MYOB announced today it had purchased online document collaboration startup, Dovetail, in a bid to enable more of its customers to move online and into the cloud.
According to the Australian-listed accounting software developer's accounts division general manager, Adam Ferguson, the acquisition will help facilitate online collaboration for accountants.
"The purchase of Dovetail is the next step in our vision of helping accountants move online and working closer together with their clients," said Ferguson. "This will enable MYOB to deliver an enhanced collaboration platform for accountants.
"The platform will extend the accountants’ capabilities beyond financial data management to deliver an integrated, collaborative experience through intuitive workflows, document management, work approvals and more.
"The outcome of this integrated workflow is improved accuracy, superior turnaround time, reduced data-entry, increased client participation, and increased revenue for the practice," he said.
Dovetail was founded in early 2012 by former MYOB product strategy manager, Rob Cameron, and is designed to enable accounting practices to deliver management accounting — a combination of bookkeeping and virtual CFO — to their clients.
According to MYOB, the purchase is a key move to strengthen MYOB's "connected accounting vision" by making cloud accounting easier for accountants and their clients.
"Together, MYOB and Dovetail have a distinct competitive advantage in delivering our connected accounting vision to bring more accountants online," said Ferguson.
According to an MYOB spokesperson, the purchase is one piece of the puzzle in MYOB's cloud accounting strategy, much of which revolves around its Cloud Partner Program, allowing accounting firms to move their MYOB Accountants Enterprise and Accounting Office practice solutions to the cloud via accredited Australian IT and cloud hosting providers.
"MYOB's focus has been on bringing accountants and clients closer together with the vision of the common ledger, which enables real-time collaboration on financial data in the cloud," said Ferguson.
MYOB's latest investment in its cloud-based services offering comes less than a month after New Zealand-based cloud accounting software company, Xero,with New York Stock Exchange-listed H&R Block, the world's largest consumer tax services provider.
According to Xero, the deal is expected to see it become the preferred small business online accounting solution in H&R Block’s Small Business suite of services in the US.