Xero is on a mission to rewire the economy to help Canadian small businesses thrive
TORONTO, May 17, 2018 (GLOBE NEWSWIRE) — Xero is officially launching in Canada, giving small businesses and accountants access to leading-edge AI and machine learning technology on a global cloud accounting platform.
As part of the launch, Xero is joining forces with Deloitte Private’s financial collaboration platform, ctrl by Deloitte, to give accountants across 56 offices in Canada the ability to accelerate their small business clients’ adoption of digital tools.
Until now, Canadian small businesses and accountants have been limited in their ability to take full advantage of the power of cloud technology. Only nine percent of Canadian small businesses are currently using cloud accounting software.
According to Statistics Canada, approximately half of small businesses go out of operation within five years. By contrast, data from countries where Xero is already established shows that 85 percent of businesses working with an accountant on the Xero platform succeed five years and longer.
Xero’s mission is to rewire the global economy by connecting millions of businesses to their banks, advisors and each other. The Xero platform automates much of the mundane work that used to take up time for accountants and bookkeepers, and enables closer collaboration with small business clients by making it easy to share data, uncover insights, and plan for the future in real time. Key benefits include:
- Automating mundane tasks: Xero uses AI and machine learning to automate the menial and repetitive tasks of running a business while increasing the accuracy of business data. Xero recently announced that it has delivered more than 1 billion machine learning recommendations to subscribers.
- Connecting all business data on a shared ledger: Xero makes it easy for a small business to connect their banking information, as well as data from 600+ small business apps, including Canadian-based companies like Shopify and Hubdoc. This provides small businesses and accountants with a real-time view into what’s happening in the business.
- Delivering real-time insights: the platform makes it easy for small businesses and accountants to have meaningful conversations about key decisions — everything from navigating compliance requirements to major business transactions.
- Providing a dedicated support team: Xero is establishing dedicated local teams in communities across Canada to advise accountants on how best to transform their practices. Xero will work alongside accounting firms, helping them use technology to evolve from a focus on compliance services, to more strategic complex advisory services.
“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 Will Buckley, Director of Xero Canada. “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”
“We’re excited to work with Xero’s leading-edge financial technology to help our small business clients thrive,” said Bruce Derraugh, National Leader, ctrl at Deloitte. “New technology, such as AI and machine learning, is opening up exciting opportunities for the accounting industry. 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.”
“ConnectCPA’s mission is to help businesses grow and improve their profitability,” said Mike Pinkus, co-founder of ConnectCPA. “We have been leveraging the real-time collaboration benefits of Xero and the app ecosystem since 2014 to help us achieve our goal. Our journey has allowed us to help hundreds of businesses across Canada to reach new heights.
New Report on The Future of Accounting in Canada
Accounting and bookkeeping is often cited as one of the industries most likely to be impacted by advances in automation technology, such as AI. However, data from Xero shows that the opposite is happening.
A new report from Xero shows that accounting practices in Canada are experiencing a period of sustained growth, with average revenue growth of 17.4 percent over the last year. Pacesetting firms — those in the top 20 percent of revenue growth — grew by 26.1 percent.
The report shows that accountants who embrace technology to evolve their practices — moving from compliance-focused services to broader complex advisory services — are experiencing the fastest growth. The report shows that:
- Firms focused on compliance work — helping clients with tax and other government reporting requirements — grew revenues by 15 percent.
- Firms delivering simple advisory services — working with clients on cash flow forecasting, budgeting and planning — grew by 17.8 percent.
- Firms capable of offering complex advisory services — helping navigate intricate business transactions — grew by 19.7 percent.
Firms delivering complex advisory services are more efficient, generating more revenue while spending less time on each individual client.
- Firms focused on compliance work spent an average of 294 hours per client, generating $75,000 in revenue per employee.
- Firms delivering simple advisory services spent an average of 178 hours per client, generating $108,600 in revenue per employee.
- Firms capable of offering complex advisory services spent an average of 99 hours per client, generating $135,600 in revenue per employee.
The report also shows that firms delivering complex advisory services have gone from working in their business to working on their business. On average their employees spend 7.6 hours each month learning about new business apps. By contrast, employees at simple advisory firms spend 6.2 per month and employees and compliance-focused firms spend only 4.9 per month.
Xero Roadshows in Toronto, Vancouver and Calgary
Xero is hosting a series of events across the country to help accountants understand how the Xero platform works, learn about specific opportunities and obstacles facing Canadian small businesses, and explore ways to boost their practice by incorporating the latest technology. The events will also provide an opportunity to learn more about Xero’s vision for the future of the accounting industry in Canada.
The events are being held in Toronto (May 17), Vancouver (May 22), and Calgary (May 23). For more information and to register click here.
650 224 2362