NZ tax toolbox app
We always get a kick out of Xero Partners getting innovative with technology. It’s something we’ve come to expect from developers, but it’s less common among accountants.
So it was great to see Brad Golchin of Wise Advice launch a tax app that can help New Zealand businesses avoid late tax payment penalties and wrong calculations. Brad claims the Tax Toolbox is the only iPhone app in the NZ market which offers GST, PAYE and income tax calculators, plus due date reminders for each.
The app took seven months from concept to launch and is described by Brad as a “good learning experience”.
He recommends the free app to all NZ iPhone owners who have a business interest and need information on the move. “It’s also a great tool to have at your fingertips when interviewing prospective employees or talking pay rises with existing staff or changing tax codes and working out the financial implications on your business.”
Brad’s already planning the next app – an Android version of the same.
The Tax Toolbox is available to download from the iTunes App Store. Judging by the comments it’s already hit.
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Super-connected cities
The UK Government’s CFO (George Osborne, full job title Chancellor of the Exchequer) today announced some interesting proposals around designating ten UK cities as internet broadband mega-cities, which will guarantee 80-100 megabits per second wired connections as well as citywide high speed mobile connectivity. The UK already has £830M set aside in this parliament for broadband improvements, the extra £100M almost rounds the UK up to a neat £1Bn investment in improving internet communications.
Personally, I’d just be grateful to be out of the single digits – my home broadband has actually gotten slower, not faster, in the five or so years I’ve had it – and today it crawls along barely above one megabit like some snail on Mogadon.
I’m not sure if it exists, but I’d love to see a chart showing various countries GDP stats and along with their average national broadband speed – if there isn’t a correlation, I imagine there soon will be.
Update (from Rod)
Gary I couldn’t resist posting my speed test result from my shed in the colonies.
Unfortunately in New Zealand our international connections let us down so Fibre to the Home doesn’t feel any faster than good ADSL+.
(UK people wanting to experience fibre and mountain biking after work we do have jobs available in NZ http://xero.com/careers)
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Hello Scotland
Confession time.
I spent the first ten or so years of my accounting software career in Scotland and relocated to England in 2001. But today I bear a newfound sense of shame at having abandoned the country of my birth. It crystallised uncomfortably last Friday when I stepped off the train to visit a Xero Partner in Edinburgh and calculated that at least ten years had passed since I last set foot in Scotland’s capital city – and at least a two years since I visited Scotland on business.
Ouch.
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Catch my continental drift
In London last week I attended an excellent lecture given by Professor Richard Dawkins, the renowned evolutionary biologist. It seems that regardless of what I’m reading or listening to, I can’t help but eventually transpose its meaning to technology. Even if it makes no sense. And sitting in the grandeur of London’s Royal Albert Hall hearing about Darwinist theories of evolution was much more than I’d usually need to set me off.
So, buckle up…!
About ten years ago I spent a day in a hotel room at London’s Heathrow Airport secretly evaluating a market leading european accounting software product to scope out the viability of bringing it to the UK. That proposed deal died a death principally because the user interface and software design workflows were so alien to my British accounting software brain that I was convinced that it would never be accepted in the UK without a lot of costly UI rework which would have fundamentally broken the application. The odd thing was that the UI of that product was deemed to be the best in class in its home country and had been copied by all its native competitors over time. I didn’t get it.
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Shifts
UPDATE : A couple of days after this post, HP lurched into yet another crisis and fired its CEO, Leo Apotheker, replacing him with former eBay CEO, Meg Whitman.
I was in Utah last weekend attending a friend’s wedding when by chance I found myself outside the offices of Novell. The onetime biggest network operating system company in the world still trades today but it’s moved on to other areas after conceding the server war to Microsoft. Seeing that old Novell logo on the side of an office building in 2011 felt way out of context in today’s tablet, web and smartphone world and it got me thinking about technology shifts.
Today’s shifts are bigger than ever because technology has crept into so many aspects of our personal and working lives compared with back in Novell’s old glory days in the 80’s and 90’s.
Back in 1990 it took Microsoft six months to shift the first two million licenses of Windows 3 – and that was deemed to be a huge success. In its first six months a hundred million licenses of Windows 7 were sold.
Last month Google reported that it is now activating more than half a million Android devices a day and even this week upon unveiling its first developer preview of Windows 8, Microsoft reported that over half a million copies were downloaded by eager developers in the first 24 hours. These numbers tell a story that while the microprocessor revolution might have began life in an obscure, funky branch of the office automation world – today its influence is felt literally everywhere.
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Windows 8 – Microsoft pins hopes on web devs
This week Microsoft launched the developer preview of its next operating system, cunningly called Windows 8.
With this release Microsoft is taking a big gamble on reshaping the Windows landscape toward its Metro User Interface – the interface they built for Windows Phone 7.
