Comments for Startup Finance: Xero Powers Accounting in the Cloud

Startup Finance: Xero Powers Accounting in the Cloud

2010-01-18T22:30:00Z

When New Zealand-based entrepreneur Rod Drury began researching his market he could hardly believe what he was seeing. As seen in Drury's comments last week on the state of the online finance ecosystem, only a handful of players like Saasu and MYOB were targeting small business clients. While Drury saw that a number of cloud-based personal finance companies like Mint were gaining traction with users, small businesses had been stuck with the same tired desktop accounting software they'd been using for the last ten years. Drury built Xero with the intent to help small businesses manage their accounts in the cloud.

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When asked why the cloud is so important for accounting services he explains, "In the past small businesses rarely shared their business data with accountants as the majority of billable hours were spent simply extracting the right information." Says Drury, "The fact that your entire business can now look at your accounts in the cloud means that the accountant can finally act as a business advisor and improve your cash flow."

Xero also works with a number of banking institutions. This means that rather than waiting 5 business days for a bank to reconcile your accounts, they're up-to-date with your daily transactions.

There are currently 12,000 companies working with Xero (including ReadWriteWeb) and the company recently launched integration with invoicing service FreshBooks and CRM-tool Salesforce. For between $19-39 dollars per month startups can access their accounts from anywhere and reduce the anxiety around the accounts payable and receivable process. To try it for yourself visit xero.com.

Editor's note: This story is part of ReadWriteWeb's Online Finance series, a weekly, three-month long look at how the Internet has transformed finance. Up until April 15, the deadline for U.S. readers to file their taxes, we'll be looking at how finance software has evolved, analyzing top web tools and posting video of our conversations with the people who are shaping online finance. If you are interested in sponsoring the rest of this Content Series, please contact our COO Sean Ammirati.

Comment from StreetfolioFan on 2010-01-18

2010-01-19T00:17:26Z

I'm a big fan of Xero!

I also use another great web tool http://www.streetfolio.com.

I use Streetfolio to manage my real estate finances (mortgage, rent and property expenses).

Both Xero and streetfolio are cloud based and simple to use!

Comment from Dave Nattriss on 2010-01-18

2010-01-19T00:43:15Z

The excellent British-based (with coverage of all the relevant UK taxes, whether you're a sole trader, partnership or limited company with employees etc.) alternative to Xero is FreeAgent - sign up for a free trial then get 10% off if you subscribe here: http://www.freeagentcentral.com/?referrer=2jo837qt

Comment from James on 2010-01-18

2010-01-19T01:52:38Z

Definitely check out MinuteDock if you like Xero - it's a slick time tracker that plugs right into Xero. It automagically creates invoices based on your time entries, and lays them out in a coherent way that won't leave your customers asking questions! http://minutedock.com

Comment from Jane Williams on 2010-01-19

2010-01-19T12:28:50Z

This is a good idea for start-up business.

Comment from Pete on 2010-01-19

2010-01-19T19:07:22Z

The people at XERO have created their Network API that allows partners to integrate smoothly without any problems. It basically requires a simple line of code to transfer to and from XERO. Out of all my experience in integration with outside applications, XERO is one of my favourites!

Comment from Elliot on 2010-01-19

2010-01-19T21:28:39Z

12,000 companies with Xero as of Sep 31st 2009. 15,000 today!

Comment from Kristen on 2010-01-20

2010-01-20T21:04:11Z

When we're talking business accounting and doing it online...QuickBooks has a stellar app. (Quickbooks online)

To your point in the article, managing that multi user access and sharing the right information is critical. QuickBooks Online makes it effortless to connect with other users...setting someone up to share your books real time or to access time tracking is as easy as e-mailing them an invitation. Away with the complicated set up or IT specialist.

Kristen Berman
QuickBooks Online Product Manager

Comment from Justin on 2010-01-22

2010-01-22T10:10:04Z

Kristen - correct me if I'm wrong but isn't Quicken Online is being phased out? Not so steller perhaps?
http://www.businessweek.com/technology/content/jan2010/tc2010018_451437.htm
"Four months after Intuit (INTU) bought personal finance Web site Mint.com, the company is preparing to phase out its Quicken Online software, moving Intuit's Web users to Mint."

Comment from Daniel on 2010-01-24

2010-01-25T00:08:15Z

Is it not irresponsible for Quicken to be generating this product at it is being phased out?

