Popular accounting packages (like Xero and QuickBooks) do a very good job of generation financial statements covering activities like payroll, expenses, travel claims, invoicing, rent, direct investment in real estate businesses etc. Most statutory audit firms tend to be very familiar with Xero/Quickbooks which makes the creation of audited financial statements a very straightforward task.
However these packages were designed for a typical SME and their reporting on financial investments is not particularly well developed. For example, these packages find it hard to calculate realized and unrealized gains on financial investments (which is a key part of any investment activity).
Canopy's solution involves the following steps
- Let Xero do what Xero does best (i.e. report on everything except financial investments)
- Let Canopy do what Canopy does best (i.e. become the source of truth and all analytics on financial investments)
- Canopy then generates General Ledger (GL) entries on all the financial investments
- These GL entries can then be uploaded into Xero (via their API or as a CSV upload)
This way the user gets the most optimal solution.
Updated 5 months ago