Patriot Software

What Patriot Software does

Patriot Software is a privately-held US SaaS company that provides cloud-based accounting and payroll software to American small businesses. Founded by Mike Kappel and now headquartered in Canton, Ohio, the company serves more than 75,000 SMB customers and has cumulatively processed over $19 billion in payroll through its platform. It operates a horizontal platform-plus-modules model with Patriot Payroll (Basic and Full Service tiers) and Patriot Accounting (Basic and Premium) as the core offerings, augmented by add-ons for time and attendance, HR, health benefits, 401(k), workers' compensation, bookkeeping services, and an HR Experts & Training service.

The platform is built on a 100% online, cloud-based architecture featuring a patented Dual-Ledger Accounting System that allows cash-to-accrual basis toggling, plus an AI-powered Smart Suggestion feature for accounting guidance. The product surface is extended through embedded integrations with Stripe for payments, Plaid for bank feeds, QuickBooks for data sync, Vestwell for 401(k), SimplyInsured for health benefits, ERGO NEXT for workers' comp, and Mineral for HR advisory. Mobile applications on iOS and Android, plus a free employee self-service portal (My Patriot), extend the platform to W-2 employees and 1099 contractors. The company is SOC 2 Type II compliant and operates with a distributed workforce across 30 states.

Patriot's business model is subscription-based with monthly billing and no long-term contracts; Basic Payroll starts at $17/month plus $4 per worker and Full Service Payroll at $37/month plus $5 per employee, with Accounting Basic at $20/month. The go-to-market motion is product-led growth via free trials and self-serve sign-up on the company website, supplemented by a partner/reseller program for accountants and bookkeepers, content marketing, SEO, and email nurture. The company is privately held and debt-free, having bootstrapped through private capital raises from hundreds of accredited high-net-worth investors after a 2016 decision to remain private rather than pursue an IPO; leadership transitioned in 2024 from founder Mike Kappel to Kyle Quinn Dreger.

Name

Patriot Software

Legal name

Patriot Software LLC

Website

https://patriotsoftware.com

Company type

Private

Founded year

1986

Operating status

Operating

Headcount range

101–250 employees

Short description

A privately-held US SaaS company providing cloud-based accounting and payroll software to American small businesses. Operates a platform-plus-modules model with patented dual-ledger accounting, serving over 75,000 SMB customers across the United States.

Ownership category

akta.pro rank

Product category

Small Business Accounting and Payroll Software

NAICS

Software Publishers (513210)

SIC

Services-Prepackaged Software (7372)

akta.pro primary industry

Payroll Software & Payroll-as-a-Service (SaaS) (BPACAIAB)

Keywords

• Payroll software
• Accounting software
• Small business finance
• HR management
• Tax filing services

Headquarters

HQ city

Canton

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Subscription Revenue - Payroll: Monthly subscription fees based on payroll services, with per-worker and per-employee charges. Includes Basic Payroll and Full Service tiers with different feature sets and pricing points.
2. Subscription Revenue - Accounting: Monthly subscription fees for accounting software with Basic tier including invoice and expense tracking, plus Full Service tier with additional features.
3. Add-on Services: Additional services including HR advisory, workers' compensation, health insurance, and 401(k) integrations that generate supplementary recurring revenue.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels3 records

Core offering

Patriot Software provides cloud-based SaaS accounting software and payroll software for American small businesses and their accountants. Its core products are Accounting (Basic and Premium) and Payroll (Basic and Full Service), available separately or together under one login, with modular add-ons for time tracking, HR, health benefits, 401(k), workers' compensation, and managed bookkeeping.

Product overview

Patriot Software offers a unified platform of integrated accounting and payroll products designed for American small businesses. The core offerings consist of Accounting Basic and Accounting Premium (online accounting software with invoicing, expense tracking, and financial reporting) paired with Basic Payroll and Full Service Payroll (tax calculations and filing services). These core products can be purchased separately or together under one login. The product suite is expanded through modular add-ons including Time & Attendance (Patriot Time), HR Software (Patriot HR), Employee Health Benefits, 401(k) Plans, and Workers' Compensation—all of which integrate directly with the payroll platform. Additional services include Bookkeeping Service, HR Experts & Training, Employee Self-service Portal (My Patriot), Direct Deposit Service, and Auto Payroll. The architecture follows a platform-plus-modules model where payroll serves as the foundational system with HR and time-tracking add-ons built on top, while accounting integrates seamlessly with payroll for unified financial management.

