Published: January 2026

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As your business grows, so does the complexity of your finances. What started as simple bookkeeping becomes monthly reporting, cash flow forecasting, payroll for a growing team, BAS lodgements, and eventually questions that need strategic thinking rather than just data entry.

The traditional path is to hire. First a bookkeeper, then maybe a finance manager, and eventually a CFO when you can afford one. But this approach has problems for most Australian SMEs.

A good bookkeeper costs $70,000 to $90,000 per year fully loaded. A capable finance manager runs $100,000 to $140,000. A CFO, even part-time, adds another $150,000 or more. Before you know it, you are spending $200,000 to $300,000 on finance staff, and you still might have gaps in capability.

There is another way. The embedded finance model gives you access to bookkeeping, financial operations, and strategic CFO support without the cost and risk of building an internal team.

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The problem with the traditional hiring path

Most SMEs follow a predictable pattern:

- Stage 1: The founder does everything, including bookkeeping, in the evenings and weekends.

- Stage 2: They hire a part-time bookkeeper to handle transaction processing and BAS.

- Stage 3: The bookkeeper becomes full-time as volume grows, but strategic questions go unanswered because bookkeepers are not trained for that.

- Stage 4: The founder realises they need someone more senior. They hire a finance manager or controller.

- Stage 5: The finance manager is good at reporting but not at strategy. The founder still lacks a thinking partner for big decisions.

- Stage 6: The business finally hires a CFO, years after they actually needed one.

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At each stage, there are gaps. The bookkeeper cannot answer questions about pricing strategy. The finance manager can produce reports but may not know what to do with them. And by the time you hire a CFO, you have already made decisions without proper financial input.

The other problem is management. Every hire needs onboarding, training, performance management, and coverage for leave. If your bookkeeper resigns, you are scrambling to find a replacement while BAS deadlines loom.

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The embedded finance model

The embedded finance model works differently. Instead of hiring individuals to fill roles, you engage a finance partner who provides a team with the right mix of skills.

A typical embedded arrangement includes:

• Transaction processing and bookkeeping. Day-to-day coding, reconciliations, accounts payable and receivable, payroll processing.
• Monthly reporting. Profit and loss, balance sheet, cash flow, with commentary on what the numbers mean.
• Cash flow management. Forecasting, monitoring, and flagging issues before they become problems.
• Compliance. BAS preparation and lodgement, payroll tax, superannuation, workers compensation.
• Strategic support. Budgeting, scenario modelling, pricing analysis, support for major decisions.

The key difference is integration. An embedded partner is not an external accountant you see once a quarter. They are part of your operations, available daily via Slack or Teams, attending key meetings, and understanding your business deeply.

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Cost comparison

The economics are compelling for most SMEs.

Traditional hiring model:

• Full-time bookkeeper: $70,000 to $90,000 (including super and oncosts)
• Part-time finance manager or controller: $50,000 to $70,000
• Part-time CFO advisory: $50,000 to $100,000
• Total: $170,000 to $260,000 per year

Plus recruitment costs, leave coverage, training, and management time.

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Embedded finance model:

• Monthly retainer: $3,000 to $10,000 depending on complexity
• Annual cost: $36,000 to $120,000

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That represents savings of 40% to 60% while accessing a broader range of skills. You get the bookkeeper, the strategic thinking, and everything in between, without the overhead of managing multiple employees.

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What embedded finance looks like in practice

Here is how it typically works:

- Daily operations. Your finance partner has access to your accounting system (usually Xero or MYOB) and processes transactions as they occur. They are available for questions throughout the day.

- Weekly rhythm. A quick check-in to discuss cash flow, any issues, and upcoming deadlines.

- Monthly reporting. Within the first or second week of each month, you receive a reporting pack showing how the previous month went. Not just numbers, but commentary on what drove the results and what to watch.

- Quarterly reviews. A deeper session to review performance against budget, update forecasts, and discuss strategic questions.

- Ad hoc support. When you are considering a major decision, whether hiring, pricing changes, new equipment, or expansion, your finance partner helps you think through the numbers.

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The goal is that you always know where you stand financially, without having to chase information or wait for your accountant to be available.

