Partner Article

UK small businesses ditching desktop for the cloud

Xero sees 77% UK customer growth for FY15

Customer growth signals growing appetite for cloud-based software

LONDON: Friday, 24 April 2015 – Cloud-based financial applications continue to grow in popularity for UK small businesses, with 77% more business owners choosing to use Xero’s cloud accounting and payroll app to manage their finances.

Xero has seen a record 36,000 UK customers sign up since 31 March 2014, with 83,000 UK small businesses now using the cloud-based software, compared with 47,000 this time last year. Globally Xero has seen a 67% increase in customers to 475,000 and a 76% increase in subscription revenue to ï¿¡60.5 million.

Gary Turner, managing director at Xero UK, says the company’s significant subscription revenue growth and continual increase in customers represents small business owners’ thriving appetite for cloud-based software. Business owners now expect to manage their business from anywhere, at anytime and on any device.

“On top of the ability to manage small business finances on the go, Xero offers the most comprehensive small business accounting experience,” says Turner. “And because we’re built in the cloud for the cloud, we’re able to continually develop our offering. In the last financial year we delivered more than 500 updates and features, including UK payroll and inventory which were launched this month.”

Already the cloud accounting leader in the UK, Xero expects the trend to continue as more small businesses understand the real benefits cloud software has to offer.

“Xero’s record customer growth in the UK over the last twelve months reflects a growing preference among small businesses for innovative cloud products and the rejection of ageing, disconnected desktop software,” Turner adds.

Xero’s expanding add-on marketplace is further proof of the cloud revolution, with more than 400 cloud-based solutions integrated with the accounting platform.

“We’re seeing some of the most exciting financial technology companies integrating with Xero to help change the way small businesses work.”

Some of the latest European fintech companies to have joined Xero’s marketplace include popular point-of-sale business iZettle and the disruptive foreign currency exchange app TransferWise that helps small business avoid hefty hidden bank fees.

UK highlights for the financial year included:

â– Received ï¿¡71.3 million in new investment from Accel Partners and Matrix Capital Management to drive growth in UK and US, bringing total cash balance to ï¿¡136.2 million

â– Grew to 83,000 UK customers, up 77% from 31 March 2014

â– Over 500 customer-facing product updates in FY2015, and more than 220 updates so far in the 2015 calendar year

â– Ranked No. 1 by Forbes in the Most Innovative Growth Companies for 2014

â– Launched Payroll in Xero for UK customers

â– Welcomed Metro Bank to growing network of automated bank feeds, alongside RBS, HSBC, Natwest and Silicon Valley Bank

â– Hosted 800 delegates at Xerocon London, now the UK’s largest fintech conference

This was posted in Bdaily's Members' News section by Xero .