Definitions

Xero Small Business Insights aims to provide a snapshot of the health of small businesses in New Zealand, to drive informed decision-making in support of the small business economy.

The metrics presented on this website have been calculated by using anonymised, aggregated data drawn from a large sample of our New Zealand customer base of more than 300,000 Kiwi subscribers subscribers.

The methodology applied in calculating each metric is designed to capture data from a larger sample set than other business indexes and surveys, and provide a comprehensive picture of business conditions. The methodology may be amended or updated from time to time to ensure it remains accurate and timely. This may cause historical data presented in the charts on this website to change, meaning it may slightly differ to historical references in some published articles and in the media.

All small businesses included in the sample data set have been active on Xero for a minimum of 12 months. The samples of data selected to calculate all metrics covered a period of 36 months to enable assessment of trends over time. In all cases, there’s a two month period between reporting date and publish date, to allow enough time for small businesses to reconcile their accounts and finalise their numbers.

The methodology applied in calculating each metric is summarised below.

Cash flow
Xero calculated the total dollar value of cash coming in and going out of small businesses each month to determine the percentage of small businesses that were cash flow positive. The data sample included only transactions that were either fully or partially paid and resulted in money entering or leaving a bank account.

Getting paid
Xero selected all accounts receivable invoices that were issued by active New Zealand small businesses on Xero each month to determine the average number of days late that invoices are paid. The sample included all invoices with a payment period up to 90 days.

Hiring people
Xero selected active New Zealand small businesses that use Xero payroll, and calculated the percentage movement in the number of employees paid by these businesses each month. Only small businesses that had been active on Xero payroll for a minimum of 12 months were included in the sample.

Trading overseas
Xero selected a sample of small businesses that had traded in a foreign currency in a given month, and calculated the month-on-month percentage movement in the total value of foreign currency transactions that resulted in an amount coming in or going out of a bank account.

Cloud adoption
This metric shows the year-on-year movement in the total number of subscribers using Xero in New Zealand. This metric will be updated twice a year, when Xero’s half-yearly results are released. The expanded pie graph shows the top 5 industries adopting Xero, broken down by growth year on year.