Driven by the ATO’s introduction of the Single Touch Payroll (STP) digital reporting requirement, Reckon says its cloud users have increased by 21% to 62,000 - with the number of new signups for the first half of 2019 more than double compared to signups in the second half of 2018.
“Reckon has delivered promising results in the first half of this year, and continues as a strong, stable and consistently profitable company. Our sound performance proves that we are focusing our energies correctly across the group,” said Sam Allert, Reckon CEO.
Alert said key areas of the business continue to perform well, with continued investment in development, sales and marketing initiatives for Reckon’s bolstered cloud, and mobile solutions.
Launched in late May 2019, Reckon says 19,000 users have adopted its new payroll app to ensure compliance with Single Touch Payroll – “a significant adoption in a short time period, healthy signup rates are expected to continue with innovative product developments for mobile in the pipeline”.
“There is no doubt that our introduction of a feature rich and affordable STP solution has been well-timed, given the government’s implementation of the new reporting requirement,’ said Allert.
“Offering customers a free and simple solution to STP compliance has demonstrated Reckon’s genuine commitment to helping people do better business and reducing the cost of compliance.”
Allert said that during the six months to 30 June, Reckon stabilised the Accountants Group following an aborted sale in 2018, and the focus for the division in the second half of 2019 and beyond is on re-establishing revenue growth.
And according to Reckon, despite a disruptive 2018, the Accountants Group’s APS retains its position as the “product of choice for 7 of the top 10 accounting firms”.
Reckon says the half year also saw it make significant progress on a cloud suite for APS.
The accounting software firm also reports that its Legal Group performed strongly in the period, with revenue up by 11% and EBITDA by 105% - “especially bearing in mind that the business is pivoting from an upfront sales model to a subscription model”.
“We have experienced an exciting six months and, with a clear strategy in place, are continuing solid execution across the group.
“With rapid advancements in our industry and an explosion of cloud technology, we have remained competitive with the development of new products to support our customers. Our strategy is proving effective as we respond to growing customer demands for smarter services.
“As we continue to refine our full cloud suite and targeted products, we will build upon our solid foundation to drive further growth,” Allert concluded.