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Anna Curzon announcing Xero Go at Xerocon 2022
AccountingWEB_Xero

Xero takes aim at the sole trader market with Xero Go app

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Xero Go, a new freemium mobile app from Xero, offers sole traders access to entry-level accounting functionality and their advisers access to client information via a new partnership programme.

20th Jul 2022
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Launched at Xerocon 2022, Xero Go is free to download with expense tracking, simple reporting functionality and an ability to connect to accountants included. Optional paid add-ons will be available to expand the app’s functionality, starting with invoicing.

The app is available to download today as an early release via Apple’s iOS mobile operating system, with functionality such as bank feeds and an Android version to be released later this year.

Users can capture expenses using the Quickscan feature, which extracts information from receipts, imports them into Xero Go and uses machine learning to auto-suggest tax categories for them.

For an additional £4.99 per month, subscribers can also create, send and track customisable invoices – including customer reminders for late payments – and add Stripe payments to invoices to streamline invoice management and get paid faster.

To coincide with the launch, the developer also announced the Xero Go Partner Plan, an edition for accountants and bookkeepers that hosts the financial data they need to service clients using the app that allows them to receive tax-coded financial data and income data pulled from invoices.

Unlike Xero's full-fat 'Starter' plan, Xero Go does not have any VAT inclusions, bills, quotes or recurring invoicing.

Xero will offer a free trial of Xero Go until the end of FY23 on the 31st of March 2023. The Go Partner Plan will then become a monthly £4 subscription.

Self-employed businesses

“This is a product that caters to the entry-level accounting needs of the self-employed,” said Anna Curzon, chief product officer at Xero. “We wanted to offer early access to a product that caters to the basic accounting needs of self-employed businesses in the UK. Xero Go helps businesses streamline the manual, time-consuming elements of being self-employed, while also providing accountants with accurate, clean financial data they need to service these clients.”

The UK’s sole trader population currently stands at around 2.6m, with many likely to be pulled into the Making Tax Digital for income tax self assessment (MTD ITSA) regime in 2024. Commenting on Twitter, Australian accountant Heather Smith said that the move to target the UK’s large microbusiness community was expected, with sole traders often too small to justify a standard Xero licence.

Xero is currently running an MTD ITSA beta programme and was recently added to the “software available now” section of HMRC’s MTD compatible software list. Xero’s pilot programme is available to accountants and bookkeepers with eligible clients.

Xero’s managing director, UK and EMEA, Alex von Schirmeister, said: “With MTD for ITSA also coming soon, we want to support our accountants and bookkeepers by removing the time-consuming workload associated with its increased reporting requirements, so they can work smarter, not harder, to help their customers prepare. Accountants and bookkeepers can remain compliant while focusing on what they value the most: providing the best service and experience they can for their clients.”

More information and prices are available on the Xero Go homepage

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Replies (23)

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By Paul Crowley
20th Jul 2022 12:49

Xero would probably be better off learning the property and letting stuff
No idea why this thing exists if proper software is available
I sure as heck do not want clients producing jumbled reports with decisions made by software

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Replying to Paul Crowley:
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By Hugo Fair
20th Jul 2022 20:09

Why?
It's a newly discovered book by Enid Blyton: "Noddy Writes an App".

Thanks (3)
FT
By FirstTab
20th Jul 2022 12:55

All iPhones in the background.

Xero does not like Android phone users?

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Replying to FirstTab:
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By Matt1999
20th Jul 2022 14:01

The article says that the Android version will be out later in the year.

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Replying to Matt1999:
FT
By FirstTab
20th Jul 2022 18:22

Welcome to Accounting Web. You joined today. A fresh member.

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Replying to Matt1999:
FT
By FirstTab
20th Jul 2022 18:24

Awesome.

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Replying to FirstTab:
By ireallyshouldknowthisbut
20th Jul 2022 14:02

I think they assume Android users are not going to get caught by sales hype.

Or they would be iphone users.

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Replying to ireallyshouldknowthisbut:
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By Hugo Fair
20th Jul 2022 20:11

And their target market is people with more money than sense.

