- In the cloud: Xero leverages on cloud technology to enable its target users (SMEs and accountants) to make timely informed decisions and manage their business processes by allowing access to business finances and accounting functions in real-time, anytime they require
- Xero was founded in 2006 and had its IPO on 8 November 2012 on the Australian Stock Exchange with the XRO ticker
- Subscription revenue model: $121M (81% increase from 2014)
- Total customers: 475,000 (67% increase from 2014)
- Financial information and data are stored in Xero’s servers and the system/software is based online (no installations required)
- SMEs: Once subscribed, businesses can access the latest financial information instantly and manage business processes in real-time from a variety of devices (Mac, PC, tablets, phones). Users pay a monthly subscription fee which ranges from US$20 to US$40, depending on the pricing plan.
- Accountants: Xero links businesses to accountants who provide bookkeeping services. Xero has a Partner Program in place where Xero provides free subscription and pays commission depending on the partnership tier. In return, the accountant/bookkeeper actively promotes Xero to their clients.
- SMEs: Timely and up-to-date financial information for planning and decision-making. Easy management of business processes (e.g. invoicing, payments, reconciliations, etc).
- Accountants: Commission on client subscription to Xero, placement on Xero’s directory of accountants and bookkeepers (potential new clients), free Xero subscription and practice management software.
How it works
- Businesses: Users subscribe to the service and can start using the online platform immediately
- Accountants: Accountants sign up with Xero as a Partner and are bound by some terms