This is a significant milestone for the adoption of cloud accounting in the UK and one we expect will further accelerate our growth in the UK, the most hotly contested online accounting market globally.
A cornerstone of our strategy is to better equip accountants to play an important role at the cutting edge of service delivery and collaboration with small businesses in the cloud, so for one of the big guys to choose Xero’s platform upon which to build a new division for SMBs is no small endorsement.
KPMG’s leadership in the UK recognised that the emergence of online accounting presented a new volume market opportunity into which its client advisory services could be channeled to create a significant new line of business for an accounting brand more commonly associated with larger businesses.
“Today’s partnership further demonstrates our commitment to small and early stage businesses that form the backbone of the UK economy and its future growth,” said Collins. “Xero is an impressive software platform, supporting delivery of our services to this segment where technology is increasingly transforming the way we do business.”
In looking for a online platform partner with whom to build this new division, KPMG saw Xero stand out in a number of important dimensions.
- Accountants are central to Xero’s strategy.
- The new generation of online technology providers such as Xero, Vend or ReceiptBank enable accounting firms to deliver services in a way that was impossible with desktop accounting software.
- Xero’s Single Ledger and ecosystem of 300+ Add-on solutions greatly assists with KPMG’s service delivery.
- Xero is now the UK market leader in cloud accounting, with more customers in the UK than any other provider, notably more than the old incumbents Sage & Intuit.
In winning KPMG’s endorsement we believe their move into online service delivery will be seen as something of a starting gun for the remaining 18,000 UK accounting firms that have yet to fully embrace the new online world.
The first era of online accounting adoption was largely the preserve of the smaller, arguably nimbler firms but we’re now noticing a trend towards medium sized and larger firms also picking up that the economies of online service delivery are now too good to miss out on.