Guide to Open Banking Data Aggregation for Accounting Firms

What You Will Discover:

Introduction

Did you know that open banking data aggregation can significantly reduce the time spent on manual data entry for accounting firms? According to a study by Forrester Research, automated data collection through open banking APIs can save businesses up to 2 hours per day on manual data entry tasks. This translates to a potential reduction of around 50-75% in the time spent on manual data entry, allowing accounting professionals to focus on delivering high-value services to their clients.

Finexer, as a leading provider of open banking data aggregation solutions, empowers accounting firms to streamline their processes, enhance data accuracy, and unlock new levels of efficiency. By leveraging Finexer’s cutting-edge technology, accounting firms can access real-time financial data, automate reconciliation processes, and gain valuable insights to drive business growth. With open banking data aggregation, accounting professionals can redirect their time and resources towards providing strategic advice, improving client relationships, and scaling their practices.

In this blog post, we will explore how open banking data aggregation, particularly through the use of open banking Account Information Service Providers (AISPs) like Finexer, is revolutionising the accounting landscape.

Understanding Open Banking Data Aggregation

• Open banking is a regulated framework that allows authorised third parties to access customers’ financial data from banks and financial institutions securely.
• Data aggregation involves collecting and consolidating financial data from multiple sources into a centralised repository.
• It combines these two concepts, enabling accounting firms to access their clients’ financial data directly from banks through secure APIs.

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The Role of Finexer in Open Banking Data Aggregation

• Finexer is a leading open banking AISP that facilitates secure and efficient data aggregation for accounting firms.
• As an authorised AISP, Finexer establishes secure connections with clients’ banks and retrieves financial data with their explicit consent.
• Finexer standardises the aggregated data across various banks, ensuring consistency and compatibility with accounting software systems.
• By partnering with Finexer, accounting firms can leverage the power of open banking data aggregation without the complexities of building and maintaining their own infrastructure.

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Benefits of Open Banking Data Aggregation for Accounting Firms

Automated Data Collection

• It eliminates manual data entry, saves time, and reduces errors.
• Finexer automatically retrieves financial data from multiple sources, including bank accounts, credit cards, and invoicing systems.
• Accounting professionals can focus on high-value tasks rather than tedious data gathering.

Real-time Financial Insights

• With open banking data aggregation, accounting firms gain real-time visibility into their clients’ financial health.
• Finexer provides up-to-date information on cash flow, expenses, and financial transactions.
• Accounting professionals can proactively identify issues, spot opportunities, and advise their clients promptly.

Enhanced Data Accuracy and Consistency

• Open banking data aggregation ensures the accuracy and integrity of financial data.
• Finexer retrieves data directly from banks, minimising the risk of errors associated with manual data entry or statement uploads.
• Standardised data formats facilitate seamless integration with accounting software, reducing data inconsistencies.

Streamlined Reporting and Analytics

• Open banking data aggregation enables the generation of comprehensive financial reports and analytics.
• Finexer provides the necessary data to create balance sheets, income, and cash flow statements efficiently.
• Accounting firms can leverage aggregated data to offer valuable insights and recommendations to their clients.

Improved Client Experience

• Open banking data aggregation simplifies the process of sharing financial information for clients.
• Finexer’s secure and user-friendly platform allows clients to grant access to their financial data effortlessly.
• Clients benefit from a streamlined onboarding process and reduced administrative burden.

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Real-World Applications of Open Banking Data Aggregation

Automated Bookkeeping and Reconciliation

• Finexer’s open banking data aggregation enables automated bookkeeping and reconciliation processes.
• Transactions from multiple accounts are categorised and synced with accounting software, reducing manual effort.
• Accounting firms can provide real-time financial reporting and ensure accurate and up-to-date records.

Cash Flow Management and Forecasting

• Aggregated financial data empowers accounting firms to assist clients with cash flow management.
• Finexer’s open banking data aggregation provides insights into cash inflows and outflows, enabling accurate cash flow forecasting.
• Clients can make informed decisions about investments, expenses, and working capital requirements.

Audit and Compliance Support

• Open banking data aggregation streamlines the audit and compliance process.
• Finexer provides a centralised financial data repository, making it easier for auditors to access and verify information.
• Accounting firms can ensure their clients’ compliance with regulatory requirements and accounting standards.

Advisory and Consulting Services

• Accounting firms can offer strategic advisory and consulting services by accessing comprehensive financial data through open banking data aggregation.
• Finexer’s data aggregation enables firms to analyse clients’ financial performance, identify trends, and provide data-driven recommendations.
• Clients benefit from personalised advice on financial planning, budgeting, and growth strategies.

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Winding Up

• Open banking data aggregation, powered by AISPs like Finexer, is transforming the accounting industry.
• By leveraging automated data collection, real-time financial insights, and enhanced data accuracy, accounting firms can deliver more efficient and valuable services to their clients.
• Finexer’s secure and scalable open banking data aggregation solution enables accounting professionals to focus on strategic tasks, provide proactive advice, and drive business growth.
• As the adoption of open banking continues to grow, accounting firms that embrace open banking data aggregation will be well-positioned to thrive in the digital era.

If you’re an accounting firm looking to harness the power of open banking data aggregation, Finexer is here to help. Schedule a demo today and discover how Finexer can revolutionise your accounting processes and elevate your client services.