In the last decade, the financial technology sector has seen a dramatic rise in business banking startups across the globe, with a particularly significant boom in the United States.
These startups have emerged with a mission to revolutionize business banking, a domain that has long been plagued with inefficiencies, outdated systems, and cumbersome processes. By focusing on creating user-friendly platforms and innovative products, they aim to simplify the complexities of managing business finances.
However, in their quest to "fix" business banking, some of these startups have overlooked a critical group of users: accountants.
When business banking startups develop new features — whether it's an accounts payable product or a mobile check deposit function — they typically prioritize the user experience for business owners and managers. This approach is logical; after all, these are the people who directly interact with the platform daily. However, this often overlooks the professionals working behind the scenes to ensure the accuracy and efficiency of business finances: accountants.
At this point, some in the fintech industry might express confusion. Many fintech companies claim to focus extensively on accountants, particularly when developing referral or customer acquisition strategies. However, this attention rarely extends beyond surface-level engagement. The deep, process-oriented needs of accountants are often neglected, leaving them with tools that may attract new clients but complicate their work. The focus remains on the immediate user — the business owner — rather than considering the broader implications for those responsible for reconciling and recording these transactions.
Why business banking startups overlook accountants
One of the primary reasons accountants are often overlooked is the narrow definition of the "user" within the product development lifecycle. Business banking platforms tend to define their target users as those who directly interact with the app to make payments, deposit checks, or manage invoices. They see the process as complete once the payment is made. However, this perspective fails to account for the critical post-transaction processes that accountants must manage, such as reconciliation, financial reporting, and tax preparation.
For instance, a startup might develop a seamless, one-click payment solution that appears to save time and reduce complexity. However, if this transaction isn't automatically and accurately synced with the business's accounting software, the supposed efficiency quickly dissolves. What initially seemed like a streamlined process for the business owner now creates a new set of challenges for the accountant, who must manually enter or adjust records, potentially dealing with discrepancies and errors along the way.
Moreover, many fintech companies fail to recognize the complexity of the accounting process. Business owners might only see the front-end interaction, while accountants are tasked with managing the entire financial life cycle, from data entry to reconciliation, reporting, and beyond. Without a deep understanding of these processes, startups inadvertently create tools that add layers of manual work, undermining the very efficiencies they aimed to introduce. Ask any accountant about an integration that promised to change their work drastically. They will tell you how it was nicely marketed but didn't deliver on what was promised.
The critical role of accountants in business banking
Accountants bring a wealth of knowledge and expertise that is often underutilized by FinTech startups. These professionals understand the nuances of financial management that business owners might overlook. They see the entire financial picture, not just individual transactions, and are intimately familiar with the challenges of keeping records accurate, compliant, and up-to-date.
By ignoring accountants during the product development process, startups miss out on the opportunity to create truly effective financial tools. Accountants can offer valuable insights into the full lifecycle of a financial transaction, highlighting potential pain points and suggesting ways to streamline the integration with existing accounting systems. Their involvement could help startups avoid creating products that are superficially appealing but ultimately add complexity to the accounting process.
Moving forward: integrating accountants into the development process
To address these issues and create more comprehensive financial tools, business banking startups must begin to view accountants as key users, not just ancillary stakeholders. Here are several steps that FinTech companies can take to better integrate accountants into their product development process:
- Involve accountants early in the development cycle: Startups should engage accountants from the outset, involving them in the brainstorming and design phases. By understanding their workflows, startups can identify potential friction points and design products that truly simplify financial management.
- User testing with accountants: Just as products are user-tested with business owners and managers, they should also be tested with accountants. This will help ensure that the tools function well not just in making payments or deposits, but in integrating seamlessly with accounting software and reducing the manual work required to maintain accurate records.
- Focus on end-to-end solutions: Startups should aim to develop solutions that consider the entire financial transaction lifecycle, from initiation to reconciliation and reporting. This might involve deeper integrations with popular accounting platforms, automated data syncing, and features that help reduce the manual workload for accountants.
- Continuous feedback and iteration: After a product is launched, the feedback loop should include accountants as well. Continuous engagement with accounting professionals can help startups identify areas for improvement and iterate on their products to better meet the needs of all users.
In their mission to disrupt and innovate within the business banking sector, FinTech startups must broaden their perspective on who their users truly are. Accountants play a vital role in the financial health of businesses, and their needs should be prioritized in the development of new banking tools. By involving accountants in the development process, testing products with them, and focusing on end-to-end solutions, startups can create products that are not only innovative but also truly effective. Ignoring this critical user group not only limits the success of new products but also risks alienating a key segment of the market. In the competitive landscape of business banking, the startups that recognize and address the needs of accountants will be the ones that ultimately stand out and succeed.
