UK business banking platform Tide has formed a partnership with Sage, provider of cloud business management solutions, to offer its UK self-employed and business owner members with a new product that combines banking and accounting.
The integrated banking and accounting tool will be offered through the Tide app and is designed to help reduce the amount of time that small business owners spend managing their finances and carrying out admin tasks.
The partnership will connect banking data and Tide’s existing finance and admin tools to Sage’s accounting and compliance services, streamlining financial and compliance processes, such as self-assessment and year-end accounts, for Tide members.
Tide confirmed that it will trial the accounting and compliance solution with its 340,000 members later this year.
Oliver Prill, Tide CEO, said: “Adding Tide Accounting to the Tide platform is a huge step towards our mission to make life easier for people who work for themselves, saving them time (and money) on their financial admin.
“Tide has chosen to work with Sage to deliver this product due to Sage’s long and impressive record in accounting and compliance and their strategic alignment with Tide. We share a similar customer base, and combining our expertise will bring the right technology solutions to small business owners at the right time.”
Research conducted by Sage UK in January 2021 among 2,500 individuals found that financial constraints and worries are the most common barriers preventing people from starting their own business.
It also revealed that many start-ups and small business owners are worried about getting their tax and accounting wrong ,and the subsequent penalties they would face.
Neal Watkins, EVP of small business segment at Sage, added: “Many entrepreneurs are held back from starting a new business by fears around getting their tax right, but with this new offering, accountancy and compliance will become a simple and seamless service, meaning that the business owner can sleep easy knowing that they’re getting their tax right.”
Tide recently announced it will launch an invoice assistant to crack down on the issue of late payments to small businesses.