Xero hooks up with KPMG
Xero has announced a "strategic alliance" with KPMG in Britain.
Xero said KPMG would set up a new division in Britain to provide online accounting and tax services to small and medium-sized firms, for which Xero's cloud-based accounting software would play a "central role".
It expected the new division would be operating by next month.
"It is very gratifying that an organisation of KPMG's standing selected Xero to be its technology platform partner for their online services, confirming our belief that cloud accounting is fast becoming the default platform for both accounting firms and small businesses," the managing director of Xero's British subsidiary, Gary Turner, said in a joint statement.
The chairman of KPMG's British business, Simon Collins, said in the joint statement that Xero's software was impressive and small and early-stage businesses would form the backbone of future growth in Britain.
About 15 per cent of Xero's total sales in the six months to September were generated in Britain with revenues in the country rising 83 per cent to $4.4m.
Xero shares were trading down 5 cents at $39.95 shortly after the announcement.