For years, as a desktop accounting software user, I dreamed of a way in which my Invoices would automatically become my Customers' Accounts Payable, and visa versa. I could understand why it was a logistical problem on the desktop, but it doesn't seem we are any closer with 'cloud' accounting despite the phenomenal explosion in 'going to the cloud.'
There is absolutely NO reason why two small businesses using the same cloud platform should not be able to have this type of B2B integration. I don't care if you are a QuickBooks user, or a Xero user, if you share the same platform with your own customers then you should be able to integrate with them in this fashion, and they with you.
Think of the time savings....your Invoice maps directly to not only your accounting but your customer's accounting. Your Accounts Receivable always matches their Accounts Payable, and the payments they make hit your bank and clear your receivable simultaneously. In such an environment, bank-feeds are simply a confirmatory afterthought, the actual transactions have crossed the boundaries of space and time, no matter where you and your customer are located.
Of course there is one next step, and that is to go beyond the boundaries of any one accounting-ecosystem. These cloud accounting companies preach about their open API, but it doesn't seem they really mean it when it gets right down to it. Open API should truly mean (or foster) cross platform communication and compatibility.
I want my Xero Accounting Invoice to post in my customer's QuickBooks Accounts Payable just as it did with Xero to Xero or QuickBooks to QuickBooks. Or my QuickBooks Invoice to post in my customer's Xero Accounts Payable. When we have cross-platform connectivity, then that is when we will truly have an Open API that serves the needs of the cloud user.
By they way, I'm not limiting my focus on just QuickBooks and Xero....all you other cloud platforms from A to Z, look out you are on the same list of target applications to open up the cross-platform lines of communication.
Adendum :
Slap My Face!
Xero is ahead of me...they already offer this feature and I just found out about it. Apparently they have had this feature for a year or two, but not too many people are aware of, or use, it.
So your A/R can post directly to your customer's A/P, but it only clears your A/R if they process the A/P thru Xero payments.