API integration enables real-time data exchange, direct system connectivity, and dynamic reporting but requires significant technical effort, careful handling of rate limits and payload size, and resilience to third-party service disruptions. SFTP is ideal for large batch transfers, offering ease of setup, broad compatibility, and secure file handling, though it lacks real-time interaction and may introduce manual errors. APIs suit event-driven updates, while SFTP works best for historical imports and data warehousing. The choice impacts reporting performance and depends on organizational needs, scalability, and available resources.

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