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How many customers on Xero?

Rhys Roberts - Friday, January 27, 2012

With the Xero dealer conference coming up in NZ next week Xero have released updated customer numbers, with total paying customers up from 50,000 just 4 months ago to 60,000 now. 

That is a pretty staggering growth rate - up around 20% in 4 months.  Customer numbers have more than doubled every 12 months for the past 4 years (don't have March 2012 figure just yet obviously, but I am pretty confident it'll be a bigger not smaller than today's). 

Xero Customer Numbers

It seems to me that there is a huge amount of growth yet to come.  Xero haven't released a geographic breakdown, other than to say that 50% of those numbers are outside of NZ.  My guess - and it is only a guess - is that in Australia they currently have a market share of not much more than 2% - that is maybe 10,000 customers out of more than 500,000 businesses running an accounting solution of some sort (MYOB, Quickbooks, Saasu or other - and my focus is really on SMEs, so I am ignoring the larger systems run by most larger businesses).  

These figures are reflected in Viridity's experience over the past 12 months (obviously on a much smaller scale).  We have more than doubled our Xero sites in the past 12 months, and every one of these has been a new client to Viridity - we are not simply churning existing clients to Xero from other solutions. It is tempting to think the growth is all about the technology - that it is just about being a cloud solution.   But the message I get most frequently from clients is that this is not of itself enough.  What clients want is good quality, timely, commercially-focused financial information. 

Viridity's focus has always been on commercial accounting.  We take the view that whilst compliance is of course a requirement, it is never more than the essential minimum.  Rather it is the ability to deliver management information to assist business owners understand and control their business that is of value to our clients. And I have yet to find a better tool for this than Xero!

Yes, Xero may be "the world's easiest accounting software", yes, it may be "beautiful accounting software", yes, being "in the cloud" is funky, but this is just the enabler.  What my clients love about Xero (and the services we provide them) is the shift in focus from backward-looking tax and compliance to forward-looking financial business management advice.

Right now I have to say I am enjoying what I do for a living more than ever before.  Xero is the key tool that Viridity needs to really add value to clients.  And it is just going to keep getting better.

If you're interested in learning whether Xero is suitable for your business, please contact us today. We'd love to chat with you about your options.

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