Tl;dr

ConnectCPA stitched together multiple cloud accounting apps to streamline VidDay’s finance function. The new integrated apps plus the special sauce of ConnectCPA’s team facilitates on-time monthly deliverables and reporting.

Big thanks to the ConnectCPA team involved in the implementation and a shout-out to the VidDay team for embracing change.

BACKGROUND

VidDay allows users to create videos for special occasions in a streamlined fashion, centred on user experience.

When the pandemic hit, celebrations like birthdays, weddings and anniversaries were cancelled - but that didn’t stop friends, family and loved ones from wanting to reach out to celebrate - virtually. And so the business took off.

The VidDay team reached out to us in June of 2020 - a few months after COVID-19 was in full- swing in North America - and they were growing fast.

When companies experience high growth early on, they’re usually preoccupied with running their business and ensuring that customers are happy. In many cases, the accounting, bookkeeping, payroll and back-office takes a back seat until there’s a reason to worry (investors want to participate, cash-flow issues, etc.). This can result in a lot of catch-up work and delays.

VidDay contacted us at the perfect time - just as they started gaining traction - and they had the foresight to understand how important the finance component of their company would be.

Through multiple deep-dive meetings and discussions, we were able to build a scalable solution by stitching best of breed cloud accounting apps together. The result is a more digital and automated framework for VidDay’s finance function.

WHAT DID WE DO?

As a start, we migrated VidDay’s data from their accounting system to Xero. We then focused on the following components:

Vendor Payments

Paying vendors on time is critical to keep operations running smoothly. Prior to working with ConnectCPA, VidDay was using a manual approach to vendor payments. By leveraging Xero’s API, we were able to integrate multiple apps to automate the process.

Before

Vendor invoices were stored in multiple inboxes and systems and these invoices were entered manually into VidDay’s previous accounting system
Payments were done intermittently and through various sources (e-transfers, PayPal payments, etc).

After

A centralized spot, using Dext, for all invoices/receipts was set up so that our bookkeeping team could access vendor invoices quickly and easily for reconciliation purposes
Automation was set up between Dext and Xero to ensure all vendor invoices were automatically created as accounts payable in a timely manner - coded to the correct accounts with the appropriate sales tax rates.

A vendor payment app, Plooto, was implemented and integrated with Xero to sync all outstanding vendor invoices. A payable process and schedule was set up to ensure vendor payments were made on time meanwhile all invoices auto-synced to the accounting system when paid, making bookkeeping and reconciliation streamlined.

Software as a service (SaaS) Revenue

Although Xero has a deep integration to Stripe we don’t always choose to integrate the two apps. In cases mostly related to high-volume SaaS businesses, we’ll opt to get the info we need directly from Stripe through our own method.

Before

Manual entering of data into an accounting system, including date, reference information, dollar amounts, etc. And separate inputs of Stripe fees and payouts.

After

Consolidated daily CSV imports into Xero with Stripe revenue, Stripe fees and payouts - that reconcile to Stripe deposits in operating accounts
Daily imports allow us to report foreign currency transactions in a more accurate way as they tie to the daily exchange rate

Payroll

Before

Online payroll through an accounting system with partial direct deposit functionality. Manual source deductions to the tax authorities were still being made and employees didn’t have a one-stop-shop to access pay-stubs and other employee information.
Time tracking was done in spreadsheets

After

Online payroll through a dedicated payroll system, Wagepoint, with direct deposit to employees and tax authorities, including individual employee portals.
Time tracking system through an app that integrates with payroll, reducing data entry
Payroll data is integrated to Xero via the API for quick and accurate reconciliation

THE RESULT

Reporting

After implementing and connecting various cloud accounting apps together, the ConnectCPA team works in unison to ensure monthly financial statement reports are delivered electronically through an automatic notification every month.

By having this data at our fingertips, we ensure that the year-end tax filings are a breeze. We’re also able to tax-plan on a frequent basis since the reporting is timely and accurate.

Time Savings

We estimate that VidDay saves one day per week with this new financial architecture that has been set up. That’s priceless.

Going Digital

All data, information and source documents are now fully accessible from anywhere with an internet connection. This is convenient because information is now at VidDay’s fingertips - whether present or future stakeholders require information or whether reports and/or source documents are required for financial statement audits - everything is accessible without any hassles.

FINAL THOUGHTS

Understanding key areas for improvement and implementing apps to sync with each other is important. But the execution, ongoing maintenance and support is what makes the magic happen. Big thanks to the ConnectCPA team involved in the implementation and a shout-out to the VidDay team for embracing change.

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