Differentiator

Problem solved

Functional benefit

Brands

• Patriot Payroll®: Online payroll software for small businesses with Basic and Full Service options
• Patriot Accounting™
• Patriot HR™
• Patriot Time®
• My Patriot®
• Patriot Suite®
• Patriot Platform®

Products and services

• Accounting Basic
• Accounting Premium
• Basic Payroll
• Full Service Payroll
• Time & Attendance (Patriot Time)
• HR Software (Patriot HR)
• Employee Health Benefits
• 401(k) Plans
• Workers' Compensation
• Bookkeeping Service
• HR Experts & Training

Quantifiable outcome

• Customer saves $228/month compared to previous payroll provider
• +2 more outcomes

Named customers6 records

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration7 records

AI capability1 record

Feature3 records

Partnerships

Six partnerships are on record, tiered core.

• MineralcoreTechnology or IntegrationHR advisory and training partner providing HR Experts & Training services integrated with Patriot Software's HR offerings.
• SimplyInsuredcoreTechnology or IntegrationHealth insurance integration partner allowing customers to access and manage health insurance options directly through the platform.
• VestwellcoreTechnology or Integration401(k) plan integration partner enabling customers to offer retirement benefits to their employees through seamless platform integration.
• ERGO NEXT InsurancecoreTechnology or IntegrationWorkers' compensation integration partner providing insurance coverage management and compliance within the Patriot Software platform.
• StripecoreTechnology or IntegrationPayment processing partner for the accounting software, enabling secure payment collection and transaction processing.
• PlaidcoreTechnology or IntegrationBank transaction import partner enabling automatic bank feed connections for seamless accounting and financial tracking.

Scale indicators6 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Gusto: Gusto is a direct competitor offering cloud-based payroll, HR, and benefits for SMBs in the United States, with a similar product-led, self-serve GTM model and overlapping SMB customer base as Patriot Software.
• Xero: Xero is a cloud accounting platform for SMBs that has added payroll capabilities in the US market; it competes with Patriot's Accounting Premium offering on usability and integrations for small businesses.
• FreshBooks: FreshBooks is an SMB-focused accounting and invoicing platform that has expanded into payroll; it targets the same self-employed and small-business buyer with comparable pricing tiers and ease-of-use messaging.
• Wave Financial: Wave Financial (owned by H&R Block) offers free + low-cost accounting and payroll software for very small US businesses, overlapping directly with Patriot's Accounting Basic and Basic Payroll value proposition.
• QuickBooks Payroll (Intuit): Intuit's QuickBooks Online and QuickBooks Payroll target the same SMB accounting + payroll buyer with an integrated suite; it is the dominant incumbent in the segment Patriot competes in.
• OnPay: OnPay is a payroll and HR software provider focused on small businesses in the United States, offering tax filing and benefits at price points directly comparable to Patriot's Basic and Full Service Payroll tiers.
• Square Payroll (Block): Square Payroll is Block's SMB payroll product aimed at small US businesses, often bundled with Square's payments ecosystem; it overlaps with Patriot on payroll, tax filing, and integrations for the SMB market.

Broad incumbents

• Paychex: Paychex is a leading SMB and mid-market payroll/HR provider with a nationwide sales force; it competes directly with Patriot in the small-business payroll and HR software category.
• ADP RUN: ADP's RUN Powered by ADP is its small-business payroll platform, one of the largest incumbents in the SMB payroll market with broader scale and a longer compliance track record than Patriot.

Emerging players

• Rippling: Rippling is a fast-growing HR, payroll, and IT platform that is moving down-market into the SMB segment Patriot serves; its unified workforce platform represents an emerging competitive threat as it expands features and pricing tiers.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/@PatriotSoftware/shorts
• Xx.com/PatriotSoftware
• Facebookfacebook.com/patriotsoftware
• LinkedInlinkedin.com/company/patriot-software

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds3 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Patriot Software