Is Xero Going to SMASH Sage One in Britain?

Xero, is currently targeting tradespeople like plumbers to help them run their own small business using cloud based accounting software. In Australia they SMASHED the market leader who was entrenched as the preferred choice for over 2 decades.

This year, the number of subscribers in the U.K. increased by 47 percent to 312,000, the single greatest increase in subscribers out of any of the company’s established markets (which include Australia, New Zealand and North America).

By revenue, the U.K. represents the company’s second-largest market — after Australia and ahead of New Zealand — generating $79.6 million NZD (£41.4 million) in revenue in FY2017/18 and representing a 60 percent increase on the prior comparative period.

By comparison, the U.K.-based Sage Group, which operates cloud accounting system Sage One, has 405,000 subscribers in the U.K. and generated £368 million in revenue in FY2017/18 from northern Europe. (Sage doesn’t break down its revenue any further, but considers the U.K. and Ireland it’s major markets in northern Europe.)

In terms of revenue, it’s not a close race. Even if Xero should surpass Sage One’s subscriber base, the company operates in many other established markets around the world — particularly in central and southern Europe to easily facilitate cross-border trade, in addition to North America, Africa, Latin America and the Asia Pacific.

More realistically, Xero will become a No. 2 player in the U.K. market, which can easily support two major cloud-accounting companies, if not more. (That’s unlike Australia and New Zealand, markets that cannot support more than one market-leader.)

But because the two companies differ in pricing and product offering — Sage offers enterprise options, for example — two major cloud-accounting companies competing in the same market is good news for business owners and bookkeepers.

Business owners can choose a cloud accounting system that suits their budget and needs, while bookkeepers have the opportunity to work with more businesses and expand their range of services.

So, if you’ve recently shifted to Xero for your business — or you’re planning to become a Xero bookkeeper — visit and subscribe to the ShowEzy website. There you’ll access Xero video tutorials and training, which cover major Xero features, such as creating invoices and reconciliation reports.


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