{"id":19485,"date":"2024-09-06T15:28:15","date_gmt":"2024-09-06T14:28:15","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=19485"},"modified":"2025-05-07T14:54:00","modified_gmt":"2025-05-07T13:54:00","slug":"allocation-of-tips-act-what-uk-businesses-need-to-know","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/allocation-of-tips-act-what-uk-businesses-need-to-know\/","title":{"rendered":"Allocation of Tips Act\u2014What UK businesses need to know"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tAllocation of Tips Act\u2014What UK businesses need to know\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2024-09-06T15:28:15+01:00\">6 September, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Allocation of Tips Act\u2014What UK businesses need to know\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/allocation-of-tips-act-what-uk-businesses-need-to-know\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/esthercooke\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Esther-Cooke-350x350.jpg\" class=\"entry-author__image\" alt=\"Esther Cooke\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Esther-Cooke-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2021\/04\/Esther-Cooke.jpg 500w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Esther Cooke<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>As a hospitality or service-sector business owner, you understand the hard work your staff puts in and how much customer tips are appreciated. <\/p>\n\n\n\n<p>That&#8217;s why the Allocation of Tips Act 2023 was created\u2014to ensure all businesses properly pass along all customer tips to their employees.<\/p>\n\n\n\n<p>This article outlines the tipping requirements, so you can review your processes and make any necessary adjustments before the new Code of Practice takes effect later this year.<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-the-purpose-of-the-act\" data-level=\"2\">What is the purpose of the Act?<\/a><\/li><li><a href=\"#h-which-businesses-are-affected-by-the-tipping-act\" data-level=\"2\">Which businesses are affected by the Tipping Act?<\/a><\/li><li><a href=\"#h-what-are-your-business-requirements-under-the-act\" data-level=\"2\">What are your business requirements under the Act?<\/a><\/li><li><a href=\"#h-which-tips-qualify-under-the-act\" data-level=\"2\">Which tips qualify under the Act?<\/a><\/li><li><a href=\"#h-complying-with-the-code-of-practice\" data-level=\"2\">Complying with the Code of Practice<\/a><\/li><li><a href=\"#h-what-are-your-employees-rights\" data-level=\"2\">What are your employees&#8217; rights?<\/a><\/li><li><a href=\"#h-conclusion\" data-level=\"2\">Conclusion<\/a><\/li><\/ul><\/div>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-46d869e5-f36b-4b06-8a2c-0ee65a10435b\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-46d869e5-f36b-4b06-8a2c-0ee65a10435b\"\n\t>Download your free small business toolkit and use the checklists and templates to manage your accounting, payroll and HR business admin with ease<\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-purpose-of-the-act\">What is the purpose of the Act?<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/2023\/13\/contents\" target=\"_blank\" rel=\"noopener noreferrer\">Allocation of Tips Act 2023<\/a> became law on 2 May 2023 to amend the Employment Rights Act 1996 and ensure tips are passed on to employees, by prohibiting employers from withholding tips earned by their staff.<\/p>\n\n\n\n<p>Business and Trade Minister, Kevin Hollinrake, commented: &#8220;Whether you are pulling pints or delivering a pizza, this new law will ensure that staff receive a fair day&#8217;s pay for a fair day&#8217;s work\u2014and it means customers can be confident their money is going to those who deserve it.&#8221;<\/p>\n\n\n\n<p>The UK government estimated that an additional \u00a3200 million a year would be paid out to staff that would have previously been deducted by businesses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-which-businesses-are-affected-by-the-tipping-act\">Which businesses are affected by the Tipping Act?<\/h2>\n\n\n\n<p>If you operate a service-based business in the UK and receive service charges, gratuities, or tips on behalf of your staff, you must follow the requirements of the Tipping Act. <\/p>\n\n\n\n<p>This law primarily affects businesses in the hospitality industry, e.g. <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/what-to-expect-owning-a-restaurant\/\" target=\"_blank\" rel=\"noopener noreferrer\">owning a restaurant<\/a>, <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/guide-managing-cafe-coffee-shop\/\" target=\"_blank\" rel=\"noopener noreferrer\">caf\u00e9 or coffee shop<\/a>, bar, hotel, or casino.<\/p>\n\n\n\n<p>The Act seeks to standardise tipping practices and create a level playing field for those businesses that already operate a fair policy. Employees were previously powerless if businesses decided not to pass on tips and gratuities to them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-your-business-requirements-under-the-act\">What are your business requirements under the Act?<\/h2>\n\n\n\n<p>Under the rules of the Allocation of Tips Act 2023, you must:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Pass on all tips, gratuities, and service charges to workers without deductions, except for limited scenarios like <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-for-income-tax-complete-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">income tax<\/a> withholding. This code does not affect existing tax provisions related to tipping. For more details, refer to <a href=\"https:\/\/www.gov.uk\/government\/publications\/e24-tips-gratuities-service-charges-and-troncs\" target=\"_blank\" rel=\"noopener noreferrer\">UK government tax guidance<\/a>.<br><\/li>\n\n\n\n<li>Ensure the fair and transparent distribution of tips when you as the employer controls or significantly influences their allocation.