Xero Wants All Small Businesses To Do Accounting In The Cloud
For many small business owners, accounting can’t be further from being fun. Yet accounting is a vital function of any small business to manage their finances to ensure survival and long-term success. Understanding the necessity of accounting as much as its pain for small business owners, Xero (ASX: XRO) has made accounting fun, something that it never really has been.
From Zero to Xero
Xero is a cloud-based software as a service accounting platform. It has grown phenomenally from a tiny startup in New Zealand to a successfully dual-listed public company on the ASX and NZX with over 1,000 employees globally. In fact, the company’s value has grown exceptionally. After listing in November 2012, the stock peaked at more than 800% above the offer price. Today it trades at a more modest AUD$15.56, giving it a market capitalization of AUD$1.97 Billion. Some analysts rate the stock a sell, based on challenges with entering the U.S. in a bigger way. Revenues for the year ended 30 March were NZD$70 Million, up 83% from last year’s $38.4 Million . The company is yet to turn a profit.
While many small businesses were still using rudimentary accounting systems or even Excel spreadsheets, Xero knew the future was in the cloud. By giving small businesses, accountants and bookkeepers a way to do accounting online and from mobile, has revolutionized how they work. A survey by Xero revealed that 46% of businesses in Australia, not using cloud, are planning to do so in the next 12 months. Awareness of cloud accounting has been the driving factor.
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Shared from forbes.com.com