How does an API Work in practice?

An API acts as a bridge between two systems that speak different languages. Let’s take the example of a webshop selling products online. The webshop's software is designed to handle everything from product displays to customer transactions. If you want to connect this webshop with an accounting system so both systems can exchange data automatically, you would typically use an API.

Types of APIs

• REST API: The most common type of API, which communicates over HTTP and is used to retrieve or send data between systems.
• SOAP API: An older but still used API format that utilizes XML for data exchange.
• GraphQL: A newer type of API that allows you to request exactly the data you need without transferring unnecessary information.

Practical use of APIs in accounting and webshops

When running a webshop, an API can be integrated to connect your webshop with an external accounting system.

APIs can also be used to keep inventory levels updated. If an item is purchased on the webshop, the API can automatically send information about the stock to both the webshop and the accounting system, preventing you from selling items that are no longer in stock.

APIs also enable the automation of many administrative processes, reducing human errors and increasing efficiency in your business.

The importance of APIs for accounting and webshops

APIs are essential for system integration in today’s digital world. For businesses running webshops, APIs provide a practical and efficient way to automate complex processes, reduce manual input, and minimize errors. They also enable fast data synchronization between different systems, which would otherwise require extensive manual handling.

By implementing APIs in your business, you can improve workflows and ensure that your systems are always up-to-date and synchronized. This is especially important for the integration between webshops and accounting systems, where accurate and timely data exchange can have a significant impact on the financial health and efficiency of the business.