UK-based business financial platform Tide has upgraded its ‘Tide Accounting’ tool, which is powered by Sage, streamlining the accounting process for small businesses.
The upgrade means that Tide Accounting has become the first fintech service in the UK to introduce accrual-based accounting, Tide claimed.
Accrual-based accounting recognises revenue when it is earned and expenses when they are incurred.
It means that Tide members can now get paid, manage their bills, track their business performance and file their taxes in one place – via an embedded accounting service directly from their Tide account.
Tide Accounting was launched last year by Tide for cash accounting.
Vinay Ramani, chief product officer at Tide, said that accounting can be “very time-consuming and intimidating” for small business owners, given they have to move transactions from their bank account to their accounting tools.
“Tide Accounting introduces accrual-based accounting embedded in a bank account – unlocking real convenience and ease of use without the stress and hassle,” said Ramani.
“And once their accounting is done well – those businesses become more attractive for credit opportunities via the Tide Partner Credit marketplace. In this way our strategy to help a small business with their overall banking, finance and admin needs comes to life.”
Currently, new members opening an account through Tide’s ‘Company Formation’ service will receive six-months of free access to Tide Accounting.
“We are pleased Tide chose Sage Accounting and Compliance-as-a-Service (ACaaS) as a key component of their Tide Accounting offering, enabling small businesses to do their business banking, bookkeeping and accounting in one seamless experience,” Neil Watkins, executive vice president, product at Sage, added.
“Today’s newest development to support accrual-based accounting will help even more small businesses simplify their money admin, to radically simplify their essential bookkeeping and accounting tasks.”
Tide has more than 500,000 SME members in the UK, which equates to an approximate 10% market share, and over 100,000 SMEs in India.
Recently, Tide committed to help 200,000 female-led businesses start out by the end of 2027, after finding that 53% of women in the UK find it challenging to start their own business.