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Mimo targets accounting software ‘rebundling’


Swedish fintech Mimo aims to reduce the number of tools small businesses and their advisers use to manage their money via its connected cash management platform.

12th Jun 2024
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Mimo, short for ‘Money in, money out’, was founded in January 2023 by three friends who’d first met a decade previously at Swedish fintech success story iZettle (now Zettle after its acquisition by PayPal) – CEO Henrik Grim, Gernandt Segerby and Andreas Meisingseth.

In April 2024 after testing with accountants and businesses, Mimo publicly launched in the UK and announced a £15.5m raise from fintech investors.

Currently, Mimo is an accounts payable solution with a built-in credit facility, but the developer hopes to expand this in Autumn 2024 with the addition of accounts receivable functionality.

What does Mimo do?

Mimo’s payments platform allows users to pay suppliers, schedule payments, automatically reconcile payments with accounting software (currently Xero and QuickBooks Online), and set up roles and approval flows across management, finance teams, accountants or bookkeepers. 

To run payroll, users can export details from payroll software in any file format, upload and set the pay date.

Users can also pay international suppliers and employees from the platform, converting from GBP at the point of payment, or hold funds in Mimo’s multi-currency accounts. The platform supports payments from three types of funds: wallet, open banking connections or credit. 

Embedded into the payments tool is the developer’s ‘Mimo Flex’ facility, which offers users credit to pay suppliers up to 60 days later than the invoice’s payment date. The fee structure is roughly 2% of the invoice for 30 days or 4% for 60 days but the company takes a ‘risk-based’ approach to the exact cost based on the size of the company, the amount and finance data.

The Mimo Flex platform also offers the ability to see all incoming and outgoing cashflows in one place.

Accounting firm users of the product have access to a multi-company overview, allowing them to work across their client base and invite new users to the platform.

Future plans

In Autumn 2024, Mimo plans to enter the accounts receivable game, offering customers branded payment portals for customers showing current and historical invoices with pre-populated payment methods. 

Mimo told AccountingWEB it plans to offer automatic invoice payment reminders and direct debit options, with flexible payment terms for customers available via Mimo Flex. 

Users will be able to see statuses across all receivables in one view, access instant payouts on outstanding invoices against a fixed fee, and use insights like historical payment behaviour to inform decisions on customer credit limits and payment terms. 

The developer also hopes to add OCR invoice data extraction and more partnerships with accounting platforms and data management tools such as Dext, AutoEntry by Sage and Datamolino.

Founding Mimo

“Mimo is essentially the brainchild of all of us having worked in small business payments and small business finance throughout our careers,” co-founder Henrik Grim told AccountingWEB. “But the trigger for the actual product was my wife sitting on the couch at home running the payments and bookkeeping for her dad's construction business. 

“They’re a small business that only gets paid by the client after the project is done and are constantly struggling on cashflow,” Grim continued. “She was running both the accounts payable side, getting 50 supplier invoices a month from local and international suppliers, and keeping track of the bookkeeping, constantly turning every penny from a cashflow perspective. From an admin point of view, it was such a difficult fragmented experience”.

Cut out complexity, cut down costs

From this experience, Mimo’s co-founders began to refine the firm’s proposition, targeting two main problems experienced by small businesses and their accountants.

“The first is that there's been an explosion of apps across the accounts receivable, accounts payable, cashflow management space,” said Grim. “This leads to data getting very fragmented. Even if your accounting platform should act as a general ledger, it’s hard to understand how your business is doing.

“For accountants, managing all these different apps gets really complex because you need to log in and out of them, train your team and constantly onboard staff and clients. This detracts from the promised opportunity of efficiency these apps come with.”

The second problem Mimo is looking to address is the rising cost of software. Recent research from AccountingWEB Intelligence into the cost of technology … has found that accountants have seen their software costs rise from 4% of revenue to 8% in the last ten years, fuelling frustration in some quarters that productivity gains have not kept pace. According to Grim, this is likely to change soon.

“With the maturing of fintech infrastructure, we’re able to build broader, better solutions faster than ever before,” he said. “With this, we can reduce the number of tools needed to manage money-in, money-out and save firms money as well as time.

“While the vast majority of our customers don’t use our credit or international payment facilities, by embedding them we can monetise this and make our software cheaper as well."

Replies (4)

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By jan kool
12th Jun 2024 12:25

"Mimo’s payments platform allows users to pay suppliers, schedule payments, automatically reconcile payments with accounting software (currently Xero and QuickBooks Online)"

The Xero API does not provide functionality to reconcile to the bank account automatically.

It does allow the posting of sales and purchase invoices and any associated receipts or payments to the ledgers. Reconciliation to the bank account is then done using Xero itself.

Thanks (2)
Replying to jan kool:
By Alexander Segerby
12th Jun 2024 16:11

Hi Jan, thank you for your comment. I'm Alex, co-founder and Chief Product Officer at Mimo.

We have a two-way integration to Xero, meaning we update bills as paid and send corresponding bank feeds with the transactions (matching bill payments with bank feeds for reconciliation).

You are correct in that no external applications can fully automate the reconciliation process all the way as it’s not allowed by Xero, so we automate to the full extent made possible by Xero.

Does that help clarify how Mimo works?


PS. feel free to reach out on [email protected] or to me directly on [email protected] should you have any other questions or feedback on our product!

Thanks (1)
Replying to Alexander Segerby:
By jan kool
12th Jun 2024 18:01

Hi Alex
I looked at the API and saw it is possible to flag transactions as reconciled when posting, but the matching to the bank statement is through Xero.

It looks like Xero has no plans to allow reconciliation to bank statement lines through the API.

Best of luck with your product

Thanks (0)
By FactChecker
12th Jun 2024 18:59

I know nothing about 'payment platforms' ... but "To run payroll, users can export details from payroll software in any file format, upload and set the pay date"?

That's not 'running Payroll' ... it's paying the 'net pay' calculated by Payroll, which any Payroll software that I've run in the last 30 years or so always did without problem.
ALL the required data (EE current bank account, any split for multiple accounts, the contractual pay date, etc) all are held and managed within Payroll ... and some of that, like pay date, will have been notified via RTI to HMRC so must not be then changed by the payment processing!
Also, any 'export file' (or API nowadays) should delay transaction processing until approved (by the authorised person in Payroll or Finance).

FWIW there will often be other payee lists (not just employees, but court orders, union subscriptions and many more not forgetting HMRC) resulting from processing the Payroll ... some of which need not just payment but to be accompanied by a report/list that contains a specific payment ref per related employee.

In short, is this just a 'nice-to-have' that might save a few seconds for a very small employer - or is it a partial solution for more grown-up payrolls (with the danger that actions are omitted)?

Thanks (2)