FreeAgent strikes record deal for cloud accountancy service

FreeAgent co-founder and chief executive Ed Molyneux. Picture: Helen Pugh
FreeAgent co-founder and chief executive Ed Molyneux. Picture: Helen Pugh
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Edinburgh-based FreeAgent is accelerating its reach into micro-business book-keeping following its biggest-ever partnership with a national accounting firm.

The deal with self-employed accountancy network Danbro is believed to be the largest involving any UK cloud accounting provider. Up to 4,000 Danbro clients will be given the opportunity to use FreeAgent as their preferred cloud accounting system.

The agreement follows the announcement of a similar tie-up in February with London-based K&B Accountancy, which introduced 1,200 freelancers and contractors to the FreeAgent platform. Danbro’s network is double that of JSA when it signed what was previously FreeAgent’s biggest-ever partnership in September 2014.

READ MORE: FreeAgent eyes possible float after key partner deal

FreeAgent allows the self-employed and small business owners to manage their expenses, invoicing, banking and tax forecasting, which frees up their accountants to provide more in-depth business advice. About one-third of the Scottish firm’s subscribers are through accountancy practices, and this has become the fastest-growing part of the business during the past year.

John Thorburn, director of accountancy services at Danbro, said clients will be able to manage their money “on the go” with a number of tools and applications available on FreeAgent.

“We have big growth ambitions and a reputation for using the latest technology to help our clients work more effectively and save money,” Thorburn said. “While our clients will see no changes to the service they receive, this deal with FreeAgent will allow us to do even more for them and ensure they can concentrate on making a success of their business.”

FreeAgent chief executive and co-founder Ed Molyneux, who is looking to raise additional funding for the firm later this year, said the deal with Danbro highlights “our mutual commitment to supporting micro-businesses”.

“We’re thrilled to announce this partnership with Danbro, which is not only our biggest deal, but also the largest of its kind ever in the UK cloud accounting sector,” he said.

Founded in 2007 by former RAF pilot Molyneux and his partners, Olly Headey and Roan Lavery, FreeAgent has raised £7 million of funding to date, including £6m from a network of angel investors based in London, Germany and the US. The remainder was generated in a crowdfunding push that closed last year.