Today I spent a few hours playing around with the developer preview (I had to check that Xero worked). I’ve taken it through some pretty simple tasks, and bear in mind I’m not using it on native or touch sensitive hardware which would show off some of the more significant differences with Windows 8. Here’s my take.

Personally I love the Metro UI and I’m glad to see someone move away from the icon metaphor that desktops have been religiously sticking to for decades – all the while trying to invent something that’s actually new. Having said that there are times when it’s a bit jarring moving between classic Windows UI screens and the Metro screens.
JavaScript and HTML are first class citizens for Metro which is an amazing play by Microsoft. You can still write applications in C# and C++ but the APIs are all exposed to JavaScript applications too. I’m still not sure how many converts Microsoft will have from web dev to the windows dev, but this release firmly positions the OS closer to the cloud and web enabled applications than ever before (you can just feel the influence that ChromeOS has had on this decision).
The OS is designed for a connected world – most of the elements in the touch interface need a connection of some kind with Microsoft Live accounts built right in. And the experience is significantly better with an always-on internet connection. Windows 8 also masks the differences between standard networking and 3G etc, so it’s a lot easier for developers to make use of any internet connection the machine has. Hence Microsoft is firmly putting its foot into cloud connected platforms.
There’s still a mismatch between Touch and Keyboard/Mouse. I don’t have a touch enabled laptop or PC or tablet, and as such I’m relying solely on my mouse. This can be seriously cumbersome at times but I suspect we’ll see a wave of new hardware with the release of the OS.
All in all I think Windows 8 is looking very promising, but only time will tell.
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Disruptive
I was lucky enough to be invited to spend half a day at TechCrunch Disrupt 2011, wandering around the Startup Alley, listening to the Battlefield and selling Xero (all of these startups should be using Xero right?).
TechCrunch Disrupt is a three-day conference and startup competition targeting very early ventures as well as a gathering of industry leaders and innovators, providing deep insights into what’s happening in the industry right now and what’s coming up in the future. The main event at TechCrunch Disrupt is the Disrupt Battlefield, which is essentially a launch competition for early-stage startups – they have to be live for fewer than 3 months, and less than 2 years old. Most of the companies at the Battlefield were actually going live at Disrupt. It’s huge for them – Disrupt competitors get a massive amount of PR just by being on stage. If you’re building a startup and want to launch in the US then TechCrunch Disrupt is the place to do it.
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When cloud is not the same as cloud
The other day I saw a great post about some of the myths regarding the cloud. While all of these myths relate perfectly to Xero, I think there is still a fundamental question about what makes an accounting solution cloud-based. I don’t think it’s enough anymore to just be online – online is only part of the story.
It’s very easy to get online nowadays. If you have an existing desktop accounting product, then the easiest solution is to host that product using technologies such as Citrix or Terminal Services and for secure access use a VPN. This will get your desktop application online and available almost anywhere, anytime. There’s even a Citrix app for the iPad!
The next approach moves you closer to what I consider the cloud. Most desktop accounting systems utilize some form of database. By pushing the database into the cloud, but retaining the front-end on the desktop, you can get to that next utopia of the cloud, where multiple users can access the same data at the same time from anywhere. Ironically this doesn’t give you online anytime/anywhere access – you still need to host the desktop product behind some kind of Citrix system to get that – but at least the data is in the cloud.
This is the approach that MYOB has been undertaking for the last couple of years with their AccountRight in the Cloud product. By utilizing the Microsoft Azure platform and the Microsoft Sync Framework, they’re developing a solution that will enable a local database to connect to a cloud database, keeping the data in the cloud as up-to-date as possible for other users to connect too. This enables them to keep their existing desktop product going (and to protect their existing installed market).
I’ve seen some presentations on their approach and from a architectural standpoint it’s extremely impressive. But conceptually it’s completely broken.
We see the first stage of the cloud is definitely the “going online” strategy. This should get you multi-user, anywhere, anytime. With our focus on accounting we call this the Single Ledger – removing the friction that currently exists by connecting business owners with their financial advisors.
The next stage is to leverage being connected. We did this from day 1 with our bank feed connections to bank accounts. Recently we announced support for over 5000 bank feeds worldwide. This is a complete business process shift for small business owners – allowing them to do a little bit of work every day to keep their data up-to-date. We’re also able to grab data from XE.com to provide real-time multi-currency solutions – a high value feature missing from desktop systems due to the inherent nature of needing to be connected to an expensive, external data source.
