Frequently Asked Questions

  • Is FinHub a replacement for my accounting system?

    Finance Hub is designed to complement, rather than replace, your existing accounting system.

  • Does FinHub integrate with my accounting system?

    Finance Hub integrates with Quickbooks, Xero, and Oracle Netsuite (COMING SOON), and a host of other accounting systems.

  • Does FinHub account for my working capital loans?

    Working capital loans will be supported very soon - possibly as early as next week.

  • Do you support my bank/credit card?

    Finance Hub currently integrates with most financial institutions in the United States and Canada, and other markets are coming soon!

  • Does FinHub integrate with my 3PL?

    Finance Hub currently relies on Shopify for access to inventory information.

  • Can I limit which users of my Triple Whale account have access to financial information?

    Yes! By default, the only user of your Triple Whale account who will have access to financial information is the store owner, and you can selectively grant access to other users at your discretion.

  • Is there a Glossary of FinHub terms I can read somewhere?
    Yes! Read it here.

  • Will my financial data be secure?

    As the saying goes, the only things in life that are 100% certain are death and taxes. Having said that, we use industry-leading best practices to secure financial data.

    • We use Plaid to connect to financial institutions, which means that any credentials you provide will not even be stored at Triple Whale

    • All data is secured in transit and at rest

    • Only you and the people you designate will have access to your financial content

  • Can I purchase FinHub without purchasing any other modules?

    Currently, people must have the TW OS (e.g., summary page) in order to purchase FinHub, but eventually, we will make FinHub available as a completely independent product

  • What is the hierarchy of categorization rules?

    There are 4 approaches to categorization available in FinHub:

    (a) if you connect an accounting system and you categorize transactions in that system, that categorization will flow into FinHub automatically,

    (b) you can set a rule in FinHub to categorize transactions based on the name of the merchant,

    (c) you can set a rule in FinHub to map Plaid’s categorization onto P&L lines, and

    (d) you can categorize individual transactions notwithstanding other rules.

    In cases of dispute, the hierarchy is: A, D, B, C

  • How can I customize the inventory aspect of my balance sheet?
    Check out this video to learn how!

Glossary

What’s the difference between “cash accounting” and “accrual accounting”?

Overview

Cash accounting means that revenue and expenses are “recognized” on the books at the time when money changes hands. By contrast, accrual accounting means that revenue is recognized when it is earned and expenses are recognized when they are incurred, regardless of when money changes hands

Example

Expense: Imagine a business purchases an insurance policy on January 1 and pays the premiums for the whole year upfront. Under the cash accounting standard, the premium for the whole year will be recognized in the month of January whereas under the accrual standard only 1/12 of the premium will be recognized in January (because only 1/12 of the benefit was incurred that month).
Revenue: Imagine a business receives a wholesale order for $100,000 on January 1, they require a 50% deposit upfront, and the remainder isn’t paid until March 1 which is when the goods are actually shipped out. Under the cash accounting standard, $50,000 of revenue would be recognized in January and the other $50,000 would be recognized in March. By contrast, under the accrual accounting standard all $100,000 would be recognized in March (because that is when the revenue is actually earned).

Why does this matter to our users?

The significance for our users is more on the expense side than on the revenue side. In e-commerce there are a lot of expenses that are only charged long after they are incurred, and often these same expenses are bundled together and charged as lump sums. This can make it very difficult for an e-commerce operator to understand their true profitability. For example, perhaps your 3PL is processing orders for you all month long but they only send you an invoice 15 days after the close of the month, and the invoice must be paid within 15 days of receipt. So that charge won’t actually hit your credit card until a month after the last orders have been processed. If you’re looking at your profit and loss on a cash basis, you’ll be missing all of those costs (or, more accurately, you’ll be seeing costs from earlier time periods against revenues from the current time period). Similar dynamics exist for cost of goods sold, shipping, and even advertising.

What’s the difference between an “item” and an “account”?

FinHub uses the Plaid API to securely connect to bank accounts and credit cards. In Plaid’s structure, an “item” means a particular set of login credentials to a particular financial institution, whereas an “account” means a specific account that can be accessed with those credentials. For example, a user might have one set of login credentials for Bank of America, and they use those credentials to access their business checking account, business savings account, and Visa account. That would be one item and three accounts.

What is the “Link Modal”?

When a user connects their bank or credit card account to FinHub they will see a modal window like this:

This modal window is referred to as the “Link Modal”. The Link Modal is served by Plaid, which means that we have a limited degree of control over how this modal looks and behaves.


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