Xero …. who what when
According to the folks at Xero – Xero is ‘beautiful accounting software’ – ‘Beautiful’ – really – It’s accounting software …… OK if you think so !
Entirely cloud based
Focused on small business
Very open to and supportive of third party applications
Supportive of accountants serving small business
Founded in New Zealand in 2006, Xero is now staffed by some 1,400 people with an estimated 700,000 user.
When introduced, Xero was an exceptionally simple General Ledger accounting system which relied upon third party applications to produce realistic functionality. Today, Xero has dramatically expanded functionality – embedding and expanding ‘on-board’ features and functions. Although most advanced features are still ‘simplistic’ – the target market is seeking simplicity – thus simplicity is not necessarily a handicap.
Xero is very strong – with a significant following in New Zealand, Australia and the UK, however struggling to crack the USA market with long established contender Intuit boasting approximately 1.3 million users – or approximately double that claimed by Xero.
Primary, products range from the “Starter” edition at NZ$ 27.50 plus GST monthly to “Premium” at NZ $ 70 plus GST monthly. The Starter edition is extremely limited, capping number of transactions limiting its use to micro-businesses only. Premium and the middle package “Standard” remove the imposed limitations and add functionality.
We have asked many businesses why they switched to Xero. The leading answer, by a huge margin is “My accountant told me to.” Sorry folks – that is not a valid reason. The accountant will indeed benefit by your switch – will you ? Ask yourself –
Will Xero be responsive to your specific business requirements ?
What add-on products will be required to deliver your requirements ?
Are the add-on products more complex and costly than Xero ?
Will important transaction history be less accessible ?
Will operating procedures continue to be efficient with Xero ?
Xero is indeed outstanding software – just make sure it fits your business before switching.