Xero recently announced changes to their pricing plans in New Zealand.
These changes take effect on 1st December, 2015.
Why is Xero making changes?
The functionality in Xero has increased markedly in the last two years. Xero believe that prices no longer reflect the strength of their software.
Some of the enhancements that have brought real value for business include:
- the ability to receive direct invoices from companies like Z Energy, the Warehouse and Meridian Energy.
- partnerships with Microsoft, Google, Dropbox and Apple.
You can read the Frequently Asked Questions relating to the changes by clicking here.
So how does this effect you?
If you are on a Generate monthly package, we won’t pass on the increased cost until April, 2015. We undertake in writing to revue charges for our monthly package clients annually in March so we thought we should give you as much notice as possible.
In the meantime, we’ll absorb any cost increase.
A few clients still prefer to pay on a time and cost basis. We will pass on the Xero increase directly to you in December.
What are the new package prices?
Starter package was $25 – new price $27.50.
Standard package was $50 – new price $55.00.
Premium package remains at $70.00.
What’s Xero planning in the near future?
Xero is teaming up with Paymark to eliminate paper EFTPOS and credit card receipts in New Zealand.
They have announced a new partnership with Veda to create a new business directory to search and verify business credit and contact records within the Xero platform.
Invoice reminders are coming soon which will enable you to set parameters to automatically remind some of your tardier customers that their account is overdue.
There is also going to be a comprehensive change to the dashboard to measure KPIs more effectively.
That’s just a few of the changes. You can read more about the roadmap by clicking here.
What is our view?
No one likes price increases but if they are justified we can stomach them.
On balance, we feel that the value that Xero brings to small to medium businesses coupled with the genuine increase in functionality does mean that Xero continues to offer excellent value for money when compared with alternative solutions.
Copyright © 2015 Generate Accounting Group Limited, All rights reserved.