What if managing your business could be as simple as connecting your bank account and letting AI handle the rest?
Welcome to another edition of our exclusive interview series on AllAboutAI.com. Today, we’re excited to share insights from Pontus Abrahamsson, Co-Founder of Midday—a groundbreaking platform for freelancers and small businesses, offering a streamlined solution that simplifies financial management and day-to-day operations.
Drawing from his rich background in consulting and a passion for efficiency, Pontus created Midday to transform how entrepreneurs manage their finances and operations. Join us as Pontus shares his insights on how Midday is making financial management hassle-free, and learn how this innovative platform is setting new standards for simplicity and efficiency in business finance.
https://youtu.be/Fb2Tf2E4Gvw
Revolutionizing Financial Management with Midday
Midday is more than just a financial tool; it’s a comprehensive platform designed to save time, reduce stress, and boost productivity by automating essential business processes. In this exclusive interview, Pontus discusses his journey from consulting to entrepreneurship and how his challenges inspired the development of this innovative technology.
Midday is designed to be the ultimate assistant for freelancers and small business owners, bridging the gap between complex bookkeeping systems and the practical needs of entrepreneurs.
So, Pontus, what inspired you to develop Midday?
Pontus: Thanks for having me. The idea for Midday came from my own experience of running my business as a consultant for eight years. I struggled with accounting and staying on top of my finances. When my invoicing system essentially told me I was too small for their services, I realized I needed something leaner, smarter, and more tailored for small business owners like myself.
In Stockholm, Sweden, as in many countries, the available bookkeeping software is often complex and designed for accountants, which can be overwhelming for small business owners. So, out of frustration, my best friend Victor and I, who was also running his own business, decided to create Midday. We wanted to automate as much as possible, and that’s where AI came in. It made perfect sense to leverage AI to simplify these tasks, given how easily automation can be achieved with today’s technologies.
How does Midday use AI for automation?
Pontus: Midday leverages AI to automate many of the tedious tasks that small business owners typically struggle with. For example, once you connect your bank account, our system automatically pulls in your financial data and handles tasks like invoice reconciliation, tracking expenses, and providing insights into your spending patterns.
AI enables us to automate these processes seamlessly, so you can focus on running your business rather than getting bogged down in administrative work. This automation is what makes Midday so effective in helping entrepreneurs save time and reduce stress.
Did you conduct any market research before building Midday?
Pontus: Absolutely. We wanted to create a global solution, and during our research, we noticed that most countries have their own bookkeeping software, but none offered a simple, all-in-one system where you could just connect your bank account and get started immediately. Most existing tools require additional steps, like getting a card or involving an accountant, which complicates things for small business owners who just need to focus on running their businesses and making money.
We couldn’t find a system that provided all the necessary information—such as getting paid, reconciling transactions, and managing invoices—under one roof. Existing tools tend to excel at specific tasks, but we wanted to cover the full spectrum. It was a risk, but we aimed to create an all-in-one tool tailored for the smallest businesses. In the end, the challenge of building something better ourselves was incredibly rewarding, and that’s what drives us.
What is the philosophy behind Midday’s logo and name?
Pontus: The name “Midday” actually came from a phrase I often used with my accountant. I would tell her, “You’ll get it before midday,” whenever I needed to send my invoices and transactions. Over time, it just felt natural to name our platform “Midday,” symbolizing the idea of getting things done efficiently and on time. The name reflects our focus on making business management simple and timely for small business owners.
What is the main objective of Midday?
Pontus: The main objective of Midday is to streamline business management by bringing everything you need into one system. From tracking your burn rate to managing expenses, Midday simplifies the entire process so you don’t have to jump between different tools. Our goal is to provide small business owners with a comprehensive, all-in-one platform that keeps everything running smoothly and efficiently.
How does Midday differ from traditional platforms?
Pontus: Midday isn’t a full-fledged bookkeeping software, and that’s intentional. Unlike traditional platforms, we don’t have to deal with complex domestic tax rules, which allows us to focus on what matters—providing actionable insights through AI. This flexibility lets us experiment, adapt new technologies quickly, and deliver unique features like voice-activated assistance.
Our platform acts as a thin layer that integrates with your existing systems, enabling us to iterate fast and implement innovative features that our customers love. For example, you can simply ask, “How much did I spend on software last month?” and get an instant response. This ability to move quickly and experiment is what sets Midday apart from traditional, more rigid platforms.
Can you provide an example of Midday boosting productivity over conventional tools?
Pontus: With Midday, you can connect your bank accounts through providers like GoCardless in Europe, Teller and Plaid in the US, and soon in Australia and New Zealand. We focus on automating the processing of transactions—capturing details like date, amount, name, and currency—all while ensuring your data is secure and locally stored.
This automation provides everything you need to manage your business more effectively, from understanding your spending patterns to tracking your burn rate and runway. Before Midday, I had to constantly call my accountant to check on my business’s financial health because I was too busy coding and managing invoices. Now, Midday handles all of that, saving time and boosting productivity significantly.
What sets Midday apart from competitors?
Pontus: Midday takes a unique approach by integrating with existing accounting software like Fortnox, QuickBooks, and Xero, rather than trying to replace them. These systems are essential for closing your books, and we recognize how difficult it is to build a global product that handles complex tax rules. As a self-funded, two-person team, we focus on adding value by working closely with our users to meet their needs.
We position Midday as a complementary tool that enhances, rather than competes with, existing platforms. While we don’t directly handle tax compliance, we provide the flexibility and features users need to manage their finances efficiently. If there’s demand, we may expand to include more accountant-focused features, but for now, we collaborate with these systems to offer the best of both worlds.