<br><\/li>\n\n\n\n<li>Adhere to the Code of Practice on Fairness and Transparency when distributing or influencing the distribution of tips.<br><\/li>\n\n\n\n<li>Maintain a written policy on tip handling at your place of business and make this policy available to all workers.<br><\/li>\n\n\n\n<li>Maintain detailed records of all tips paid, including how they were allocated among workers. Provide workers with access to these records upon request.<br><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-which-tips-qualify-under-the-act\">Which tips qualify under the Act?<\/h2>\n\n\n\n<p>Whether a tip qualifies under the Tipping Act comes down to the level of your control or influence over the tip distribution. <\/p>\n\n\n\n<p>Tips are considered qualifying if the business either receives the tips directly (such as tips and service charges paid by card) or if you exercise significant control over how tips received by workers are distributed (for example when employers tell staff how to divide cash tips or collect and redistribute tips).<\/p>\n\n\n\n<p>Employer-received tips, like those paid electronically, are your responsibility to distribute fairly to workers. Non-monetary tips can also qualify if you control or significantly influence them, such as casino chips that have a fixed monetary value.<\/p>\n\n\n\n<p>However, not all tips fall under the Tipping Act. Tips that workers receive and keep directly, with no employer involvement, are outside the scope of the Act, as is digital tipping where customers tip staff directly through an app, bypassing the employer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-complying-with-the-code-of-practice\">Complying with the Code of Practice<\/h2>\n\n\n\n<p>The legislation and the supporting <a href=\"https:\/\/www.gov.uk\/government\/publications\/distributing-tips-fairly-statutory-code-of-practice\/code-of-practice-on-fair-and-transparent-distribution-of-tips-html-version%22%20\/t%20%22_blank\" target=\"_blank\" rel=\"noopener noreferrer\"> Code of Practice on Fair and Transparent Distribution of Tips<\/a> was due to come into force in July 2024 but has been delayed until October 2024. The Code of Practice is designed to provide guidance to help you interpret the legislation.<\/p>\n\n\n\n<p>Rather than outlining an exhaustive list of factors, the code establishes broad principles to guide you on what constitutes fairness under the Tipping Act.<\/p>\n\n\n\n<p>The code requires using a clear, objective set of factors to determine tip allocation and distribution that are appropriate for the business circumstances.<\/p>\n\n\n\n<p>You do not necessarily need to allocate the same proportion of tips to all workers to distribute tips fairly. There may be legitimate reasons to allocate different proportions of tips to different workers. <\/p>\n\n\n\n<p>However, you should ensure you give fair consideration to all workers involved in providing customer service, including agency workers.<\/p>\n\n\n\n<p>Factors you may consider include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Type of role or work (e.g. front-of-house versus back-room)<\/li>\n\n\n\n<li>Basic pay and worker engagement<\/li>\n\n\n\n<li>Number of hours worked<\/li>\n\n\n\n<li>Individual or team performance<\/li>\n\n\n\n<li>Seniority or level of responsibility<\/li>\n\n\n\n<li>Length of service<\/li>\n\n\n\n<li>Customer intent<\/li>\n<\/ul>\n\n\n\n<p>It&#8217;s recommended you consult with staff to reach a consensus that the tip policy is reasonable, fair, and clearly communicated. This collaborative process can help identify and address any staff concerns.<\/p>\n\n\n\n<p>It&#8217;s up to you how to circulate the written tipping policy to staff, for example\u2014electronically, such as by email or staff portal, or as a physical document. <\/p>\n\n\n\n<p>Regardless of the format, the policy must be written in plain language and available in an accessible format for any employee upon request.<\/p>\n\n\n\n<p>The Code also recommends you review your tip allocation approach regularly as staff and organisational changes occur.<\/p>\n\n\n\n<p>All customer tips must be distributed to staff no later than the end of the month following the month the tips were received. For instance, if a customer leaves a tip on August 25th, you must distribute that tip to staff by September 30th at the latest.<\/p>\n\n\n<div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-46d869e5-f36b-4b06-8a2c-0ee65a10435b\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-46d869e5-f36b-4b06-8a2c-0ee65a10435b\"\n\t>Download your free small business toolkit and use the checklists and templates to manage your accounting, payroll and HR business admin with ease<\/a>\n<\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-your-employees-rights\">What are your employees&#8217; rights?<\/h2>\n\n\n\n<p>If you need to resolve issues and respond to queries from workers who have not received their expected share of tips, the process should follow the <a href=\"https:\/\/www.acas.org.uk\/acas-code-of-practice-on-disciplinary-and-grievance-procedures\" target=\"_blank\" rel=\"noopener noreferrer\">Acas code of practice on disciplinary and grievance procedures<\/a>.<\/p>\n\n\n\n<p>As an independent statutory body, Acas offers impartial advice on employment rights and obligations. Drawing on its expertise, Acas helps maintain positive relations and resolve workplace disputes. <\/p>\n\n\n\n<p>You and your employees can contact Acas for guidance at any time.<\/p>\n\n\n\n<p>Under the Tipping Act, staff, including agency workers, can enforce their rights through the <a href=\"https:\/\/www.gov.uk\/courts-tribunals\/employment-tribunal%22%20\/t%20%22_blank%22HYPERLINK%20%22https:\/\/www.gov.uk\/courts-tribunals\/employment-tribunal%22%20\/t%20%22_blank\" target=\"_blank\" rel=\"noopener noreferrer\">employment tribunal<\/a> system if the issues remain unresolved. <\/p>\n\n\n\n<p>Complaints may be based on failure to comply with fair allocation, distribution, written tipping policy, or tipping record requirements.