UK startup Countingup has raised €750,000 led by Frontline Ventures along with private investors to support sole traders.
Uniting business banking and accounting into a single product, Countingup aims to use the funding to build an accounting bank to serve 1m entrepreneurs.
It represents a different approach to marketplace data exchange services, often utilised by major banks to connect consumers with third party accounting software.
The business current account, aimed at sole traders and freelancers, comes with a UK sort code and account number, along with a contactless Mastercard.
The smartphone app, where small businesses can sign up for an account in under five minutes, will also hold automated accounting software. Using machine learning to generate bookkeeping, it will submit VAT returns, generate a profit and loss report and create invoices.
After April 2019, new HRMC legislation will mean that businesses with a turnover above the VAT threshold of £85,000 will have to submit their quarterly filings for VAT, income tax and corporation tax digitally.
Countingup follows in the footsteps of digital giants Revolut and Tide, which launched support for SME business banking earlier this year. Tide is now capturing around 7 per cent of all new UK business current accounts, and also boasts its own in-app accounting functions.
Another significant competitor is Curve, which recently partnered with Xero to automate the filing of business expenses. The London-based fintech raised $10m in a series A investment round in July 2017, and has more than 75,000 sign-ups to date.
Tim Fouracre, the founder and CEO of Countingup, said: “Accounting and banking have become more integrated in recent years. Think of us as Revolut and Xero in one single product. This will help drive productivity for the 4.2m businesses in the UK who have one employee or less.”
From today, you can download the Countingup app on Google Play and the App Store to join the waitlist. The banking account will be launched later this year, with accounting functionality to follow in early 2018.