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By Winnie Wiggleroom
20th Jul 2022 16:09

I notice the partner plan says "free until April 2023" I am more interested in what happens after that

Thanks (7)
Replying to Winnie Wiggleroom:
Tom Herbert
By Tom Herbert
20th Jul 2022 23:04

Thanks for the query WW - I've updated the article with the answer Xero sent over :-)

Thanks (3)
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By Self-Employed and Happy
21st Jul 2022 09:27

This will be exactly like Quickbooks "Self-Employed" subscription a few years ago, it was utterly crap and completely unusable.

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By listerramjet
21st Jul 2022 09:50

oops. This is a classic mistake. Xero does not compete on price. It offers a premium "value" proposition. So why would it start to compete on price?
There are a lot of businesses in the space Xero targets. Converting them with a "free" offering might sound appealing, but it is unlikely to offer much more, and actually they are competing with themselves. And they also open up the question of value. Xero is priced at a premium to most of its competition, and well marketed. But if a start up or existing business has been dragged kicking and screaming to a "proper" accounting solution - maybe because of MTD or other regulation like VAT - the price is an issue and they might be tempted to one of the cheaper alternatives that does offer some of the missing functionality in the free version of Xero.

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Pile of Stones
By Beach Accountancy
21st Jul 2022 10:07

So why would you pay for this very limited functionality where there are genuinely free / low cost apps that do it better?

I like Xero, but I wish they'd concentrate on the core product for a bit (and don't get me started on the year end accounting stuff)

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By johnjenkins
21st Jul 2022 10:43

Just had a former client who went to a "xero expert" come back to me as it was costing him a fortune. It probably wasn't, but like sage it's not good for the smaller business. I was actually in two minds to take him back on but he was a good client and we've now got him on VT.

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FT
By FirstTab
21st Jul 2022 11:05

I intend to attend Xero's next sales conference. I want to see what has changed since I last went many many years ago. I have a lot to catch up on. I missed so much awesomeness.

I felt so much out of place last time. It just was not me. I will see if it is still a happy-clappy Xero sales conference.

If you are a recent attendee, please provide feedback. Shall I save my money and not go?

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Replying to FirstTab:
ghm
By TaxTeddy
21st Jul 2022 12:25

I can do no better than quote from Alan Partridge :

Lynn : "Who has upset you now Alan?"

Alan : "People"

I fear this will be your experience. I can't even read about Xerocon without cringing.

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Replying to FirstTab:
Glenn Martin
By Glenn Martin
21st Jul 2022 15:01

I will certainly go next time if you are going FT. It would be great to catch up. I will talk slower this time I promise.

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Replying to Glennzy:
FT
By FirstTab
21st Jul 2022 15:33

I hope Xero will offer heavily discounted tickets to accountants who sell their software.

They are getting away with charging their salespeople (accountants).

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By Duffer56
21st Jul 2022 11:29

I have been a Xero only practice for over 7 years but I have noticed a significant decline in Xero's functionality over the past year or so.
Industry standard reports are being redesigned so that they may look prettier but they lose the integrity of accounting documents.
There are increasing numbers of complaints from advisors on social media platforms highlighting that Xero's focus has shifted to pretty bells and whistles but the design flaws and numerous issues are making it far more difficult for those of us who use it day in day out.

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Replying to Duffer56:
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By Self-Employed and Happy
21st Jul 2022 13:29

As a Quickbooks only (bar one Xero client) practice we've noticed some things slipping, as you say bells and whistles that actually make our work less efficient, which is odd when in fairness as agents we are the "sales force" in effect, in addition we provide a buffer between client and the software provider with all the trouble shooting / training etc.

In fairness to QBs they have changed a few things I moaned out constantly via feedback but there is still a long list of things that have changed for the worse from an accountants perspective.

If they just concentrated on making the accountants happy then they would have to worry about subscriptions as they would organically follow.

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Mark Lee headshot 2023
By Mark Lee
21st Jul 2022 18:35

Wondering how this compares with Coconut (which was created for sole traders)

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Replying to bookmarklee:
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By Hugo Fair
22nd Jul 2022 12:39

You don't have to throw balls at it in order to 'win a prize'?

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By MissAccounting
22nd Jul 2022 09:33

The funny thing is I bet this pile of crap got a standing ovation from the Xero cult at Xerocon!

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