<\/p>\n\n\n\n<p>If an employment tribunal finds a complaint about fairness or transparency in tipping is valid, it can issue a public declaration, order you to revise a previous tip allocation, make a non-binding recommendation on a previous allocation, or order you to pay compensation to the affected worker(s) and any other workers at the relevant workplace who did not file a complaint.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\">Conclusion<\/h2>\n\n\n\n<p>To comply with the Allocation of Tips Act, you need a robust and fair process in place where all tips are properly recorded and swiftly distributed to your staff. <\/p>\n\n\n\n<p>Complying with the new Code of Practice will demonstrate your fairness and transparency to everyone in the business, which your employees are sure to value and appreciate.<\/p>\n\n\n\n \n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Get your free small business toolkit<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Need help with accounting, payroll and HR admin for your business? This toolkit comprises free templates and checklists to help you manage your key business admin tasks with ease.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-46d869e5-f36b-4b06-8a2c-0ee65a10435b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download the toolkit<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1261586981-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1261586981-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-costs\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness costs\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tCash flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/hr-payroll-benefits\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tHR, payroll and benefits\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/need-to-know\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tNeed to know\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-1043 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-alternative-finance tag-cash-flow tag-crowdfunding business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"999\" height=\"666\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/0J9A9593.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/0J9A9593-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/0J9A9593-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/0J9A9593.jpg 999w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-05T13:25:08+01:00\">5 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/a-business-guide-to-borrowing-money\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tA business owner&#8217;s guide to borrowing money\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tIt&#8217;s a necessary requirement for most businesses but the good news is that it needn&#8217;t be painful of even expensive. Here&#8217;s how to borrow in the best way for your business growth and success.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-15795 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountant-accounting tag-accountant-automation tag-brexit-business tag-business-finances business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-account-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg\" class=\"card-post__image\" alt=\"man in office\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" 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class=\"entry-date published\" datetime=\"2026-05-27T12:11:12+01:00\">27 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tA guide to SaaS revenue recognition with examples\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-30262 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-cash-flow tag-payments business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/purchase-requisition-vs-purchase-order\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-684x384.jpg\" class=\"card-post__image\" alt=\"Running a business\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" 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2024.<\/p>\n","protected":false},"author":1233,"featured_media":19489,"menu_order":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[6,10,9],"tags":[197,135,24,234,206],"business_type":[4,3,115],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[214],"coauthors":[372],"class_list":["post-19485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","category-people-leadership","category-strategy-legal-operations","tag-business-costs","tag-business-finances","tag-cash-flow","tag-hr-payroll-benefits","tag-need-to-know","business_type-small-business","business_type-medium-sized-business","business_type-accountants"],"sage_meta":{"region":"en-gb","author_name":"Esther Cooke","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/09\/Woman-working-in-cupcake-bakery.jpg","imagine_tags":{"214":"Accountant payroll"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/19485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/1233"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=19485"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/19485\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/19489"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=19485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=19485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=19485"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=19485"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=19485"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=19485"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=19485"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=19485"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=19485"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=19485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}