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How It Works

Business activity flows in → Thred processes it → Reports update automatically 
Invoice sent
    ↓
Journal Entry:
DR  Accounts Receivable  £1,000
  CR  Revenue              £1,000
    ↓
P&L shows £1,000 revenue
AR balance increases £1,000
When payment received: 
Payment posted
    ↓
Journal Entry:
DR  Bank Account         £1,000
  CR  Accounts Receivable  £1,000
    ↓
Cash increases £1,000
AR balance cleared

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Automatic Processing

Thred handles: Double-entry bookkeeping - Every transaction creates balanced journal entries using the chart of accounts. Account categorization - Transactions automatically post to correct accounts based on transaction type and business context. AR/AP tracking - Outstanding balances calculated automatically from invoices, bills, and payments. Tax calculations - VAT/sales tax extracted and tracked per jurisdiction rules. Reconciliation - Bank transactions match to invoices and bills using AI-powered matching.

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What Your Users See

The embedded UI shows:
  • Real-time dashboard - Cash position, profit margins, runway
  • Financial reports - P&L, balance sheet, cash flow
  • AR/AP aging - What’s owed and when it’s due
  • Bank transactions - All synced transactions with categories
  • Tasks - Items needing review (mismatches, uncategorized transactions)

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User Actions

Users can:
  • Review and approve suggested categorizations
  • Handle reconciliation exceptions
  • View detailed transaction history
  • Export reports (PDF, CSV)
  • Manage customers and vendors
They can also work with Thred’s bookkeeping service (if subscribed) via chat or scheduled calls within your platform. Next: Understanding the accounting tabs.