Posted on 30-Nov-2010 22:41.
Filed under: News
Xero is the first accounting provider to launch bank feeds across the UK and Ireland – covering more than 55 financial institutions. The company says this can provide time savings of as much as 90% can be made on the processing of bank statement data.
By enabling bank transactions to appear automatically inside the accounting application, time consuming, manual keying or importing of bank transactions is eliminated. Instead banking data automatically downloads daily into Xero, giving small business owners a real-time view of their cashflow.
Xero market tested its bank feed strategy in the UK when in May 2009 it entered into an exclusive arrangement with HSBC to make bank feeds available to the Bank’s customers using Xero. The success of this initiative has provided the motivation to extend bank feeds to a greater number of banks in the UK.
As well as a huge help to small businesses, bank feeds provide associated accounting firms with significant efficiency gains. Accounting analysis is also much simpler and faster, interaction with clients more timely, and there’s the opportunity to add value by producing regular management reports and supporting services. Bank feeds provide a revolutionary opportunity for the UK accounting profession to update, add value, be competitive and stay relevant.
“We are excited to be the first accounting vendor in the UK to connect banking to accounting with daily banking transactions automatically loaded into Xero, says Xero UK Managing director Gary Turner. “Our experience with bank feeds in other countries is that it is the first business process change that small businesses have implemented for many years. Having near real-time accounting is transformational and we believe all small businesses will demand bank feeds in their accounting software over the next three years.”
“Automated bank feeds so profoundly transform a business owner’s ability to manage their cash that we decided that it should be a standard feature for no extra cost, regardless of whether you have one bank account or ten.”
Gary Turner says the launch of automated bank feeds puts Xero ahead of both its online competitors and laggardly incumbents such as Sage. “Xero is four years and 27,000 customers farther down the track and our growing momentum makes us a real alternative for small businesses and their accountants.”
“We admire the past success of old guard businesses such as Sage, but its ability to deliver the kind of fresh innovation that is being demanded by small businesses today will always undermined. This is because Sage is addicted to its software maintenance revenue model that forces customers into regular and often costly upgrades, to what is now an ancient product family,” says Gary Turner.”
“Sage may make noises about embracing a more cloud-based strategy, but the reality is it can’t do so without inflicting real damage to its existing business interests - a painful compromise that Sage remains happy to pass on to its customers.”
While new in the UK, Xero has already found success with bank feeds in other parts of the world such as Australia and New Zealand. In these countries all major banks support bank feeds into Xero and more than 75 percent of Xero customers take advantage of bank feeds.