It’s official! Xero is launching in Canada. We couldn’t be more thrilled to be here to support Canada’s small businesses and accountants through our beautiful business platform. Over the next two weeks, we’ll be out on the road for our first ever Xero Roadshow in Canada!
We’re kicking things off today in Toronto, before we make our next stop in Vancouver. By the time we wrap things up in Calgary, nearly 1,000 Canadian accountants and bookkeepers will have come together to explore the future of the accounting industry, incorporate the latest technology into their practice and of course, Xero. It’s an exciting time to be part of the Canadian accounting and small business community!
Rewiring the Canadian small business economy
Until now, Canadian small businesses and accountants have been limited in their ability to take full advantage 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.
Research shows that poor cash flow management is one of the most common reasons a small business closes its doors. And yet the technology currently available on the Canadian market does not make it easy for small businesses to solve this problem. It is extremely complex – and in some cases impossible – for entrepreneurs to piece together all of the essential data that flows across their business.
At Xero, we believe that the key to improving Canada’s small business survival rate is human technology. This makes it easier for small businesses to connect all of their data and collaborate with their most trusted advisor – their accountant. In fact, we’ve found that small businesses who collaborate with an accountant on Xero have an 85 percent success rate at the five year mark.
In a world of machines, putting the ‘human’ in technology
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 launched today at the Toronto leg of the Xero Roadshow shows that accounting practices in Canada are experiencing a period of sustained growth. The Canada 2018 Accounting Industry Report, commissioned by Xero, compares performance across three different types of Canadian accounting practices. The report uncovered 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 growth.
At Xero, we’ve been at the leading edge of building technology that has disrupted the accounting industry. However, we’ve always thought of accountants as our number one customer, partner and ally. We’ve always believed that new technology could be a force for good for accountants, their clients, and the broader economy.
We ensure that our disruptive technology is a force for good. We do this by starting with the conviction that we are, at our core, a “human technology company”. So that means that everything we build is designed with people at the center. We innovate in order to solve real world problems.
Instead of eliminating the role of the accountant, our “human technology” platform serves to augment their role. We enable them to collaborate more closely with their small business clients. Because we make it possible to share data, uncover insights, and plan for the future – in real time.
This is only the beginning
As part of our launch in Canada, we’re joining forces with Deloitte Private’s financial collaboration platform, ctrl by Deloitte. We’re giving accountants across 56 offices in Canada the ability to accelerate their small business clients’ adoption of digital tools. Over the coming months and years, we’ll continue to give accountants and bookkeepers access to the tools they need to better serve their clients and boost their firms.
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. So we’re committed to working in partnership with both small businesses and accountants to transform the way business is done. In doing so, we aim to help the entire economy thrive.
The pace of technological innovation will continue to accelerate in the coming years. Only human technology platforms can deliver a positive social impact. Technology alone will never be the solution. People will be.