UK-based FinTech company Tide has recently integrated accrual-based accounting into its platform. This new addition is expected to bring significant benefits to its small business customers. The introduction of accrual-based accounting will provide businesses with a more comprehensive and accurate view of their financial health.
Accrual-based accounting is a method that records revenue and expenses when they are incurred, regardless of when the money is actually received or paid. This contrasts with cash-based accounting, where transactions are only recorded when cash is exchanged. By adopting accrual-based accounting, small businesses using the Tide platform can gain a clearer understanding of their overall financial performance, as it considers both immediate cash flow and outstanding payments.
The inclusion of accrual-based accounting within Tide’s services showcases the company’s commitment to enhancing its platform and meeting the evolving needs of its customers. Small businesses often face challenges in managing their finances and making informed decisions, but with this new feature, they will have access to more detailed financial insights, enabling better financial planning and decision-making.
Tide’s move towards accrual-based accounting is likely to attract a wider audience of small business owners who seek greater financial transparency and control. By providing a comprehensive accounting solution, Tide aims to empower entrepreneurs with the tools they need to succeed in today’s competitive business landscape.