeping solution, they have significantly impacted the accounting profession for the better. By leveraging financial data from various sources, though most prominently from Open Banking platforms, these tools for accountants can provide comprehensive financial insights into a client’s health. Through the predictive analytics that Open Accounting provides, accountants can also help with a business’s strategic decision-making, basing their advice on solid, easy-to-understand numbers. 

Modern accounting tools have vastly expanded an accountant’s toolkit, and cut away much of the chaff that once restricted their time. The way financial data is presented through fintech also allows advisors a view into the trends of their client’s data in ways that were not visible through traditional methods. 

Well presented financial data through intuitive dashboards offer modern ways to assess critical metrics such as financial forecasting, risk assessment, and the all important strategy planning. By leveraging Artificial Intelligence (AI) and Machine Learning (ML) technologies, fintech also has the power to predict future financial trends, and preemptively provide its users with actionable insights to avoid hurdles or capitalise on opportunities, further empowering accountants to perform in the role of advisor. 

Pulse: A Case Study in Integration 

By integrating Open Banking and Open Accounting technologies with a fintech tool like Pulse, financial management effectively becomes automated through the way Pulse utilises AI to aggregate data and deliver financial insights to its user, with the ultimate aim of leading to an improved cash flow. The synergy between these technologies empowers accountants and their clients with a comprehensive, up-to-date view of a business’s health, and through Pulse’s ability to provide simplified data visualisation, even the least tech savvy individuals can benefit. Pulse achieves its results through the following: 

  • Integration with Open Banking: Once permission is granted, through the use of secure APIs, Pulse can connect to its user’s banks via Open Banking, ensuring a secure gateway is established for sharing financial data. Our fintech then pulls transaction data, account balances, and other financial details directly from the bank, eliminating the need for manual data entry and ensuring that Pulse’s numbers are always fresh and accurate. 
  • Leveraging Open Accounting: Open Accounting platforms such as Xero or Quickbooks, similarly to Open Banking, also provide a scope of financial data, including expenses, invoicing, and payroll, to name a few. Pulse will integrate these platforms to pull in even more data, creating a comprehensive financial picture that can be presented to its user in an easy to understand format. This allows accountants and their clients to view their financial data in one place, making it easier for them to analyse and make informed business decisions. 
  • Data Visualisation: Once Pulse has aggregated all the data its user has granted it permission to, it visualises it all through bespoke and user friendly dashboards that generate reports to provide actionable financial insights. Accountants and their clients will receive monthly reports into their inbox covering turnover, profit and loss, margin and liquidity, each of these metrics, once aggregated from fintech sources, are displayed through bar and line graphs, breaking down the numbers and making otherwise confusing data accessible. 

Anyone with access to Open Banking or Open Accounting can sign up if they are seeking a simple yet groundbreaking way to combine and display their vital financial data with Pulse. 

Benefits for Accountants and Their Clients 

By integrating Open Banking or Open Accounting platforms with a tool like Pulse, an accountant can significantly amplify their capabilities as an advisor. Once equipped with access to the financial insights that Pulse produces, accountants can view precise financial forecasting, and will ensure any advice they do give is timely and based on the latest information. It means trends can be acted on, both good or bad, and clients can be steered clear of potential pitfalls or make gains on emerging opportunities. 

Open Banking and Open Accounting tools also foster a transparent and collaborative relationship between accountants and their clients, being achieved by how they are shared and accessed, as well as the financial insights they provide. 

Parting Thoughts 

Incorporating Open Banking and accounting tools like Pulse enhances transparency and strengthens the working relationship between accountants and their clients. Looking forward, finance professionals will doubtlessly need to embrace these tools if they want to stay competitive due to how drastically they elevate their services and the insightful advice they can deliver, and is why it will be essential for accountants to adapt to these innovations if they intend to continue offering sound business guidance. 

Empower Yourself and Your Clients with Pulse 

Pulse can effortlessly connect with your client’s existing Open Banking software and Open Accounting programs, ensuring the secure retrieval of financial information which is displayed on our intuitive dashboard. With the help of advanced AI algorithms, Pulse evaluates the data and presents valuable financial insights via easy to grasp graphs. Pulse is completely free to use, and every month, both you and your clients will receive detailed data analysis and performance metrics via email. Don’t hesitate – join Pulse today and gain a competitive edge in your business operations!