FreeAgent is the latest on the list of popular accounting system we integrate with. Some years ago, I had a meeting with a senior figure from a large, accounting software firm. He said he thought we were making a mistake by taking what he called the Swiss position.
The Swiss position, in this context, meant being neutral of accounting software vendors. The disadvantage of neutrality comes from knowing that small business owners are more likely to buy accounting and payroll from the same company. This gives a marketing advantage to any company that sells both systems under the same brand. In marketing terms, this is a strong point against neutrality but, as I think most small business owners will understand, there is also a lot to be said for being a free agent.
Many small business owners view payroll as an add-on to their accounting system. This is partly because accounting software vendors have sold it that way, but there are other reasons too. Some people prefer to deal with one supplier instead of two and some are concerned about the data that is posted between the two systems. The relevant accounting transaction is actually quite simple and many accounting systems let you set up a template to make it easier to enter. Added to that, payroll systems like ours have ways to transfer data directly into the common accounting systems.
We can now transfer data directly to Xero, QuickBooks Online, KashFlow, QuickFile, Business Accountz and FreeAgent.