Australian accountants who use Xero pm / Tax love the efficiency...

Australian accountants who use Xero pm / Tax love the efficiency of combined client ledger Xero tax provides their practices. It's so much more efficient than the MYOB offering.

Xero is consolidating accountant only product lines to just 2. This will force many small businesses to use a higher price retail version as GST will no longer be offered in accountant only products for new subscribers.

At the last report 2/3 of subscriptions or thereabouts were via the accountants. Possibly the high accountant discount (15%+) percent was driving this. Xero has reduced this discount to 5% for new accountants joining the program. Xero wins with effectively high subscription rates without a pricing increase.

Xero's pricing power is being driven with some smart pricing strategies. Competitors may price below Xero to capture some churn, but as I have previously mentioned cost savings on monthly subs may get burnt up in higher accountant fees. And the network effect means new finance staff have almost always had Xero experience.