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Who this model suits

Embedded finance works well for:

• Businesses with 5 to 50 employees. Big enough to need proper finance operations, not big enough to justify a full internal team.
• Revenue of $1 million to $20 million. Enough complexity to need support, not so large that you need dedicated specialists.
• Growing businesses. Where the finance needs are changing and you need flexibility to scale support up or down.
• Founders who want to step back from finance. You started the business to do something other than bookkeeping. Hand it off properly.
• Businesses preparing for investment or exit. Where financial rigour matters and you need to get your house in order.

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Who this model does not suit

Embedded finance may not be the right fit if:

• You need a full-time physical presence. Some businesses need someone on-site every day for operational reasons.
• Your industry has highly specialised requirements. Certain sectors like funds management or complex manufacturing may need deep specialist expertise.
• You are very early stage. If you are pre-revenue or just starting out, basic bookkeeping may be all you need.
• You want to build internal capability. Some businesses strategically want to develop their own finance team, even if it costs more.

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Signs you have outgrown your current setup

Consider embedded finance if:

• Your bookkeeper is great at data entry but cannot answer strategic questions
• You are always chasing financial information instead of having it come to you
• BAS and payroll deadlines cause stress every time
• You do not have a clear picture of profitability by product, service, or client
• Cash flow surprises keep happening
• Your accountant only contacts you at tax time
• You are making big decisions without financial analysis
• You are spending too much of your own time on finance tasks

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Questions to ask when evaluating providers

If you are considering embedded finance, look for:

• Breadth of capability. Can they handle both the transactional work and the strategic thinking? Or will you still have gaps?
• Integration. Will they actually embed in your operations, or just process transactions at arm's length?
• Communication. How will you interact day-to-day? What is the response time for questions?
• Systems expertise. Are they experienced with your accounting software and industry?
• Scalability. Can they grow with you as your needs change?
• Team structure. Who will actually do the work? Will you have consistent contacts or deal with whoever is available?

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Frequently Asked Questions

What is the difference between embedded finance and a bookkeeper?

A bookkeeper focuses on transaction processing: coding expenses, reconciling accounts, and preparing BAS. Embedded finance includes bookkeeping but also provides monthly reporting, cash flow management, and strategic support. It is a complete finance function rather than a single role.

How much does embedded finance cost?

Monthly retainers typically range from $3,000 to $10,000 depending on the size and complexity of your business. This compares to $170,000 to $260,000 or more for a combination of bookkeeper, finance manager, and part-time CFO.

Will I still need an accountant?

Yes, for tax returns and compliance advice. Embedded finance handles your day-to-day operations and reporting, but you will still need a tax accountant for annual returns, tax planning, and compliance advice. Many embedded finance providers work alongside your existing accountant.

How does communication work?

Most embedded arrangements include daily access via Slack, Teams, or email, with scheduled weekly or fortnightly check-ins. You should be able to get answers to questions within hours, not days.

Can embedded finance handle payroll?

Yes. Most providers include payroll processing, superannuation, and payroll tax as part of their service. This is often one of the first things businesses hand over.

What if my needs change?

The embedded model is flexible. You can typically scale support up or down as your business changes, without the complexity of hiring or making roles redundant.

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How Scale Suite Delivers Embedded Finance

Scale Suite provides embedded finance support to Australian SMEs. Our model combines:

• Daily operations. Transaction processing, accounts payable and receivable, bank reconciliations, payroll.
• Monthly reporting. Profit and loss, balance sheet, cash flow, with clear commentary on performance.
• Strategic support. Budgeting, forecasting, scenario analysis, and support for major decisions.
• Compliance. BAS preparation, payroll tax, superannuation, workers compensation.
• Integration. We work in your systems, communicate daily, and operate as part of your team.

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We work with businesses across Australia, typically those with 5 to 50 employees who need proper finance operations without the cost of building an internal team.

If you are wondering whether your business has outgrown its current finance setup, we are happy to discuss your situation. Contact us at hello@scalesuite.com.au or visit scalesuite.com.au.

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This article provides general information about finance operations for Australian businesses. Individual circumstances vary, and you should consider your specific needs when evaluating options.

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