Monite , a Germany-based embedded finance startup, has partnered with Codat , a universal API for small business data, to integrate accounts payable (AP) and accounts receivable (AR) capabilities into its apps. Monite and Codat’s partnership enables Software-as-a-Service (SaaS) platforms and financial institutions to integrate invoicing and billing functionality into their offering, creating a fully connected and unified one-stop shop for businesses to manage their operations and their finances.

The combination of Monite’s APIs for ready-to-run fintech apps and Codat’s API for seamless integration to third party small and medium-sized enterprises (SME) apps, creates the potential for rapid launches of new apps that cater to a broad range of small and medium-sized businesses (SMB) needs in one place. Codat’s integration with Monite ensure that key financial data isn’t siloed and flows freely and automatically between systems – which means businesses can be managed from a single source of truth. Codat’s API enables providers to connect to apps relevant to small businesses, such as Quickbooks, Oracle Netsuite, Xero, Square, Shopify, and Sage.

Monite is a finance automation provider targeting organisations considering offering fintech solutions but who do not want to incur the cost and risk of internal development. Its offerings enable business-to-business (B2B) brands to embed new finance features such as invoicing, AP automation, expense management, and more, directly into their existing interface. Bringing everything together On average, small businesses use more than 40 separate applications to manage their finances and operations, from accounting, expenses, and sales, to forecasting and analytics and this number is growing around 30% year on year.

The increase has been driven by the number of new software tools coming to market to help SMBs more effectively execute distinct tasks, in particular the explosion of industry specific software or vertical SaaS, which has grown 10x in market cap since 2010. These apps have become popular because of their ability to cater well to particular industries, but the lack of connectivity between them and the finance software being used, often leads to siloed systems, increasing the workload for small businesses. Software providers must either build or integrate with products for bookkeeping and making payments to avoid business owners needing to spend hours each week transferring data between systems.

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