> ## Documentation Index
> Fetch the complete documentation index at: https://docs.thredfi.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Embedded Accounting

> How bookkeeping works after integration

## 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
```

## 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.

## 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)

## 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.