Bookkeeping Systems Clash in Ecommerce Showdown
Finaloop and ConnectBooks represent two distinct philosophies in ecommerce bookkeeping, each with its own approach to managing financial data. The primary difference between the two lies in their integration with existing accounting software, with Finaloop replacing it and ConnectBooks writing into it.
Understanding the Approaches
Finaloop combines real-time financial software with expert accounting services, essentially taking full responsibility for financial accuracy. This approach is reflected in its pricing page, which lists three plans: Starter, Platform, and Full-Service. The Starter plan, priced at $245 a month, includes a dedicated accounting and finance team, monthly finance review, and unlimited bank, app, 3PL, and WMS integrations.
The Platform tier adds integrated inventory management and COGS workflows.
The Full-Service tier’s details are not publicly disclosed.
Notably, Finaloop’s pricing page does not list QuickBooks or Xero as integrations, consistent with its positioning as a replacement for existing accounting software.
ConnectBooks’ Integration Approach
ConnectBooks, on the other hand, is an accounting integration that reads marketplace activity from various platforms and posts it into QuickBooks Online, QuickBooks Desktop Enterprise, or Xero. It handles automated COGS, real-time inventory tracking, and marketplace settlement reconciliation.
ConnectBooks’ pricing is published, with plans starting at $149 a month, and it offers a 30-day free trial.
The software produces entries, but a human is still required to close the books.
They offer a range of integrations, including SellerCloud, Goflow, Finale Inventory, ShipStation, Veeqo, and Ordoro.
When deciding between Finaloop and ConnectBooks, sellers should consider their specific needs and existing accounting setup.
If they want a dedicated team to handle their bookkeeping, Finaloop might be the better choice.
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However, if they prefer to keep their existing accounting software, ConnectBooks is likely a more suitable option.
Key Considerations
One key consideration is the breadth of reconciliation.
Finaloop lists unlimited bank, app, 3PL, and WMS integrations, plus reconciliation across payment processors and ad platforms.
ConnectBooks, while offering a wide range of integrations, may not cover as many channels.
Another important factor is accountability.
With Finaloop, there is one contract and one party responsible for financial accuracy.
In contrast, ConnectBooks splits responsibility between the software, the bookkeeper, and the seller, which can lead to gaps in reconciliation.
Ultimately, the choice between Finaloop and ConnectBooks depends on the seller’s specific needs and preferences.
By carefully evaluating their options and considering factors such as pricing, integration, and accountability, sellers can make an informed decision that best suits their ecommerce business.
Managing business finances effectively is critical for success.
By choosing the right bookkeeping approach, sellers can ensure they are well-equipped to handle the financial aspects of their business and focus on growth and development.
