FreeAgent partners Equali on eCommerce reconciliation

FreeAgent has agreed an integration partnership with Equali aimed at eCommerce businesses selling through multiple online marketplaces.

The deal links FreeAgent's accounting software with Equali's reconciliation system for sellers using platforms including Shopify, Amazon, eBay and Etsy.

The integration is intended to give businesses a clearer view of sales, fees, refunds, taxes and marketplace payouts. Equali connects sales channels and payment providers to FreeAgent, reconciles order, payment and settlement data, and posts categorised entries into the accounting system.

This is expected to reduce reliance on manual spreadsheets and improve the accuracy of VAT and year-end reporting for businesses selling across several online channels.

The partnership emerged after the two companies were introduced through the Techstars and NatWest Accelerator Community Development Studio, a programme focused on building links between startups and larger organisations.

FreeAgent serves more than 250,000 UK businesses, including small businesses, landlords and accountancy practices. Acquired by NatWest Group in 2018, it operates independently within the banking group.

Growing segment

E-commerce has become a larger part of FreeAgent's customer base as smaller businesses expand their online sales across several marketplaces rather than relying on a single storefront.

Roan Lavery, Chief Executive Officer and Co-Founder of FreeAgent, said: "E-commerce is one of our fastest-growing customer segments, and thousands of small businesses and accountancy practices rely on FreeAgent to manage accounting, VAT and compliance. They are also increasingly trading across multiple online marketplaces like Shopify, Amazon, eBay and Etsy, which means there is strong demand for reliable multi-marketplace support.

"Through the NatWest and Techstars programme, we were delighted to be introduced to Equali and to see how their technology could help make life easier for these customers. Our partnership is a great opportunity to offer a seamless, scalable connection that gives sellers complete visibility of their eCommerce performance directly within FreeAgent, eliminating manual spreadsheets and improving VAT and year-end accuracy.

"We're looking forward to working with Equali to develop the partnership further, giving eCommerce customers and accountants the best possible solution to help them stay in control of their business finances."

The launch reflects a broader trend in accounting software towards deeper links with specialist commerce tools, as online sellers seek to consolidate fragmented transaction data from marketplaces, payment providers and tax records.

For merchants selling through several platforms, reconciliation can be difficult because each marketplace applies different fee structures, payout schedules and refund treatments. Bringing those records into a single accounting workflow can reduce administrative work for both business owners and their advisers.

Seller complexity

Equali said demand for this type of connection grows as businesses add more sales channels. Online sellers often need to track income and costs across marketplaces while keeping VAT records aligned with underlying transactions.

Burn said: "We're excited to partner with FreeAgent to make eCommerce accounting dramatically simpler for online sellers and the accountants and bookkeepers who support them.

"As businesses expand across multiple sales channels, managing financial data becomes increasingly complex. By combining Equali's connectivity and automation with FreeAgent's accounting platform, we're giving customers a seamless way to simplify data flows, improve financial accuracy and spend more time growing their businesses instead of reconciling spreadsheets."

The current integration covers major marketplaces including Shopify, Amazon, eBay and Etsy. Support for TikTok Shop and Facebook and Instagram sales channels is expected to be added as the partnership develops.

FreeAgent is best known in the UK for accounting software aimed at smaller businesses and the accountants who work with them. Its tools are used for bookkeeping, tax administration and compliance, and it has sought to broaden its relevance to businesses operating with increasingly varied digital sales models.

Equali focuses on reconciliation for online commerce, a niche that has grown as merchants use a wider mix of sales platforms and payment services. The partnership gives FreeAgent users a way to import and categorise marketplace data within their accounting records rather than handling those tasks manually.