What is a financial stack?

According to Wikipedia, in the software development world the term “software stack” or “solution stack” means the:

“…set of software subsystems or components needed to create a complete platform such that no additional software is needed to support applications.” 

Others have borrowed this concept in other arenas. For example, Optimizely explains the term Marketing Technology Stack as:

“…a grouping of technologies that marketers leverage to conduct and improve their marketing activities.”

These concepts inspired us to start Finstacker to help startups and small businesses determine their optimal “financial stack” for their unique business situation.

Financial Stack - Defined

We define financial stack as the software, services and people that allow a business to complete their bookkeeping, tax, and other financial management tasks.

Depending on your specific business situation, your financial stack could include solutions for any of the following tasks:

  • Bookkeeping

  • Filing taxes

  • Payroll

  • Payment processing

  • Invoicing

  • Accounts receivable

  • Accounts payable

  • Expense reports

  • Employee benefits

  • Employee time tracking

Then each one of these tasks could be completed by various software tools, a 3rd party service, or an employee or contractor. There are literally millions of combinations that a business could end up with to complete all of these tasks.

Finstacker’s goal is to reduce all of this complexity for small business owners by recommending the perfect mix of software, services and people to build their financial stack.

Example of a Financial Stack

As an example of a financial stack I will share our relatively simple stack for Finstacker’s sister company ProjectionHub which is a SaaS web app that helps entrepreneurs create financial projections. We use the following:

Example Financial Stack.png

  • Payments - Stripe

  • Bookkeeping - Quickbooks

  • Taxes - Katz Sapper & Miller

  • Payroll - Gusto

  • Financial Analysis - Excel

  • Banking - Chase

  • Invoicing - PayPal

So even for our very simple SaaS business model we have to utilize 7 different software tools or services to complete our financial management tasks.

To determine the perfect financial stack for your business take our short quiz to receive free recommendations.