The company said it was offering free copies of the product, worth £399, to the first 5,000 business with up to 20 employees as part of a drive to create a small business community of 'like-minded businesses'.

Community members will be given access to accounting software, support and advice in an environment where they can exchange ideas and knowledge to enable them to manage their accounts more effectively for business advantage.

Businesses may apply for the new software, which features sales, purchase and nominal ledgers, invoicing, cashbook and stock control, by going to www.pegasus.co.uk.

As well as the free software, users of Pegasus Capital will be able to access an online discussion forum as well as additional training and support resources via the community website.

Andy West, chief operating officer of Pegasus said: 'We want to build a community of small businesses and the best way to do that is to get them on board experiencing the real benefits it brings. This is a genuine effort to stimulate the presence of our brand in the entry level accounting software market on the one hand, and to help businesses grow on the other.'