Xero Preps For Launch Of New Metrics Tool

Managing cash flow is crucial to the success of a small business, but analyzing data is crucial to managing cash flow. Unfortunately, not all SMEs have the capability to manage and analyze the Big Data coming in. Xero’s Software-as-a-Service tool aids SMEs in managing their working capital, and the company’s recent $110 million in venture capital funding is reportedly being put to good use to expand these offerings.

Xero unleashed a slew of new upgrades on Thursday (April 30) at its Xerocon conference, providing more than just a facelift to its user interface. According to reports, the company will now provide business users with a mechanism to manage their data with a new dashboard that displays a variety of benchmarking metrics.

Among these data points include ROI, accounts receivable days, and debt-to-equity ratio, all crucial metrics to understanding a business’ cash flow. What made the display of these metrics possible is its new analytics capabilities, according to Xero Chief Technology Officer Craig Walker.

Xero is targeting a new level of connection for small businesses, the company’s CEO Rod Drury said, aiming for “rapid platform development beyond accounting.” SMEs need more than a connection with their accountants, he said, but also need connections with banks and large corporate customers.

The New Zealand-based company is now reportedly looking to become the face of electronic business connectivity. More than one fifth of SMEs in New Zealand, Drury said, use Xero already, and the nation has the infrastructure to support such digital connectivity between SMEs, accountants, banks and corporate customers.

Separately, Xero also announced its new partnership with payment service provider Paymark to develop an e-receipt network in New Zealand. The companies said they expect to launch a new service that allows for the flow of digital receipts into businesses’ accounting software sometime this year.

Earlier this year, Xero’s U.S. President Russel Fujioka spoke with PYMNTS to discuss the company’s expansion in North America and discuss the company’s goals for SMEs. “Our goal is to help companies visually see their upcoming expenses, bills, invoices and bank balances, and make educated business decision with up-to-date information,” he said.