Embedded Accounting: The Opportunity for Accountants

More and more small businesses are recording income and expenses directly in the banking and business apps they use every day.

However, this does not make professional accounting advice unnecessary.

In fact, it can create new opportunities to support customers, especially for those still building confidence in digital record keeping.

Customers continue to need your expertise to assess what they have recorded, identify what is missing, and understand what this means for their business.

In this article, you’ll learn what embedded accounting means for your practice, how you can help clients use it and reap its benefits, and how Sage helps accountants and bookkeepers stay on top of the file.

Here’s what we’ll cover:

What is Embedded Accounting?

Embedded accounting means accounting features are built directly into the banking, fintech, and business software platforms your customers already use.

Depending on the platform they choose, this could involve capturing receipts, categorizing transactions, or creating invoices in the same app they use to manage their money.

Many small businesses want to manage more of their day-to-day administration through a single platform.

Embedded accounting responds to this need by bringing accounting to the places where they already manage business activities.

What could embedded accounting mean for your practice?

You know how much time it takes to chase down receipts or get a clear explanation from a customer about a payment they made months ago.

Integrated accounting helps clients create cleaner, digitized records from day one, giving you a better starting point for review.

Capturing information during the process also helps establish healthy digital habits, with Making Tax Digital (MTD) preparation for income tax built into the process from the start.

This can mean being less behind at the end of the quarter or year, when customers may have forgotten the details.

Another big advantage is the ability to review these records without having to learn a different process for each customer app.

A consistent workflow gives you new insight into the data recorded by customers and the opportunity to fix errors or missing information.

Clients can take care of day-to-day bookkeeping while you maintain the professional oversight they rely on.

Embedded accounting also gives you the opportunity to support new customers through the platforms they already use.

Small businesses can more conveniently keep their daily records in their existing apps, but still need the help of an accountant.

They can build a relationship around the support they need now and grow it as their business grows.

How to support customers who already use embedded accounting

Your customers may not call it “embedded accounting.”

Instead, they may tell you that they have already categorized transactions or uploaded receipts in their banking app.

First, ask what platform they use and how they use it.

This should give you an idea of what information is available and what support they may need.

Next, set up your access to your documents.

You will need to agree with your client on the appropriate permissions and understand where their platform supports accountant access or connection to the tools you use.

Confirm what information will be shared and whether changes will update the underlying customer record so you both understand how you will work together.

Then think about what the app didn’t capture.

Has the customer used other accounts or cards? Did they personally pay for business expenses?

Are there cash payments? These questions will help you determine whether the records reflect the broader business operations.

Reviewing the records brings everything together.

For the time period you reviewed, verify that transactions are supported, categorization is appropriate, and gaps have been resolved.

For example, a payment marked as a business expense may require clarification of what was purchased and how it was used before you can make the proper adjustments.

Establish a regular rhythm for resolving questions with your customer.

Be clear about the responsibilities for providing information, reviewing entries, and processing submissions to keep the work moving throughout the year.

How Sage keeps accountants connected to the files

Sage’s role in the development of embedded accounting is to connect the place where your embedded accounting customers keep their records with the tools you use to support them.

Sage for Accountants’ period review feature provides accountants with a single, unified workflow for reviewing client data and preparing records prior to filing.

It connects your verification work to the records your customer manages in their connected partner app.

You can search, sort and update records in bulk within a consistent review experience, whether records come from Sage general ledgers or Sage’s embedded accounting partner apps.

Backed by Sage-backed accounting standards, this helps you improve data quality throughout the year and build confidence that records are ready for submission.

Even if you don’t use the full version of Sage for Accountants today, you can still support clients with embedded accounting and integrate them directly into their activities.

Sage’s Period Review is now available for free in the software.

You can leverage the same visibility, quickly review and correct records without having to learn a new workflow or app for each customer. Sage Period Review for Accountants is designed by accountants for accountants.

The connection and functionality available depends on the platform your customer uses.

You can access period review from Sage for Accountants.

Get started today

If your practice isn’t already using Sage for Accountants, it’s easy to sign up and get started so you can make Period Review part of the way you work.

A new beginning to a deeper connection

Integrated accounting gives your customers the freedom to choose the products that suit them without having to change their starting point.

Sage for Accountants keeps you connected to their records so you can help them grow their business.

And there will be opportunities to do even more.

Future integrations will mean more tools and features as Sage continues to work with more platforms that your current and potential customers use to manage their money.