Essential Tech Stack for High-Growth Businesses: 6 Tools Your Finance Function Needs

In today's rapidly evolving business landscape, having the right technology to support your finance function is no longer optional—it's essential. At Profit Cash Growth, we've identified the six key pieces of technology that can transform how seven-figure businesses manage their finances, streamline their operations, and drive profit.

As proactive accountants, we recommend these tools to our clients because they create efficiency, reduce manual work, and provide the insights needed for business growth. While we're not affiliated with any of these software providers, we believe they represent the best-in-class solutions for businesses approaching or in the seven-figure range.

The Foundation: Xero Accounting Software

The cornerstone of any effective finance stack is robust accounting software. We recommend Xero because it offers:

• The largest app marketplace, allowing seamless integration with other business tools

• Significant development resources ensuring continuous improvement

• Cloud-based architecture enabling anywhere, anytime access

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Unlike legacy systems such as Sage (which dates back to the 1980s), Xero was built for the cloud era. This means your management accounts are always up-to-date and accessible from anywhere, and your financial data flows seamlessly between systems.

For larger companies approaching eight figures in revenue, an Enterprise Resource Planning (ERP) system might be appropriate. These all-encompassing systems handle everything from purchasing to human resources. However, for seven-figure businesses, a well-integrated suite of specialized tools often provides more value at a fraction of the cost.

Five Essential Add-ons for Your Finance Function

Once you have Xero as your foundation, here are the five tools we recommend integrating:

1. CRM System

Customer Relationship Management systems do more than just track customer interactions. The right CRM will:

• Generate quotes that convert directly to sales invoices in Xero

• Track your sales pipeline

• Automate marketing activities

Popular options like Pipedrive, Salesforce, and HubSpot all integrate seamlessly with Xero. For specialised industries like logistics, systems such as Mandata or Truckcom might be more appropriate.

2. Dext for Document Processing

Dext transforms how you handle invoices and receipts. For approximately £30 per month, this system:

• Uses optical character recognition to extract data from documents

• Automatically posts transactions to Xero (with an approval option)

• Reconciles supplier statements, flagging any missing invoices

• Connects to popular services like Amazon and utility providers to automatically fetch invoices

  
  

While Xero does offer a free alternative called Hugo, our experience shows that Dext delivers superior accuracy and functionality, especially for businesses processing significant volumes of transactions. This efficiency improvement is crucial for bookkeeping processes and can save countless hours of manual data entry.

3. Apron for Payment Management

Apron streamlines the payment process by:

• Creating organized payment runs based on your Xero data

• Flagging potential fraud by detecting bank detail changes

• Enabling approval workflows where different team members can prepare, approve, and process payments

• Supporting payroll files and VAT payments in the same system

• Offering favorable rates for foreign payments

• Allowing credit card payments to suppliers (great for accumulating rewards points)

• Identifying direct debit suppliers so they don't appear on payment runs

At £25-30 monthly, Apron delivers exceptional value by streamlining one of the most time-consuming aspects of financial management.

4. Mayday for Multi-Entity Businesses

If you operate multiple limited companies, Mayday is essential. This tool:

• Automates inter-company transactions

• Handles situations where payments from one entity are for expenses belonging to another

• Manages inter-company loans and recharges

• Simplifies consolidated reporting

For businesses with shared resources across multiple entities, Mayday eliminates the need for manual reconciliation and tracking of inter-company activities.

5. Advanced Reporting Package

While Xero excels at organising financial data, its native reporting capabilities are limited. We recommend adding a dedicated reporting tool like Fathom (our preferred solution), Data Rails, or Sift. These systems:

• Provide enhanced Profit & Loss reporting, including percentage calculations not available in Xero

• Offer sophisticated cash flow forecasting tools

• Enable scenario planning for potential business changes or major projects

• Support better decision-making through visualized financial data

  
  

For businesses using cost centres or tracking categories in Xero, Join (JOIIN) offers particularly strong reporting functionality.

Why Technology Matters for Your Finance Function

Investing in the right finance technology delivers multiple benefits:

1. Increased efficiency: Your finance manager or finance director can focus on analysis and strategy rather than data processing.

2. Improved accuracy: Automated systems reduce human error in transaction processing.

3. Better cash flow management: Real-time visibility into your financial position helps prevent shortfalls.

4. Strategic insights: Enhanced reporting tools illuminate opportunities for business growth and profit improvement.

5. Scalability: The right tech stack grows with your business, delaying the need for costly ERP implementations.

Most importantly, these systems free up your finance team from routine tasks, allowing them to become true business partners focused on driving profit rather than processing transactions.

Is Your Accountant Tech-Savvy?

A key takeaway is that technology should eliminate mundane tasks, not just for your internal team but also for your accountant. If your accountant regularly asks you to manually retrieve documents or perform repetitive tasks that could be automated, it may be time to consider a change.

Modern proactive accountants leverage technology to shift their focus from data processing to providing insights and strategic guidance. This means you get more value from your accounting spend—focusing on business improvement rather than transaction processing.

Conclusion: A Bespoke Approach

Not every business needs all six components we've discussed. Your technology needs depend on your business size, structure, and specific challenges. The key is to build a tech stack that addresses your unique requirements.

At Profit Cash Growth, we help seven-figure businesses implement the right technology solutions to streamline their finance function and drive business growth. Our approach focuses on making your financial processes more efficient so you can concentrate on what really matters—growing your business and increasing profitability.

Ready to transform your finance function with the right technology? Contact us today for a personalised assessment of your business needs.