The importance of correct CRM and Bookkeeping Integration

What is the technical term for a pile of data that is meaningless or incorrect? I’ve been referring to it as a little pile of brown stuff, but I’m sure there is a better term. This is what your CRM and bookkeeping integration data can end up like if you are not careful.

The importance of choosing the right CRM cannot be understated. Not only does it need to have all the functionality you desire and be future-proofed for your growth, but it also needs to work with your equally suitable accounting system.

I have been working with several companies recently where the initial integration with the CRM system and accounting software was not managed properly. Most have had financial implications that have cost the business money that could have been avoided.

The basic reconciliations that would be expected to see had not happened and by the time I was brought in to help get some clarity around finances, things were in a bit of a mess. Here’s a couple of examples:

In one case we had to review the entire client receipts from when the company started to match them to those in the CRM system to find where the difference occurred. A massive undertaking that was complicated by how the information was exported into Xero. If the reconciliations had been done from Day 1 life would have been simple, or at least the bookkeeping would have!

In another example (a retail client), the integration automatically worked some of the time and failed randomly at others. Unfortunately, this meant that we needed to check every single end-of-day transfer from the till system into Xero.

We also had to tackle duplicate entries when the CRM pushed through end-of-day journals that had failed on previous occasions, and which we had had to manually enter. At one point the client was looking at a VAT bill double his usual payment until I found out what had happened.

It was only when doing the reconciliations required between the bookkeeping software and the CRM and the banks that it was realised that the integration was failing. An inability to understand how the CRM was interacting with the bookkeeping system in both cases led to inaccuracies in the reporting and understanding of the financial position and an overpayment of VAT.

If you have ever tried to find a needle in a haystack, had a dropped stitch in a knitted blanket, or untangle a knotted pile of string, you will know what it is like to have to unpick an integration that has gone wrong but with a CRM/Accounts integration you have the added aggravation of staring at a screen for days on end!

Maybe there is an AI tool out there that can do this. If there is one, please let me know!

If you are contemplating linking your CRM system to your bookkeeping system (there are lots of positive reasons why you should or would want to) please make sure that you plan to review the accuracy of the postings and understand how the systems talk to each other.

Or, save yourself the stress and aggravation and ask me to help you set it up correctly so it doesn’t cost you time or money mistakes.

It all starts with a free CRM/Accounting Integration review

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