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Upcoming Xero price changes (INCREASES)

So glad I changed my allegiance

Didn't find your answer?

Another price increase for those who LOVE beautiful accounting software.

I will move more clients to the less pretty (same functionality) QuickBooks 

https://www.accountingweb.co.uk/any-answers/quickbooks-massive-discounte...

Replies (13)

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By Roland195
27th May 2021 11:21

Most on here seem to share the view that you shouldn't hitch your wagon to any software provider & that the financial reward available through re-selling does not begin to compensate for the issues that it brings.

Intuit were late to the market with their current version of QB & so trying to catch up with Xero - Once they do so, I am sure their prices will follow. But by then you'll have moved your clients to Sage.

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Replying to Roland195:
Slim
By Slim
27th May 2021 11:39

Pretty much.

If it all gets too much there is always VT.

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bike
By FirstTab
27th May 2021 13:06

They will be further increases from Xero. Since they have worked out very few will bother changing. An overall small loss in subs probably well outweigh the gains.

Thankfully, I am on a fixed price for the next 8 years. After this, I will see how it goes.

I am well aware QB are a business. I am taking advantage of their current offers. Xero would not even entertain the concept to go some way to match the offer.

Inertia is on Xero's side. They know. Vote with your subs and it changes.

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Replying to FirstTab:
Glenn Martin
By Glenn Martin
27th May 2021 13:18

What happens if QBO bring out there bookkeeping service in the UK and you have all your clients sitting on their platform ripe for plucking.

In the scheme of it £2 extra which is recharged to clients anyway is neither here nor there in the scheme and its been 2019 since an increase. Still worth it against the time savings for a proper business with staff etc. Makes you wonder what will happen to the 3 million people who keep paper records or spreadsheets and what they will do come 2023 and the MTD for tax rollout.

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Replying to Glennzy:
bike
By FirstTab
27th May 2021 13:34

My clients do their own bookkeeping. So no problem.

There is a limit to what clients can take. Further, I provide Xero/QB as part of the package. Cost is not separated.

It is inertia that makes them feel okay with price increases.

I have a fantastic 8 year deal with QB. This is long term. At least for this period, I am making a significant saving as compared to Xero. Hardly any difference in functionality.

I have no doubt they will be prices increase from Xero in the 8 year period.

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Replying to FirstTab:
Slim
By Slim
27th May 2021 15:13

QBO offered me a very very good deal but I just hate using it so didn't bother.

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Replying to Slim:
bike
By FirstTab
27th May 2021 15:25

I understand, some things are more important than money. For me, money is more important than other stuff.

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Replying to Glennzy:
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By Mr_awol
27th May 2021 15:25

Glennzy wrote:

What happens if QBO bring out there bookkeeping service in the UK and you have all your clients sitting on their platform ripe for plucking.

In the scheme of it £2 extra which is recharged to clients anyway is neither here nor there in the scheme and its been 2019 since an increase.

The increase isnt the issue - the issue s more that it was already expensive for what it was, and certainly (id say) no longer has an claim to being either the 'only' or the 'best' software now others have also got the bank feeds and other integrations.

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Replying to Mr_awol:
Glenn Martin
By Glenn Martin
27th May 2021 16:36

The add on market is still way behind with other products, they always build for Xero first, QBO some where down the line and Sage if they can be bothered 2 years later. The end to end offering with Xero tax is potentially a game changer for many if it means they can rid their practice of the cost of Taxcalc, IRIS digita etc.

Whilst these things are infuriating the cost of transfer or retraining still far outweighs the small increases.

I do suspect you will see a lot of price hikes as at some point the apps have to make money or go bust Chaser just put out a big increase, RB/Dext are also making noises around upping the cost of practice plans etc.

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Replying to Glennzy:
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By Andy556
27th May 2021 18:30

I like the word potentially for Xero tax. I really can't see this working.

So all your clients would need to be put on Xero to remove Taxcalc etc completely. Taxcalc etc are priced in brackets and most have unlimited clients, Xero like to charge a subscription per user which will massively out price themselves from the market even if it's £1 per month

I'm interested to see what their plans are, it will take something impressive to move away from the existing practice software

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Replying to Glennzy:
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By Mr_awol
03rd Jun 2021 08:50

I’m not convinced (m)any practices are going to be ditching Iris or Digita to use Xero tax.

We use digita and as poor as the accounts module is now, the tax one is excellent. We are not about to migrate x,000 tax return clients on to Xero, especially not the ones that don’t have separate accounts, rental income, etc. As Andy says, we’d probably end up paying more for Xero anyway.

Maybe a very small one man band dealing almost exclusively with £300 subbies might be tempted, or the type of practice that files on HMRC software.

Overall Xeros main selling point is that they ‘may’ get some bits of MTD for IT slicker faster - but looking back on their software ‘developments’ over the last few years they aren’t convincing me they’d push on and stay ahead. I suspect they’ll just steal a March and then be overtaken by rivals like they kind of have with their current offering.

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A Putey FACA
By Arthur Putey
27th May 2021 15:36

Started to draft my version of this and posted it before seeing it, but I'm more interested in what else is out there, that has maybe overtaken Xero, but perhaps without bells and whistles I don't need.

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By jon dickinson
02nd Jun 2021 18:00

At a time when small businesses are starting the road to recovery why do Xero think it appropriate to hit customers with price increases far ahead of inflation? They of course use the time honoured excuse of "having to fund R&D" but

a) Should this not be a cost incurred by Xero-esp bearing in mind the extensive tax relief available for R&D in the UK?

b) Has anyone noticed any startling improvements in the product in the last year?

We are platinum Partners with Xero but are so angry are considering moving all our Clients to another Platform. 

How do other Practices feel?

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