Mayday adds bank reconciliation and loan balance functionsby
Multi-entity software Mayday has launched two new products aiming to demonstrate that companies can grow in size and complexity using their existing cloud accounting systems.
Building on their first product, Recharger, both Mayday’s two new offerings target the vendor’s stated aim of automating large swathes of the month-end close process and offer the ability to build an enterprise-level system with small business cloud accounting tools.
The first new product, BRAG, (short for “bank reconciliation across the group”) enables users with multiple related entities to match transactions to invoices and bills posted to other entities from within Xero’s bank reconciliation screen. This is done via a browser extension that sits in the user’s Xero bank rec interface once the extension has been installed.
By searching across the whole group for bills and invoices that could match a transaction, BRAG allows users to match payments and revenue to bills and invoices as they normally would in a single-entity business, with the relevant intercompany accounts debited and credited.
According to Mayday CEO David Tuck, this cuts down the need to search through multiple entities for bills that match payments from other entities, saving time and eliminating the worry that a bill could be paid twice.
Mayday’s second new product, Balancer, monitors a group’s intercompany loan accounts to ensure equal amounts are displayed in all entities and the accounts don’t fall out of balance. Balancer highlights any discrepancies, allowing the user to view how the discrepancy varies line by line and quickly spot what needs to be corrected.
Balancer’s paid-for version offers the ability to one-click post any foreign exchange adjustments back to Xero. Users can also set the interest rate that should apply to the loan and Balancer will auto-calculate the adjustment for the users to one-click post.
“The pain of having to rebalance intercompany loan accounts usually happens at the worst time, year end or during financing or acquisition,” Tuck told AccountingWEB. “This offers a safety net to make sure they don’t fall out of balance.”
Mayday is currently only available for Xero users, but the Mayday team reiterated to AccountingWEB that they will be “fully product agnostic” as soon as possible.
In terms of pricing, BRAG is available as part of Mayday’s Lite or Full packages. Balancer’s Transaction Matching functionality is available for free, with the one-click adjustment tools available on the Lite or Full packages. For full details visit Mayday’s pricing page.
Dawn of the Pre-RP tool?
Launched in April 2022, Mayday’s first product was Recharger, a tool that automates intercompany recharges – costs and revenues recharged between connected entities of the same business.
Co-founded by Tuck, who previously founded and ran cloud credit control tool Chaser, Mayday targets the increasing number of businesses that have matured using small business (SMB) cloud accounting solutions.
While growing organisations can stretch the limits of SMB cloud accounting tools, in the past they may have been pushed to adopt sophisticated, often expensive enterprise resource planning (ERP) systems earlier than they needed them.
With the number of “cloud accounting native” business users growing, Tuck believes that there is a huge opportunity for vendors to provide such users with tools to stay on their cloud accounting tool of choice in what he calls the “Pre-RP” category.
“We’re 15 years into SMB cloud accounting and the number of more sophisticated businesses that want to do finance properly with cloud software like Xero or QBO, without having to pay huge amounts more by moving to ‘grown-up’ products, is growing,” Tuck added.