What You Should Know About Integrating with Accounting and Invoicing Systems

We know it sounds like we're telling you what you already know, but if you aren't streamlining and improving your internal processes, you're going to find yourself in a pickle. So many companies - who are rightly considering automation for lots of manual tasks - seem to hit a roadblock when it comes to moving away from manually handling accounting and invoicing to a more efficient approach.

So whether you've been offered an integration solution or you're simply tired of spending countless hours on manual data entry, it's important to understand the options for integrating the CRM you're using (such as HubSpot) with your current accounting systems before making a decision.

In this article, we want to offer you a comprehensive overview of what integration really involves, to help you figure out what's best for your business, and make informed choices. We'll cover the prerequisites for successful integration, the different types of solutions available, and some of the potential challenges you may encounter. We'll also examine two popular accounting software integrations in more detail: Xero and QuickBooks Online.

Let's get started.

1. Managing Expectations From the Get-Go

2. Warning Signs to Watch For

3. Mitigating Risks: Key Questions to Ask

4. Requirements for Successful Integration

5. Popular Integrations in Detail

6. A Word of Encouragement!

Managing Expectations From the Get-Go

First things first. There's a common misconception that HubSpot (or any CRM) will magically integrate seamlessly with everything right out of the box. While HubSpot offers powerful capabilities and many integration options, it's not a magic solution that instantly solves all your data synchronisation challenges. This is particularly true of integrations with complex systems like accounting and invoicing, where manual syncing and set up can be common.

So many businesses invest heavily in CRM licences, sometimes spending over £10,000 per licence, and they understandably expect features like invoicing integration to work perfectly from day one. The reality is usually more complex (and expensive). And, it’s extremely likely that no matter which solution or implementation you choose, there will still be some manual work to be done, so make sure you take this into account. 

Depending on your specific requirements and process complexity, you may also need to invest additional resources – potentially £5,000 or more – for custom integrations to make sure everything is tailored to you and works as it should. Yes, that might feel daunting! But this doesn't mean you should avoid integrations. 

When implemented correctly, integrations can significantly improve efficiency and data accuracy, saving huge time, effort, and potentially saving you money in the long run. We love integrations, and we love HubSpot, but we love our customers more - and that's why we want you to be sure that you're approaching this process with realistic expectations and a clear understanding of what's involved.

Warning Signs to Watch For

When considering integration, be aware of these red flags before you do anything. The things below can make it very difficult to make integration work smoothly. Integrations work best when there are set patterns and processes that it can follow automatically. That means if you have…

• Highly customised quotes for every client
• Lack of standardised products or services
• Inconsistent pricing structures
• Poor data quality in your CRM or accounting system…

You might find your integrations are more limited than you would like. 

"When implemented correctly, integrations can significantly improve efficiency and data accuracy, saving huge time, effort, and potentially saving you money in the long run"

Mitigating Risks: Key Questions to Ask

To avoid the above, and before starting an integration project, ask yourself and your team these important questions:

1. Can we define a standard structure for our products/services?
2. How consistent are our quoting and invoicing processes?
3. What is the quality of our current CRM and accounting data?
4. Do we have the resources to maintain integrated systems?
5. What specific problems are we trying to solve with this integration?
   
   

Requirements for Successful Integration

Before considering integration options, you have to make sure your business processes are ready for automation. This preparatory work is often overlooked, but is essential for any successful integration project.

Standardising and Defining Processes

Successful integration requires well-structured, standardised processes, including things like:

1. Structured Products and Services: Clearly define and consistently structure your product catalogue or service offerings.
2. Standardised Quotes and Invoices: While some customisation is often necessary, having a standard template for quotes and invoices will really simplify integration.
3. Clear, Well-Understood Business Roles: Who does what in your business? Who is in charge of sending and receiving invoices? When the time comes for a member of staff to step in during an automated process, who is that person in your company? Make sure you (and they!) know what their roles and responsibilities are. 
   
   

Integration Options

Now we come to the integration considerations themselves. There are several approaches to integrating your CRM with accounting systems, each with advantages and disadvantages. 

Let's explore the four main types of integration options:

1. HubSpot Marketplace Built-in Integrations

These are quick and easy to set up, often free or low-cost, but may have limited customisation options. They're great for businesses with straightforward needs and standard processes, but for those who need something more custom or complex, these won't quite make the cut.

These offer more flexibility and can handle complex workflows, but may require some technical knowledge to set up and maintain. Having someone in-house with this technical expertise or know-how could really help here. 

