Bridging operations and finance

Hardfin is an operational system that tracks the complete lifecycle of every asset from inception to disposal in real-time. This approach differs from traditional accounting ledger systems that organize financial data into discrete periods of time. Understanding this distinction helps you use Hardfin effectively and integrate operations data properly into your finance workflows.

Did you know? Hardfin is specifically designed to bridge the gap between operations (real-time) and accounting (period-based).

Two worlds, two clocks

A hardware-as-a-service (HaaS) business needs to operate on two different systems simultaneously:

Dimension	Hardfin "real time" operations (subledger)	Accounting "fixed period" (general ledger)
Time concept	Continuous, life-to-date (every asset from day one)	Fiscal periods (month / year buckets)
Data stored	All transactions since inception	Net movements per period; income/expense reset each period
Lock meaning	“Everything up to this date is reconciled.”	“This fiscal period is closed and totals won't change.”
Primary users	Operations, project managers, field teams	Finance, accounting, auditors
Update frequency	Real-time as events happen	Period-end close (monthly, quarterly, annually)
Historical view	Complete transaction history always accessible	Prior periods closed and summarized

Real-time operational tracking

Hardfin maintains a complete, cumulative view of your business operations. When you look at asset data or project information in Hardfin, you're seeing:

• Life-to-date history: Every asset tracked from the moment it enters inventory, through deployment, service, and eventual disposal

• Continuous timeline: No artificial breaks between reporting periods—just one unbroken record of what happened when

• Point-in-time queries: The ability to ask “what did my inventory look like on March 15th?”

• Always additive: New information extends or adjusts the historical record without disrupting data

This operational approach especially serves teams who need to answer questions about physical reality: Where is asset #12345 right now? Which projects have deployments scheduled for next week? How many units do we have in inventory at each warehouse location?

Why real-time matters for operations

Hardware-as-a-service businesses face unique operational challenges:

• Assets move constantly between warehouses, customer sites, service depots, and return facilities

• Project timelines shift based on supply chain delays, installation schedules, and customer readiness

• Service obligations vary based on knowing precisely which equipment is deployed where and under what terms

• Billing is dependent on tracking the exact dates assets were assigned to customer projects

Traditional monthly accounting close cycles don't provide the responsiveness operations teams need. A field technician can't wait until month-end close to know which spare parts are available. A project manager needs real-time visibility into asset fulfillment status to coordinate installations. The world can't stop turning if an asset is shipped on December 31, but the shipment isn't recorded until January 1.

Accounting period locks

The accounting system, by contrast, organizes financial data into discrete fiscal periods (typically months, quarters, and years). This structure serves a different purpose:

• Period boundaries: Clear start and end dates defining when transactions belong to each reporting period

• Close process: A formal procedure that locks a period once all transactions are recorded and reconciled

• Financial statements: Income statements and cash flow reports that reset each period

• Balance sheets: Point-in-time snapshots showing cumulative assets, liabilities, and equity

Accounting periods enable financial reporting and compliance: producing consistent financial statements, filing tax returns, reporting to investors, and maintaining audit trails.

Why periods matter for finance

Accounting period structures evolved to solve critical business needs:

• Accrual accounting: Matching revenue and expenses to the periods when they're earned or incurred, regardless of cash timing

• Management accountability: Evaluating business performance period-by-period to measure progress

• Regulatory compliance: Tax authorities and financial reporting standards require period-based reporting

• Audit requirements: Auditors need finalized, unchanging records to verify and certify

Once an accounting period closes, the numbers don't (or shouldn't!) change. This stability provides confidence in financial reporting but conflicts with the continuous nature of operations. Traditional operational systems for asset tracking can't provide the level of certainty that a period-based accounting system can. Hardfin is specifically designed to bridge that gap.

How they work together

Hardfin's cumulative-to-date operational view represents a similar view to your general ledger's sum of all closed periods up to date—just expressed differently. The key is understanding how the "right now" view for operations compares to the "locked" view for finance, and how to bridge between Hardfin's real-time operational view and your accounting system's period-based view.

From operations to accounting

Hardfin doesn't enforce fiscal period boundaries the way a general ledger does. Your operational data in Hardfin is always shown in real-time, based on all the latest information entered in the system. This flow happens continuously in Hardfin as operational events occur, so that the operations team is always seeing the most up-to-date information.

Data will later flow into your accounting system through defined integration points:

• Inventory movements (shipments received, assemblies built, assets deployed) feed inventory accounting and cost basis calculations

• Asset deployments and sales trigger asset capitalization or cost of goods sold recognition

These events are cumulated in order to be exported to the accounting system when the period is closed.

Reconciliation and period close

At period end, the two systems reconcile to ensure alignment:

• Inventory reconciliation: Hardfin's inventory counts as of period end should match your general ledger inventory balance

• Asset value reconciliation: Hardfin's asset snapshots for fixed assets should align with fixed asset balanced

Once reconciled, the accounting team locks the period. Hardfin stores the locked data in order to reconcile the next period. This period review and approval marks operational data as reviewed and confirmed:

• “Everything up to this date is reconciled” provides a reference point for financial reporting

• Operations continue uninterrupted even while historical data is marked as reconciled

• Audit trail remains intact so you can always see what happened and when

• Future reconciliations build on prior locked data, without reopening historical periods

Meanwhile, Hardfin continues tracking operations in real-time without interruption. This approach provides the best of both worlds: operations teams get the flexibility to track operations in real-time, while finance gets the stability they need for period close.

Practical implications

Understanding these two worlds helps you use Hardfin more effectively:

For operations teams

• There are no periods: Record asset movements, project updates, and time tracking as events happen

• Trust real-time data: Your current view in Hardfin reflects operational reality, not an outdated snapshot

• Plan continuously: Use Hardfin's real-time visibility to coordinate logistics, schedule installations, and manage inventory

• Respond to change as needed: Update project timelines, asset assignments, and resource allocation as conditions evolve

For finance teams

• Establish reconciliation cadence: Decide how often to reconcile Hardfin data with the general ledger (monthly recommended)

• Define integration points: Set up your ledger accounts so Hardfin data feeds your GL appropriately

• Use Hardfin exports: Leverage Hardfin's reporting and export capabilities to extract period-specific data

• Have confidence in audit trail: Use the reconciliation process to retain records showing how operational data translates to financial entries

For leadership

• Two views, one truth: Operations dashboards and financial statements may show different perspectives, but both accurately represent the business

• Complementary insights: Use Hardfin for operational metrics (unit counts, project timelines, deployment cycles) and accounting systems for financial metrics (gross margins, EBITDA)

• Operational execution: Being disciplined about entering operational data helps ensure that everyone is on the same page

• Integration investment: Properly connecting operational and financial systems reduces manual reconciliation work and improves data accuracy

Best practices

To effectively bridge operational and accounting systems:

1. Document your integration: Clearly map which Hardfin accounts correspond to your general ledger accounts

2. Reconcile regularly: Monthly reconciliation reconciles discrepancies early before they compound

3. Standardize timing: Agree on when operational events should be recorded

4. Train cross-functionally: Help operations teams understand accounting requirements and finance teams understand operational realities

By respecting the different roles these systems play while ensuring they stay aligned, you get the best of both worlds: real-time operational visibility for execution, combined with reliable financial reporting for governance and compliance.