It's certainly an interesting situation at the minute, a fair...

It's certainly an interesting situation at the minute, a fair few factors at play for mine, these include:

- Xero at a rich valuation, difficult to analyse on traditional metrics
- The stimulus measures in Australia have made accounting software more important than ever, it appears that government support is conditional upon up to date tax return lodgements, BAS lodgements, ABN registrations etc. Businesses will be looking to engage with single touch payroll very quickly if they haven't already done so.
- In times of recession knowing exactly what your financial position is more important than ever, hence cutting Xero seems unlikely in my view
- Small businesses will have failures, therefore some proportion of Xero files will be lost
- The Australian government's stimulus measures seem to have largely targeted small business
- Accountants are super busy at the minute trying to understand these stimulus measures and advising clients how they apply to them, they will want any clients that haven't already done so to move to the cloud. As an aside they also won't have the time to help clients move from Xero to MYOB or vice versa.
- Then there is the most influential factor of all, how is Xero progressing in the USA.