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API Integration

Integration

API integration is the process of connecting software applications through their Application Programming Interfaces (APIs), enabling automated data exchange and functionality sharing between systems without manual intervention.

Category Integration
Related Terms 3 connected concepts

What Is API Integration?

API integration connects software applications through their APIs (Application Programming Interfaces), enabling them to communicate and share data automatically. Instead of manually exporting data from one system and importing it into another, API integration creates a direct, automated connection.

APIs define:

  • What data and functionality are available
  • How to request information
  • What format responses will take
  • Authentication and security requirements

How APIs Work

Request

One system sends a request to another:

GET https://api.example.com/customers/123
Authorization: Bearer token123

Response

The receiving system returns data:

{
  "id": 123,
  "name": "Acme Corp",
  "revenue": 500000,
  "status": "active"
}

Common API Types

REST APIs

  • Most common type today
  • Uses HTTP methods (GET, POST, PUT, DELETE)
  • Returns JSON or XML
  • Stateless interactions

GraphQL APIs

  • Request exactly the data you need
  • Single endpoint for all queries
  • Reduces over-fetching

SOAP APIs

  • Older, more rigid standard
  • XML-based messages
  • Common in enterprise systems

Webhooks

  • Push-based notifications
  • System sends data when events occur
  • Real-time updates

API Integration Use Cases

ERP Integration

Connect to NetSuite, QuickBooks, SAP:

  • Pull financial transactions
  • Sync customer/vendor data
  • Post journal entries

CRM Integration

Connect to Salesforce, HubSpot:

  • Pull sales pipeline data
  • Sync customer records
  • Track deal progression

Banking Integration

Connect to bank APIs:

  • Pull transaction feeds
  • Check balances
  • Initiate payments

Database Integration

Connect to cloud databases:

  • Query data directly
  • Sync changes
  • Build real-time dashboards

API Integration Challenges

Authentication Complexity

Different APIs use different methods:

  • API keys
  • OAuth 2.0
  • JWT tokens
  • Basic authentication

Rate Limiting

APIs restrict request volume:

  • Requests per minute/hour
  • Requires batching and pacing
  • Retry logic for limit errors

Data Mapping

Translating between systems:

  • Field names differ
  • Data types vary
  • Business logic differences

Error Handling

APIs fail in many ways:

  • Network timeouts
  • Authentication expiration
  • Data validation errors
  • Service outages

Versioning

APIs change over time:

  • New versions released
  • Old versions deprecated
  • Breaking changes occur

Documentation Quality

API documentation varies:

  • Some excellent, some poor
  • Examples may be outdated
  • Edge cases undocumented

Build vs. Buy Decision

Build Custom Integrations

Pros:

  • Full control
  • Exact requirements met
  • No vendor dependency

Cons:

  • Requires engineering resources
  • Ongoing maintenance burden
  • Time to build

Use Integration Platform

Pros:

  • Pre-built connectors
  • Faster implementation
  • Maintained by vendor

Cons:

  • May not fit all requirements
  • Vendor dependency
  • Subscription costs

How Go Fig Handles API Integration

Go Fig eliminates API integration complexity:

100+ pre-built connectors: We’ve already built integrations to common systems

Authentication handled: We manage OAuth flows, token refresh, and credentials

Error recovery: Automatic retries, alerting, and graceful degradation

Rate limit management: Intelligent pacing to avoid limits

Schema mapping: We translate data to your semantic layer

New integrations: If we don’t have a connector, we build it in two weeks

You describe what data you need; we handle the API complexity.

API Integration Best Practices

  1. Start with documentation: Understand the API before building
  2. Handle errors gracefully: Plan for failures
  3. Respect rate limits: Don’t hammer APIs
  4. Secure credentials: Never expose API keys
  5. Log everything: Debug issues with good logs
  6. Monitor health: Know when integrations break
  7. Plan for changes: APIs evolve; build flexibility

Put API Integration Into Practice

Go Fig helps finance teams implement these concepts without massive IT projects. See how we can help.

Request a Demo