Xero joins forces with KPMG for UK push

Rod Drury, founder and chief executive of internet-based accounting software company Xero. Photo / Mark MItchell.

Cloud software firm Xero has joined forces with giant KPMG to provide accounting and tax services to small-and-medium-sized businesses in the United Kingdom.

Xero's cloud accounting platform is to be involved in the formation of a new KPMG division which will provide these cloud-services to UK business from May 2014.

"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," said Xero United Kingdom managing director Gary Turner.

"Xero is an impressive software platform, supporting delivery of our services to this segment where technology is increasingly transforming the way we do business," UK chairman of KPMG Simon Collins said.

Xero chief executive Rod Drury was not immediately available for comment on the details of the "strategic alliance".

As at September 30, Xero had annualised committed monthly revenue (ACMR) of $10.2 million from its UK customers, about 14 per cent of the company's total ACMR of $70.6 million.

At that point it had 30,100 paying UK customers. Its total customers as at September 30 was 211,300.