Comment from Peter J Cooper on 2010-01-24

2010-01-25T02:36:24Z

I use saasu.com for a fair few businesses now, as a business owner and angel investor it makes it very easy since it is all online and I can switch between businesses easily and you don't have to pay a ridiculous amount to get all the real features like payroll/salaries and inventory plus all the usual stuff like multi-currency and cool sales analysis reports. Cheers, Pete.

Comment from Peter J Cooper on 2010-01-24

2010-01-25T02:38:45Z

Oh, I forgot to mention, saasu integrates with heaps of banks, has had salesforce integration for years plus timesheets inside and via integrated partners like 88miles. There are also point of sale integrations like touch cashier and content management systems integrations, payment systems and hundreds of partners. - Pete.

Comment from Kristen on 2010-02-01

2010-02-01T17:02:50Z

@peter and Daniel...Quicken Online is being phased out, you are correct. Quicken focuses on helping manage personal finance.

I was/am referring to QuickBooks Online. QuickBooks Online is Intuit's web accounting product for small businesses. We're not phasing out this at all! In fact, we're completely energized around helping solve small business accounting with a QuickBooks online solution. LMK if you have questions on this. Thanks for seeking the clarification.

Comment from Jason M. Blumer, CPA on 2010-03-07

2010-03-07T22:05:11Z

Xero is a great offering if QuickBooks does not meet your needs. That is why our CPA firm is one of the first in the US to deploy, install and support Xero.

Kristen is right in that QuickBooks Online is a great tool as well, but many clients of our CPA firm are uncomfortable with QB Online as it is so different than the QuickBooks desktop version.

But our firm now hosts QB desktop version for our clients so that they still have the freedom of SaaS and the flexibity of paying for their software monthly. Works on the Mac too.

Whether we are implementing Xero or QB in a remote hosted environment, we are pushing our clients online and watching them enjoy the freedom of online accounting.

Great post!

Jason M. Blumer

Comment from Michael Hsu on 2010-03-30

2010-03-30T08:31:42Z

Very cool share. I am currently looking for an online solution for my clients that is robust enough to scale with as their business grow. Will definitely give Xero a closer look.

Comment from Brock Donald on 2010-04-16

2010-04-16T12:52:33Z

Xero is a fantastic product. Simular, but different is Saasu. We integrate with both Xero and Saasu, and find an even mix with our customer using them. With our system working with Xero, you can effectivily cloud your whole business.
www.fieldconnect.co.uk

Comment from Alex H. on 2010-05-27

2010-05-27T21:22:31Z

After watching the video, Xero looks great. I love how it can automatically match invoices with your bank statements and being able to automate invoices to repeat. I've been looking at Freshbooks so I'll have to look into the integration features.

Comment from primrose ariyan on 2010-09-26

2010-09-26T19:38:27Z

good tips for business

Comment from Jessica America on 2011-01-07

2011-01-07T12:13:22Z

Xero is awesome.

www.loanforbadcredits.com

Comment from Carla Whitmore on 2011-04-04

2011-04-04T14:54:31Z

Generally I do not post on articles, but I would like to say that this blog really forced me to do so! Thanks, really nice blog.

Comment from MCA_2 on 2011-04-20

2011-04-20T07:56:28Z

Reading this i finally took a break from my job. This post just gave me a few minutes of relax =] I tried to find a rss feed on your site so that i could subscribe for some more. Ill be sure to come here more often from now on =]
advance merchant

Comment from vanguardbookkeeping on 2011-04-21

2011-04-21T08:41:49Z

As a professional bookkeeper, I use a range of different accounting solutions. I only work in the cloud now, and enjoy the efficiencies that brings.
QuickBooks Online, saasu, and Xero are all great solutions, and I am a fan of all of these.
I love Xero for it's ease of use, bank feeds, cash coding and bank rules, also it's integration with all sorts of third party apps.
I love saasu for it's solid payroll and inventory modules.
QB Online is the enterprise version of the QB I love - with ALL the fruit...
Reach is another that is making real head-way and is perfect for most micro-business with only a tiny overhead.

They all have their individual strengths and each one will suit some businesses better than others.
How do you choose? Look beyond the 'eye candy'.
Now WHO will 'drive' your accounting program? - the person doing your bookkeeping, of course.

Your accountant probably has his own personal preference, however he will likely only work with the quarterly or annual reports - and not actually 'drive' the program.

You should speak with a professional bookkeeper who has familiarity with different systems and seek their advice on which service will suit you before you commit to implementing a solution.

David Bowles
david@vanguardbookkeeping.com.au
Xero Certified Adviser
QuickBooks/Reckon Partner
saasu Partner