When non-financial companies and brands wish to offer financial services or products, such as lending, insurance, payments and banking, in order to improve the user experience for their clients, the companies typically refer to embedded finance.

Layer is heading toward an improved UI with accounting integrated. Its clients are companies that engage with small and medium-sized enterprises to provide accounting and bookkeeping services inside their own products, such as Toast or Square. The bigger organizations would allow small businesses to use Layer’s capabilities by integrating them into their platform.

Now, SMBs operating their businesses on Square or Toast platforms can use accounting and bookkeeping capabilities within the platforms. It’s in place of managing their company’s money with a different accounting program, such as QuickBooks.

In 2023, San Francisco-based Layer was founded by Justin Meretab, a former product leader on Square’s banking team and Daniel O’Neel, a former Wealthfront engineering executive. The objective was to develop a set of APIs that would enable platform users to provide Layer data from small company clients. Layer then provides connections to external bank accounts and credit card providers in order to collect data and move it into Layer’s ledger and account system. It enables small firms to compile all of their financial data into a comprehensive picture.

Layer is similar to Unit or Check; however, it is used for SMB accounting rather than payroll and banking. Indeed, the company’s goal is to totally replace outdated bookkeeping and accounting software like QuickBooks and Meretab.