One of the biggest payroll and human resources services company for small and midsize businesses, Paychex, is moving into the cloud accounting world with an equity investment in Kashoo, one of the 11 service providers I wrote about several months ago that are aiming to steal market share from Intuit.
The amount of the infusion wasn't disclosed, but it gives Paychex the right to place two executives on Vancouver-based Kashoo's board. An integrated solution many be in the offing, although no explicit details were released. For now, at least, you can expect Paychex to be talking up the Kashoo service, which has an especially strong mobile component.
In a statement, Paychex President and CEO Martin Mucci said: "Paychex has a history of great partnership with the CPA community, and now offering our clients and CPAs a simple-to-use and effective cloud accounting solution that will be integrated with the leader in payroll and human resource offerings will be very powerful."
Kashoo supports approximately 100,000 small businesses in more than 180 countries; its iPad application ranks in the Top 10 Business Apps in 90 different countries.
Paychex, based in Rochester, N.Y., offers everything from payroll administration to time and attendance applications.
The announcement follows a flurry of activity in the SMB cloud accounting space. In September, Intuit announced a major overhaul of QuickBooks Online, one that we see it open its application programming interfaces to other major SMB management applications. Another upstart, Xero, just raised $150 million in venture capital last week with the explicit aim of taking on Intuit in the U.S. market.