Confronted with elevated shopper expectations and strained bandwidth, at present’s accounting corporations are in essential want of better automation and streamlined workflows. Thankfully, with the precise applied sciences in place, equivalent to API third-party integrations, corporations can obtain the efficiencies they should stay aggressive.  

It’s seemingly that you just’ve heard of API (Software Programming Interface). An API is a connector that permits two in any other case disconnected and unrelated techniques to speak with one another and break down information silos. In different phrases, an API is sort of a handshake between two totally different and separate functions. 

So, what precisely is a third-party API integration and why is it vital? Let’s take a better look to reply these questions, and extra. 

What’s a third-party API integration?

API third-party integration is when two disparate techniques join their APIs, or shake arms, to permit them to entry information from the opposite. 

For instance, Thomson Reuters GoFileRoom has partnered with Microsoft to launch a GoFileRoom connector. This allows GoFileRoom to speak to Microsoft Energy Automate, PowerApps, and Logic Apps inside Microsoft’s ecosystem. 

There’s additionally Zapier Apps, which lets customers join GoFileRoom to greater than 2,000 different net companies. 

One other instance is the partnership between Thomson Reuters ONESOURCE and Alteryx. This partnership is designed to assist resolve the problem of knowledge assortment, transformation, and cargo for ONESOURCE customers and put together information for enhanced reporting and evaluation. 

How do third-party integrations work?

Third-party integrations work by way of connectors that bridge the hole between third-party functions. These connectors allow corporations to develop integration with out the necessity to know the inside workings of the API or to rent builders. 

To additional clarify, a connector is a user-friendly wrapper round an API, permitting its customers to shortly wire a number of apps collectively — all with out having to know the inside workings of the APIs. A connector makes it simple for corporations to leverage APIs with visible options like drag and drop. 

“It truly is simply permitting them a simple technique to combine with our software program. For instance, with the Microsoft [API integration], they will actually simply drag and drop this connector in, and it offers them the code they want. Then, they only want to offer their username and password and so they can begin authenticating into our system,” stated Dustin Teribery, API Specialist at Thomson Reuters. 

Teribery added, “It’s pre-built so [firms] don’t want the IT assets. [Thomson Reuters] and the third-party have already put within the time, so they only profit from it.” 

What are the dangers of third-party APIs?

Accounting corporations are the gatekeepers to a treasure trove of delicate shopper information and a breach of that information can little doubt be detrimental. Subsequently, it’s comprehensible to be involved about what dangers could also be related to third-party APIs. 

Some generally cited dangers of third-party APIs embrace: 

• The unencrypted transport of knowledge  
• Cross-site scripts  
• Cross-site request forgery 
• Injection of malware code 
• Spoofing, which is when a cybercriminal masquerades as somebody they aren’t to achieve entry to information 

Subsequently, it is very important make sure that third events are trusted sources. It’s essential that answer suppliers shield your agency’s information with a number of layers of safety, together with community safety, virus safety, and encryption schemes. 

“If [firms] ever do have any questions I might go proper to the supply and ask them some questions in regards to the connectors,” Teribery stated. 

Thomson Reuters, for instance, provides safe Net APIs as an add-on choice to ONESOURCE Tax Info Reporting. The agency’s system immediately integrates with the ONESOURCE Tax Info Reporting system utilizing state-of-the-art safety (SHA-2, X.509 and so forth.) with RESTful Net APIs to retrieve and replace tax info. 

That is, after all, only one instance of the multi-pronged safety measures that options suppliers could have in place. 

What are the advantages to API third-party integrations?

API third-party integration may be very useful because it allows corporations to attach siloed techniques and drive automation. When information is remoted in disconnected, unrelated functions and have to be entered manually, it proves to be extremely inefficient and will increase the danger of human error. 

How a agency makes use of APIs is dependent upon its workflow and the opposite companies it leverages however, usually, APIs allow corporations to:  

• Automate key processes and cut back hours spent on non-billable work; 
• Keep away from getting into information manually to scale back the danger of errors; 
• Improve visibility of shopper wants with linked options; 
• Join in any other case disconnected third-party techniques; and 
• Achieve insights for evaluation and determination help. 

Some pattern use circumstances for APIs embrace: 

• Arrange doc safety permissions for shoppers which have been outsourced; 
• Robotically file totally different e-Signature functions into GoFileRoom as paperwork; 
• Create and deactivate GoFileRoom customers by way of an Excel spreadsheet import; 
• View FirmFlow information in Enterprise Intelligence functions equivalent to Energy BI or on cell gadgets; and 
• Retrieve a shopper record, submit an e-File, retrieve an e-File acknowledgement, and so forth. 

It also needs to be famous that as a result of the ensuing automation is just not reliant on the information of a single individual, APIs may also help succession planning and enterprise continuity. 

Chatting with the advantages of API third-party integration, Teribery added that it’s “a simple technique to get began and begin utilizing it to see, ‘Is that this the way in which you need to go? Is it reaching what you need?’ Then at that time you would possibly begin growing your personal apps or maintain utilizing the connectors. It actually is dependent upon what your finish recreation is, however I believe it’s a good technique to get began and to get comfy and see what is accessible and shortly get began.” 

Why is API integration vital?

As outlined above, there are clearly a lot of notable advantages to be gained by leveraging APIs, equivalent to better efficiencies, enhanced automation, and a diminished danger of errors. Except for these advantages, it is very important take into account that not each agency has the IT experience on employees to develop APIs from scratch. 

API integration will help degree the taking part in area for corporations that need to reap the advantages however have restricted assets. 

“I believe it actually helps the corporations with no IT or restricted IT employees availability. It offers them the power to begin APIs, or an finish consumer who desires to strive one thing — it actually makes it simpler for them and also you don’t essentially should be a developer to begin linking a few of the info collectively to get some primary info. It’s actually about giving folks selections and corporations selections about how they need to use our software program and join with it,” Teribery stated. 

Another excuse why API integration is important is to modernize legacy techniques. When investing in new know-how, corporations could run into conditions the place sure one-off techniques are unable to attach with the brand new know-how.  

When this occurs, connecting legacy software program by way of an API allows corporations to make sure that the outputs are primarily based on probably the most present and correct information obtainable. 

Tips on how to get began with APIs 

One of many first steps in getting began with APIs is to mirror on the inefficiencies that hinder your agency’s productiveness. What are the ache factors you need to tackle? 

From there, you possibly can flip to a options supplier who will help guarantee seamless API integrations on your agency’s success. Learn our white paper “How APIs will help remodel your observe” to study extra in regards to the capabilities and advantages of APIs.