Xero
by Xero
by Xero
Profile Information Last updated on: 9 August 2024
Profile Information Last updated on: 9 August 2024
We help make selecting a software for your business effortless, economical and efficient.
by Xero
by Xero
Profile Information Last updated on: 9 August 2024
Profile Information Last updated on: 9 August 2024
Xero is a New Zealand-based technology company that provides cloud-based accounting software for small businesses. Founded in 2006, Xero has grown to become a leader in cloud accounting with a global presence, including offices in New Zealand, Australia, the United Kingdom, the United States, Canada, South Africa, and Singapore. The company serves over 4.2 million subscribers worldwide, offering a range of accounting and business management solutions designed to simplify financial administration and improve business efficiency.
Xero was founded in 2006 by Rod Drury and Hamish Edwards in Wellington, New Zealand. The founders identified an opportunity to shift from desktop to cloud-based software, aiming to create a dynamic accounting solution for small businesses. The company went public on the New Zealand Exchange (NZX) in 2007 and later listed on the Australian Securities Exchange (ASX) in 2012. Xero transitioned to a sole listing on the ASX in 2018. The company has experienced significant growth, expanding its user base and revenue, and is now used in over 180 countries.
Xero has raised substantial funding over the years, starting with a NZ$15 million initial public offering (IPO) in 2007. Notable funding rounds include NZ$23 million led by MYOB founder Craig Winkler in 2009, US$16.6 million from Peter Thiel's Valar Ventures in 2012, and an additional NZ$180 million from Thiel and Matrix Capital in 2013. In 2015, Xero raised $100 million from Accel and $10.8 million from Matrix Capital. By 2019, Xero's market capitalization on the ASX exceeded NZ$10 billion, making it one of the most valuable publicly listed New Zealand companies.
Xero offers a comprehensive suite of cloud-based accounting tools tailored for small and medium-sized businesses. Key features include:
Automated Bank Reconciliation: Simplifies the process of matching bank transactions with accounting records.
Invoicing and Billing: Allows users to create, send, and track invoices.
Expense Management: Facilitates the capture and management of business expenses.
Payroll Processing: Manages employee payroll, including tax calculations and payments.
Inventory Management: Tracks inventory levels and manages stock.
Real-Time Financial Reporting: Provides up-to-date financial reports and insights.
Multi-Currency Support: Handles transactions in multiple currencies.
Project Management: Tracks time and costs for projects and jobs.
Mobile App: Offers on-the-go access to financial data and tasks.
Xero has strategically acquired several companies to expand its product offerings and enhance its capabilities:
Paycycle (2011): Australian online payroll provider.
Spotlight Workpapers (2012): Accounts preparation and tax filing application.
Hubdoc (2018): Data capture application.
Instafile (2018): Cloud-based accounts preparation and tax filing application.
Waddle (2020): Invoice financing startup.
Locate Inventory (2021): Inventory management provider.
Xero continuously updates its platform with new features based on user feedback and market needs. Recent updates include:
Enhanced Bank Reconciliation: Allows users to see up to 50 statement lines at once and includes search, sort, and filter options.
Profit and Loss Drill-Down: Provides a detailed breakdown of transactions in the profit and loss report.
Invoice Attachments: Enables users to attach files to invoices directly from the Xero file library.
Guided Payroll Onboarding: Improves the payroll setup process.
Xero's company culture is built around five core values: Challenge, Champion, Ownership, Beautiful, and Human. These values emphasize innovation, customer support, accountability, and a focus on creating a positive work environment. Xero is known for its supportive and inclusive culture, which encourages employees to take ownership of their work and strive for continuous improvement. The company also places a strong emphasis on mental health and well-being, fostering a supportive community for its employees.
Xero has a diverse and growing user base, with over 4.2 million subscribers globally. The platform is widely used by small and medium-sized businesses, accountants, and bookkeepers. Xero fosters a strong community through its support resources, including Xero Central, live webinars, and in-person events. The company also engages with its user community through platforms like Xero Product Ideas, where users can suggest and vote on new features.