Embedded accounting: The opportunity for accountants

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

But that doesn’t remove the need for professional accounting advice.

In fact, it can create new opportunities to support clients, particularly those who are still building confidence with digital record-keeping.

Clients still need your expertise to assess what they’ve recorded, identify what’s missing, and understand what it means for their business.

This article breaks down what embedded accounting means for your practice, how to support clients using it and take advantage of its benefits, and how Sage is helping accountants and bookkeepers stay connected to the record.

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 clients already use.

This could look like capturing receipts, categorising transactions, or creating invoices within the same app they use to manage their money, depending on their chosen platform.

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

Embedded accounting responds to that need by bringing record-keeping into the places where they already manage business activity.

What embedded accounting could mean for your practice?

You know how much time it takes chasing receipts or getting a clear explanation from a client about a payment they made months ago.

Embedded accounting helps clients build cleaner, digitised records from day one, giving you a better starting point for review.

Capturing information as they go also helps establish healthy digital habits, with Making Tax Digital (MTD) for Income Tax readiness built into the process from the start.

That can mean less chasing at quarter or year-end, when clients may have forgotten the details.

Being able to review those records without learning a different process for every client’s app is another big benefit.

A consistent workflow gives you new visibility into what clients have recorded and a way to address errors or missing information.

Clients can handle everyday record-keeping while you retain the professional oversight they rely on.

Embedded accounting also creates an opportunity for you to support new clients through the platforms they already use.

Small businesses can be more comfortable keeping everyday records in their existing apps but still need an accountant’s help.

You can build a relationship around the support they need now and develop it as their businesses grow.

How to support clients already using embedded accounting

Your clients may not call it “embedded accounting.”

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

Start by asking which platform they use and how they’ve been using it.

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

Next, establish your access to their records.

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

Confirm what information is shared and whether amendments update the underlying client record, so you both understand how you will work together.

Then consider what the app hasn’t captured.

Has the client used other accounts or cards? Have they paid business expenses personally?

Are there cash payments? These questions help you establish whether the records reflect the wider business activity.

Reviewing the records brings it all together.

For the period you are reviewing, check that transactions are supported, categorisation is appropriate, and gaps have been addressed.

For example, a payment labelled as a business expense may need clarification about what was purchased and how it was used before you can make the correct adjustments.

Set a regular cadence for resolving queries with your client.

Get clear about responsibilities for supplying information, reviewing entries, and handling submission to keep the work moving throughout the year.

How Sage keeps accountants connected to the record

Sage’s role in the embedded accounting evolution is to connect the place your embedded accounting clients keep their records with the tools you use to support them. 

Sage for Accountants’ Period Review capability provides accountants with a single, unified workflow for reviewing client data and preparing records before filing.

It connects your review work to the records your client maintains in their connected partner app.

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

Supported 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 using embedded accounting and plug directly into their activity.

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

You can leverage the same visibility, review, and correct records with speed, all without learning a new workflow or app for every client. Sage Period Review for Accountants was built for accountants, by accountants.

The connection and functionality available will vary depending on the platform your client uses.

You can access Period Review through 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 start making Period Review part of the way you work.

A new start to a deeper connection

Embedded accounting allows your clients to keep the freedom of choosing the products that suit them without changing where they start.

Sage for Accountants keeps you connected to their records, so you can support them as their business develops.

And there will be opportunities to do more.

 Future integrations will mean more tools and capabilities as Sage continues to partner with more of the platforms your current and potential clients use to manage their money.

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