With the small business accounting software market competition heating up, Xero is vying to get ahead and announced its launch of operations into a new market.
A press release Thursday (May 17) said Xero has launched in Canada and, in collaboration with Deloitte Private, is linking its accountant companies in the country to ctrl by Deloitte. The partnership will aim to facilitate small business adoption of digital solutions, the companies noted, with Xero reporting that only 9 percent of Canadian small businesses currently use cloud accounting software.
The company also pointed to Statistics Canada data, which found about half of SMBs in Canada close within five years of launching operations. On average, however, 85 percent of companies using Xero reach at least the age of five.
“We believe that by connecting a small businesses’ financial world — using technology to bring financial data together with accountants and bookkeepers who can provide crucial advice — we can help more Canadian small businesses succeed and grow their profits,” said Xero Canada director Will Buckley in a statement. “We're committed to working in partnership with both small businesses and accountants to transform the way business is done and to help the entire economy thrive.”
“New technology, such as AI and machine learning, is opening up exciting opportunities for the accounting industry,” added ctrl at Deloitte national leader Bruce Derraugh in another statement. “Working with Xero will make it easier for us to help our small business clients connect all of their data and surface the meaningful insights that lead to better business decisions.”
Earlier this month Xero released its Fiscal Year 2018 earnings report, presenting a significant cut to losses compared to last fiscal year. The company attributed that improved performance in part to its migration to Amazon Web Services.
Industry competition is increasing, however. Xero, which poached former Microsoft Australia CEO Steve Vamos to head the company after Xero founder Rod Drury stepped down, is facing a new market competitor from Microsoft, which announced plans to launch a small business accounting and financial management startup in Australia with KPMG and Commonwealth Bank of Australia.