Business Cloud News
Iris Software Group says its acquisition of KashFlow will help strengthen its offering to SMEs

Iris  says its acquisition of KashFlow will help strengthen its position among SMEs and accountancy firms

The Iris Software Group announced today that it has acquired Kashflow, a provider of cloud-based bookkeeping software in a bid to strengthen its position in the global SME and accountancy market.

Neither KashFlow nor Iris have revealed the terms of the acquisition.

KashFlow was founded in 2006 with the aim of simplifying accounting and bookkeeping software, particularly for small businesses. Its software as a service offering provides invoicing and bookkeeping functionality and automation and integrates with a number of other cloud services including Dropbox and MailChimp.

The company won a number of awards since its founding and rumours began circulating that the company would be acquired in 2011 by one of its competitors, which includes traditional accounting software providers like Sage (now shifting to the cloud) in addition to a growing chorus of native cloud-service providers catering to this market, like Xero and Liquid Accounts.

“Iris clearly understand the importance of the cloud and the benefits it can bring to small business owners. Being part of the wider IRIS Software Group not only gives us direct access to a significant section of the UK accountancy and SME sector but it also makes us part of a wider suite of cloud offerings,” said Duane Jackson, founder and chief executive officer of KashFlow.

“This will help us deliver on our vision of further automating and simplifying the process of running a small business, enabling entrepreneurs to cut through the red tape and get on with doing what they do best: winning clients and growing their businesses. Around half of all UK accountancy firms already use IRIS to run their business, now they will be able to collaborate with their clients through tight integration with the KashFlow cloud bookkeeping system,” he added.

Iris, which offers a number of on-premise and cloud-based bookkeeping and payroll solutions says the move will help strengthen its position in the growing SME space, where Phill Robinson, chief executive officer of IRIS Software Group says there is growing demand for cloud-based bookkeeping services. “There is so much we can achieve together for the millions of SMEs who wrestle every day with their payroll, bookkeeping and accountancy needs. KashFlow’s superb cloud services are the perfect fit with our existing suite of products and I am confident that this will enable IRIS to strengthen its leading position in cloud software for UK SMEs and accountancy firms,” Robinson said.

Cloud seems to be reaching critical mass among both SMEs and accountancy firms in the UK. A Cloud Industry Forum survey of 250 UK SME IT decision makers suggests over two thirds of small businesses are using cloud-based services, while a study recently commissioned by Xero (one of KashFlow’s competitors) reveals 55 per cent of UK accountancy firms are either using cloud-based accountancy software or plan to within the next six to twelve months.