Homegrown accounting platform Reckon will acquire Cashflow Manager for $8.75 million, and plans to port its 20,000 users to Reckon’s own cloud system in the years to come.
Reckon, which offers accounting and payroll software for small businesses, has agreed to purchase Cashflow Manager and bookkeeping platform Okke from Money Management Group.
Cashflow Manager, based in Adelaide, offers subscription software services catering to microbusinesses hiring their first staff through to established SMEs.
Its desktop software allows subscribers to record transactions and invoice customers, while assisting with single-touch payroll and business activity statement lodgments.
Bookkeeping software Okke, tailored to sole traders, counts 1000 users.
In a statement, Reckon CEO Sam Allert said the profitable Cashflow Manager business is an “ideal match for us to acquire and bring them into the Reckon Group”.
The acquisition will bring Cashflow Manager and Okke into a business focused on transitioning its users onto its cloud-based platform.
Reckon counted 109,000 customers for its cloud-based products as of June this year.
While pledging to support desktop users in the medium term, Allert flagged changes for Cashflow Manager customers in the years ahead.
“We will continue to support Cashflow Manager customers, as we support all our desktop users, as we work with them over the next few years on the perfect time to upgrade to our cloud-based solution,” he said.
The deal caps off a significant month for the small business accounting software sector, after incumbent competitor MYOB released its new Solo sole trader accounting app.
MYOB pursued its own acquisition of Reckon in 2017, pledging to commit $180 million to the buyout.
But the deal ultimately fell through, with MYOB citing longer-than-projected regulatory processes.
Reckon sold its accounting wing to The Access Group in 2022 in a deal valued at $100 million, while retaining its core SME accounting software business.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
