CashCalc founder looks to larger advisers for growth

CashCalc founder looks to larger advisers for growth

CashCalc’s founder, Ray Adams, said the company's client base was “about to change”, as it looked to work with more large advice firms.

The software has traditionally been most popular amongst one- and two-person outfits but is gearing up for a wave of  consolidation among larger advice firms.

Bought in May 2021 by FE, CashCalc - which made a profit in its ninth month of existence - was serving a majority (81 per cent) of small advice firms at the time of its sale.

“Predominantly until now, CashCalc has been one- and two-man bands, or one woman- and two-woman bands,” Adams told FTAdviser.

“That’s because a small business owner can make the decision there and then. He or she can look at a software and think ‘actually I like this, I’ll get it’.

“But that figure [81 per cent] is probably about to change, because some of the biggest firms are starting to say ‘we need to have consistency across our organisation, so let’s take it to every adviser and not just pockets’.”

The software provider, famous for its cashflow modeller tool, signed a deal with Sandringham at the end of last year, which has 180 IFA partners and advises on assets of more than £2.5bn for 10,000 clients.

The Huddersfield-based firm was already using CashCalc throughout pockets of the business, but made the decision in December to run the software for every single adviser in the organisation.

“That’s quite a big customer, because there’s close to 200 advisers,” Adams explained, before citing Fairstone as another of the firm’s larger customers.

Before its acquisition by FE, CashCalc had eight developers but now its has 140 at its disposal, which gave Adams the confidence its could make the switch to scale.

Though Adams did note it could now take a month rather than an afternoon to make a development change.

But he was quick to explain this shift in timescales was a product of the number of end customers it has today, compared to when it started.

“If you've got 10 users, your quick changes affect those ten users. But as you grow, you should get a new level of responsibility. We have thousands of users who use CashCalc every day now. So naturally, we can't be quite so agile and make changes suddenly.

“Joining FE FundInfo, which already had thousands of users, has already given me and the team lots of experience about how to manage improvements and changes.

“They’ve got lots of process and systems in place, so as we get bigger with more users, we can keep pace with the changing needs of security and access. It’s all behind-the-scenes, boring stuff but it’s really important.”

CashCalc now accepts around 2,000 direct debits, some paid by one registered user all the way up to some paid by firms on behalf of 200 or 300 registered users.