3   Custom Server-based Solutions (e.g., Heroku)

This approach offers more flexibility and power than off-the-shelf solutions, but requires significant technical expertise and ongoing maintenance. You might need to consider bringing in a partner or a part-time member of staff to oversee this.

4   Fully Custom Integrations with Operations Hub

For businesses with complex needs and the budget to match, this option offers the most flexibility and power, but it's also the most resource-intensive (aka ££££!).

Popular Integrations in Detail

Let's take a closer look at two popular accounting software integrations, Xero and QuickBooks Online.

Example 1: Xero Integration Overview

Xero is world-leading online accounting software built for small businesses. The Xero to HubSpot integration ensures your Xero contacts are available in HubSpot CRM for all your inbound sales processes and keeps them up-to-date if anything changes in Xero.

What does a Xero integration offer you?

Key Features:

• Real-time view of cash flow
• Mobile app for on-the-go business management
• Create invoices inside HubSpot CRM (for Australia, New Zealand, and the UK)
• Quick reconciliation of bank transactions

Integration Features:

• Send contacts from Xero to HubSpot
• Keep contacts in sync automatically
• Default mappings ensure information is set correctly in HubSpot

Shared Data:

• Contacts are synced between Xero and HubSpot
• Email address is used as an identifier for contact syncing
  
  

Example 2: QuickBooks Online Integration Overview

HubSpot's QuickBooks Online (QBO) integration enables you to sync data between HubSpot and QBO, providing a complete view of the customer, streamlining your billing and  payments process, and keeping accurate financial records.

Key Features:

• Bi-directional sync of Invoices, Contacts/Customers, and Products
• Streamlined billing process with Commerce Hub features
• Two-way invoice sync and automatic payment syncing

Integration Features:

• Flexible data sync options with sync filters
• Convert Quotes and Deals into invoices and subscriptions
• In-depth sync health reporting and error resolution
• Customisable field mappings (with Operations Hub Starter or above)

Shared Data:

• Customers/Contacts
• Invoices
• Products & Services

Key Considerations for Each Integration Type

When deciding which integration approach to take, consider the following factors:

• Budget constraints
• Desired level of automation
• Data matching requirements
• Technical expertise needed
• Scalability and future-proofing

Being super clear on these factors will make sure that you're finding the right solution for your business, and not just the shiniest or best-marketed solution. You'll also be able to discern whether the most expensive option is worth it, and if cheap will be costly in the long run.

Common Integration Challenges

We do hate to say it, but even with careful planning, you're likely to encounter some challenges when integrating your CRM with accounting systems. Here are some common issues to be aware of:

• Mapping contacts and companies - making sure your data is clean, up-to-date, and easily migrated will be crucial for integration success.
• Handling custom pricing and non-standard deals - will your integration systems handle unusual projects or opportunities?
• Syncing limitations with accounting software - not all software is made equal, so how can you factor in these limitations and plan for the event that something might go wrong, fail to sync, or become outdated?
• Dealing with missing or inconsistent data - duplicates, errors, and other factors can all create what's known as “dirty data”, but data that's non-existent can be a nightmare! Which processes do you have for factoring missing data that could be essential for smooth integration?

A Word of Encouragement!

Integrating your CRM with accounting and invoicing systems can significantly streamline your business processes, but it's challenging to get it set up for success. Time, money, energy and expertise will all be required for successful integrations, so the key points to remember are:

1. Manage Your Expectations: Understand that even with substantial investment in CRM licenses, additional resources may be needed for effective integration.
2. Prepare Before You Integrate: Standardise your processes, clean your data, and clearly define your integration goals before starting.
3. Choose the Right Solution: Consider your budget, technical capabilities, and specific needs when selecting an integration approach. Popular options like Xero and QuickBooks Online offer robust features but may still require customisation for complex needs.
4. Be Prepared for Challenges: Expect to encounter issues, particularly around data mapping and synchronisation. Plan for how you'll address these.
5. Maintain and Evolve: Regular audits and updates are key for long-term success.

If you're able to approach integration with these points in mind, you'll be well-positioned to achieve a solution that truly enhances your business operations. 

"Integrating your CRM with accounting and invoicing systems can significantly streamline your business processes, but it's challenging to get it set up for success"

The goal is not just automation for its own sake, but creating a system that provides real value and efficiency for your business - and that's something you definitely deserve.

Looking to save time and money through effective automation? Book a call with our team below to find out more.