Witnesses: Japanese Cloud-Based Accounting Startup 300% Surge: Almost all fields of employment have improved due to the usage and integration of technology. Accounting is no different, with resources that are cloud-based and AI-enabled making accounting much simpler.
The usage of accounting software facilitates quicker processing of reports and audits in addition to lowering human error. As a result, we are seeing such resources become more and more popular globally. Freee, a Japanese cloud-based accounting firm, has experienced a 300% increase in demand. Here are some things you should know about Freee, the growing popularity of cloud accounting, and how KGRN can assist you.
Cloud-Based Accounting -Free Shoots Up By 300%
Daisuke Sasaki, CEO of cloud-based accounting startup Freee, has seen his company’s valuation grow to an unprecedented $3.7 billion. While they are yet to turn profitable, he knows that this news is worth celebrating, and says that the valuation does not put excessive pressure on him. Since going public on the Stock Exchange in Tokyo last December, Freee KK’s shares have almost quadrupled in recent weeks.
The rise in demand for cloud-based accounting services and the advent of the Coronavirus is pushing prices up. As a result of the global pandemic, remote working has gone up exponentially, leading to the need for such cloud services. As a result, Freee’s stocks rose by an additional 1.3% on Monday to a new all-time high.
The Future Is Here-Cloud-Based AccountingÂ
Sasaki added that he had not established a concrete deadline for the company to become profitable. The CEO explained that because his company relies on a subscription model, expanding their brand and interacting with as many customers as possible were priorities.
One of the several tech-related stocks that have experienced huge increases as a result of the pandemic is the Japanese firm. Businesses are having to rely on increasingly remote services as more individuals work from the convenience of their homes. There has been an increase in cloud-based accounting organisations all around the world.
For instance, Intuit Inc., a provider of accounting software, posted earnings that exceeded previous projections. The reason for all these increases is that more and more small businesses are utilising their cloud-based services.
Looking Ahead
As per a report by Daiwa Securities co, Freee has the best shares within the Japanese Cloud-Based Accounting software markets. Their main competitors include Money Forward Inc within this space. However, Freee has been able to grow their subscriptions substantially over the last five years at a whopping 50% rate.
They currently have over 220,000 users with sales surging by 53% by June 30th. Their CEO has made it clear numerous times that the company values acquiring new users over short-term profitability.
He stated that out of Japan’s 6-million-strong small and medium enterprise industry, around 15% rely on cloud accounting. Free aims to become a dominant player within this space and capture more market share.
However, experts differ with regards to their opinion on Freee, with several of them linking this surge in users to the COVID-19. Meanwhile, Sasaki views this as an opportunity to accelerate their efforts regarding the digitalization of their processes and tasks.
He believes that the company is only getting started and that better things are right around the corner. Founded in 2012, the company began its journey with a Series A funding round a year later, making it one of the older Japanese startups.
The company now offers both cloud-based accounting and HR services and employs over 5,000 certified accountants and advisors. As we can see quite clearly, digital accounting will be a vital part of every successful business in the future. So, what are you waiting for?
How Can KGRN Help?
One of the most renowned Accounting and Audit firms in the UAE is KGRN Chartered Accountants. Our team of specialists and accountants is equipped with the necessary knowledge and skills to advise you on every aspect of operating a business in the United Arab Emirates. As a result, our professionals will make sure that your business maintains compliance, that all necessary reports are produced, and that all of your records are flawlessly audited. Join forces with us today to usher in a new era!
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