Accountants in the UK are standing at the intersection of regulation, technology, and client expectation. A recent Wolters Kluwer research shows that 63% of accounting firms with over 75% integrated systems have reported significant revenue growth. The same study found that 74% of cloud-based firms report profit growth compared to 65% of traditional firms. It is now pretty evident that technology isn’t just improving efficiency for accountants, it’s becoming a key tool for stronger client relationships and sustained growth. 

The UK regulatory landscape is accelerating this change. Making Tax Digital (MTD) is moving forward by mandating a digitised tax system. Under this initiative, it is now an obligation to maintain digital records and submit returns through compatible software. This makes cloud-based solutions essential to meet compliance needs. However, the real opportunity lies in leveraging embedded finance to deepen client engagement, diversify services, and ultimately drive profitability. 

Understanding Embedded Finance in the Accounting Context

Embedded finance enables clients to access services like loans, payments, and insurance directly from their accountant’s platform, without redirecting them to a bank or third party. Instead of merely preparing financial statements or tax returns, accountants can help clients act on their financial insights in real time. 

For example, an SME reviewing its quarterly cash flow report could see an offer for a working capital loan tailored to its recent performance, all without leaving the accountant’s dashboard. This immediacy removes friction, accelerates decision-making, and positions the accountant as a proactive problem solver. 

Why It Matters for UK Accountants Today

Recent studies, including the FCA’s work on Open Banking and Open Finance, reveal that SMEs increasingly value personalised, on-demand financial solutions. Traditional lending processes can be slow and cumbersome, often requiring clients to shop around and submit repetitive documentation. 

Accountants already hold rich, verified financial data, making them uniquely placed to help clients access faster, better-fitting finance through embedded channels. By integrating these services, accountants can: 

• Enhance client loyalty through convenience and personalised service 

• Drive new revenue streams via referral fees or commissions 

• Differentiate themselves in an increasingly competitive market 

• Save client’s time by removing the need for separate applications and data submissions 

Strengthening Relationships through Proactive Client Support

At the heart of embedded finance for accountants is relationship building. When accountants move from reactive support to proactive enablement, they become trusted growth partners. 

Consider a client facing a sudden shortfall ahead of a major supplier payment. In the traditional model, the accountant might advise the client to seek external financing, leaving them to research, apply, and wait for approval. 

With embedded finance, the accountant could leverage powerful solutions like Pulse’s Loan Origination System (LOS) directly within their existing system. This technology automates and expedites the loan application and approval process. By harnessing real-time financial data, accountants can present tailored financing options, send their client’s profiles to multiple lenders simultaneously, and monitor approvals. All of this, while ensuring accuracy, efficiency, and compliance with UK regulatory standards. 

In practice, this means a streamlined funding journey. The accountant becomes the enabler of immediate financial solutions, helping the client secure the capital they need to keep operations running smoothly. This level of responsiveness not only solves the immediate problem but also builds lasting trust. Book a demo to learn more. 

Keeping Compliance Front of Mind

While the opportunities are vast, UK accountants must ensure they operate within the FCA’s regulated frameworks. Partnering with FCA authorised lenders and platforms ensures compliance with Consumer Duty requirements, which are all about delivering fair value and good customer outcomes. Accountants acting as introducers, not lenders, can use embedded finance within their professional boundaries. 

Future Outlook for Embedded Finance in Accounting

The next five years are likely to see embedded finance becoming a standard feature in UK accounting software. As SME adoption of digital tools accelerates, accountants who embrace embedded finance early will gain a competitive advantage in both client acquisition and retention. 

Advisory-led practices will thrive in this new environment, moving beyond transactional work to become central growth partners for their clients. Embedded finance will no longer be a value-add; it will be an expectation.