U.K. / Xero sets sights on payroll and final accounts

Rachael Power for AccountingWeb writes: Cloud accounting software firm Xero is planning to expand its offering for practitioners with payroll and accounts production applications. Rachael Power reports. 

Xero's plans to expand its practice offerings is being mapped out at a series of roadshows this month to launch its new Practice Manager module. AccountingWEB attended its Bristol event last week.

During a product update session, Xero gave an update of its roadmap, which included: 

• A payroll product planned to go live in April 2015
• Two new bank feeds for Natwest and RBS customers (it already has an HSBC feed)
• An overhaul for its dedicated smartphone app and a new version for Android users
• The launch of Smart Lists, a CRM system for small businesses.

In addition to these forthcoming product announcements, Xero said it had"finally nailed VAT" in the UK. Managers also hinted that Xero was working its way slowly but surely towards delivering online accounts production software. 

Funded through a listing on the New Zealand stock exchange, Xero has been growing rapidly around the world as a bookkeeping challenger to market leaders such as Sage and Intuit. Since 2012, the developer has shifted its focus from small business customers to practitioners who can themselves become an influential channel to the wider SME market. By making it clear that it's going to move into payroll and accounts production, Xero is now stepping up to take on the UK practice software giants Sage and IRIS in their own back yard.

A new "build your own" reporting engine will provide the foundation for Xero's final accounts mechanism. This report generator is expected to be released by the end of 2014. In addition to the usual UK report packs it could be configured to produce a set of final accounts, but won't be iXBRL-ready until next year. 

Accountant Olly Evans, from Bristol-based Evans & Partners, said the Xero roadmap included some real "game changers".

"Adding UK payroll and accounts production will really shake up the accounting software market – often seemingly driven by slow and complacent software providers. The Xero approach is engaging and collaborative where Sage seem to just continually put the price up and never ever speak to me.

"How about allowing businesses to press their own accounts production button? This means that accountants will have to stop relying on the compliance workload, but focus on more useful advice and help services for clients. An exciting challenge I think," he said.

Xero indicated it has no plans to provide a personal tax product to the UK at the moment as it would be a "huge task". But a solution for corporation tax is on the horizon, which pleased several attendees including partner panel member Paul Miller of Cornish Accountants. [snip].   The article continues @ AccountingWeb UK , click here to continue reading.