Who is Midday best for?
Pontus: Midday is best suited for freelancers and micro–businesses, especially small teams of 2 to 5 people. Initially, we targeted SMBs, but we realized through discussions with VCs that most financial software focuses on larger businesses and enterprises. We discovered that these smaller businesses often lack proper tools and end up managing invoices with PDFs or tracking projects in spreadsheets. Midday fills this gap, offering a streamlined solution that grows with them, while we continue to focus on addressing the unique needs of these small teams.
What are the key features of Midday?
Pontus: Midday offers a range of features designed to streamline business management. You can track project hours, send invoices that are automatically matched with transactions, and export everything to your accountant to close the books. We also provide an inbox feature for scanning and matching invoices with transactions and a vault to securely store all your company files and agreements. Our platform is designed to save you time and money by simplifying these tasks, giving you more hours in the day to focus on growing your business.
How does Midday ensure the accuracy and relevance of AI-generated insights?
Pontus: We ensure accuracy by handling all calculations in-house rather than relying on external models for critical tasks. While we use OpenAI as a large language model for generating insights, we avoid potential inaccuracies by performing all data processing and calculations internally. This approach prevents any “hallucinations” from the AI and ensures that the insights are both accurate and relevant. Additionally, we’re working on allowing users to install Midday on their own computers, enabling them to download and run their own AI models locally. This not only enhances security but also improves speed and allows for more customized, accurate insights directly on your device.
Does Midday offer real-time data analytics?
Pontus: Yes. In the banking world, “real-time” typically means updates every three hours. Midday receives new transactions every three hours, allowing you to access up-to-date information, calculate your runway, track spending by category, and more. While there’s a slight delay, this is considered real-time in the context of banking.
How does Midday ensure data security?
Pontus: Data security is a top priority at Midday. While online systems always carry some risk, we follow best practices, including two-factor authentication (2FA) and encryption at rest. We’re also exploring encryption at the row level for sensitive data.
As an open-source platform, we benefit from the scrutiny of a broad community of developers who contribute to enhancing our security. We’re fully transparent about our processes, metrics, and values, which helps us build trust with our users. While we may not have the resources of large, capital-heavy companies, our focus on transparency and collaboration with our customers ensures that we’re continually improving security and building a reliable platform for freelancers and small businesses.
What types of integrations does Midday support?
Pontus: Midday primarily relies on transactional data and supports integrations in 34 countries through various banking providers, with plans to expand to Australia soon. We focus on key data points for transactions, allowing us to deliver value globally. Being an open-source platform, we welcome community contributions for integrations. Users can vote for or request specific integrations, and the community can help build them.
Currently, we support exports for CSV and Zip files and plan to add integrations with platforms like Xero, Fort Knox in Sweden, and QuickBooks. We’re excited to see how many integrations will emerge as our app framework evolves, allowing us to scale and meet diverse needs.
Can Midday support multi-currency transactions?
Pontus: Yes, Midday supports multi-currency transactions. Whether you’re dealing with different currencies for invoicing or expenses, our platform automatically tracks and converts them, ensuring accurate financial management across various currencies.
Any success stories of Midday improving business management?
Pontus: We’re currently gathering official customer stories, but we’ve already seen great feedback. We engage directly with our users, listening to what they like and don’t like, and we adjust Midday based on their needs. This approach has turned many potential customers into core users because they see that we genuinely listen and build the platform for them.
One of the most appreciated features is the ability to easily track burn rate, runway, and spending, which has been a game-changer for our users. When they upload and reconcile invoices with transactions, they realize just how much time and money Midday saves them. We’re just getting started, and as we refine our features based on user feedback, we’re excited to continue enhancing the platform to meet their needs.
Where do you see the role of AI in business management in 3-5 years?
Pontus: AI is here to stay, and its role in business management will continue to grow. Our goal with Midday is to have AI work for you, handling tasks so effectively that you don’t need to spend much time using the platform. Instead, you can focus on what you love to do. We’re closely watching developments and experimenting with new ideas, aiming to implement features that could significantly enhance productivity. We’ll quickly identify what works and either refine it or move on, ensuring that Midday remains a valuable tool in the evolving landscape of business management.
Can artificial intelligence replace human intelligence?
Pontus: AI can go very far, but it will always need some level of human input. I’m more interested in seeing how far we can push AI to work for us, not replace us. The goal is for AI to enhance our capabilities, not to replace human intelligence entirely.
What advice would you give to aspiring entrepreneurs?
Pontus: Be curious and start taking action. For me, what made the difference was talking about my ideas, whether in conversations like this or on platforms like X (Twitter) and LinkedIn. Sharing your journey and seeing how people react gives you the fuel to push forward. Find something you love to do—especially in areas like AI, where there’s so much excitement—and use that passion to create something valuable.
Anything for users considering Midday to manage their business transactions.
Pontus: If you’re excited about Midday but unsure about what it can do for you, reach out to us—we’re here to listen. Midday is fully open-source, so if you’re tech-savvy, especially as a freelancer, feel free to explore our repository and check out the code. We encourage you to dive in and see how you can make the most of it.
Key Takeaways
In this interview, Pontus Abrahamsson, Co-Founder of Midday, discusses how the platform simplifies financial management for freelancers and small businesses. With AI-driven automation, multi-currency support, and seamless integration with existing accounting tools, Midday is designed to save time and reduce stress.
Pontus also highlights the importance of user feedback in refining Midday’s features, ensuring it meets the unique needs of small teams. As an open-source platform, Midday invites users to explore and contribute to its development.
Ready to streamline your business management? Explore Midday today and see how it can work for you!