At this point we start to see the MYOB approach completely break down. Instead of just pushing the database up into the cloud, we utilize a fully relational multi-tenanted data model. The benefits to this are immediate and huge:
- we have a version-less modern web user interface (constantly updated to improve features and to release new ones) and a slick mobile interface
- we can enable electronic data interchange through the use of our public API or by connecting existing Xero customers to each other enabling Xero-2-Xero transactions (no touch EDI all contained within the Xero ecosystem)
- we can allow you to access multiple organizations with the same login
- we can build customer portals so that our customers can connect to their customers
- we can enable bill payments
I think the API is the big one – it’s not enough to be able to fetch data (bank feeds and currency feeds) but for data to be fetched – for your accounting product to be programmable from the web. We can see this with the amazing software partners we have – best of breed applications working together as tightly integrated suites with Xero becoming the programmable accounting engine.
And then there’s the next phase. Building value into the platform and empowering our customers. We’ve seen this most recently with the announcement of reporting packs in the latest Xero update. By utilizing reporting codes accounting practices can leverage the power of the single ledger across the entire practice – enabling financial advisors to connect to sets of clients all at once. The reporting codes abstraction is completely enabled by our multi-tenanted data model. From there we can build benchmarking across the whole database – as we build critical mass we can answer very important questions such as “how successful is my business?”. The aggregation of the data is powerful – and completely missing from MYOB’s approach.
With that power comes great responsibility which is why we believe that if you write business software that’s truly in the cloud then you’re no longer a software business – you’re the custodians of data, with all the trust that comes with that.
What I’m not trying to do here is redefine or even define the cloud. The cloud is many things – but one thing is for sure, being online is not enough.
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App Store: a loophole in the infinite loop?
Two months ago we submitted Xero Touch, our iPhone app, to the App Store. After five weeks we got the disappointing response that the app was rejected.
Pay to play
Like every other iPhone app, we provided a way for people to signup from the app itself. However, Apple insisted we must use Apple’s in-app payments if we wanted people to signup from the app. Funny thing is, that’s not possible – their in-app payments can’t handle a subscription service like ours with upgrades, downgrades and volume discounts.
Beyond the billing mechanics, the pricing model for subscription software – 30% of lifetime revenue – is not an option. We can accept paying a one-off bounty for each signup, because that’s the value the app store delivers.
No sampling the merchandise
And anyway, our signup is free. People don’t have to pay to use a trial of Xero. Hence, Apple’s other policy – no trial versions. Apple says “Your website is the best place to provide demos, trial versions, ….” Except Apple then bans developers from that too “It’s not appropriate to include the link of your web service and references of the link in your app or your marketing text.”
After weeks of waiting and cryptic emails from Apple, we ended up on the phone with our judge & jury: a guy called Steve from Cupertino (alas, not the Steve). In a two minute phone call the ambiguities of written policies was cleared. If we removed the ability to signup from within the app we would get official approval, which we did and you can now get the Xero app here.

Straight to the top
It’s great to finally have our app in the App Store. Almost immediately we were featured at the top of the ranks. It’s been very popular. Which makes it really frustrating that people who discover the app can’t just try it out immediately. And it’s beyond frustrating that we’re forbidden from telling people how they can get a free login so they can try it out.
Double standards?
It’s unclear whether Apple is reviewing and rejecting all existing apps that have in-app signups and demos. There’s more than a few that we know about – Quickbooks Mobile is a perfect example – that don’t comply with this policy.

It’s worth noting the Quickbooks app released an approved update the same week our app was rejected.
We’d love to hear from other people who’ve had to deal with this or similar issues. Is there a loophole or a workaround that we haven’t discovered?
Read more about Technology, Design, Mobile
Xero Touch – accounting app for mobile
Xero Touch, our mobile app, is now available for free in the App Store.
This is the same accounting app for iPhone, iPad and iPod Touch that’s also available when you login at m.xero.com. However, there are a few big advantages that come with installing the official iPhone version:
- Take photos of receipts and attach them directly to your expenses
- Use a 4 digit passcode to login quickly
- It runs faster, because the app is stored on your phone
We put together a fun video to illustrate some of the useful features of the app…
A lot of thought went into the design of our iPhone accounting app, focusing on ways to streamline the mobile experience: Quickly check your balances, quickly draft invoices with a few taps – even approve & send invoices straight from your phone, add expenses just by taking a photo of a receipt, tap to call customers & quickly add contact notes.
We think you’ll find it’s very smooth & snappy.
We also made the accounting app available on the iPad so you can get the same streamlined experience on the bigger screen. As always, you can still use the full version of Xero from your iPad (which we plan to make a bit more touch friendly).

Even though Xero Touch is available in the App Store, under the hood it’s running our standard HTML5 mobile web app. A big advantage of being a web app is that the data on your phone and the data in your accounting system are always in sync.
It was a slight ordeal getting the app thru Apple’s notorious approval process, but that’s a story for another day. With the iPhone version now approved our team is working hard on getting a version into the Google Android app store.
Let us know how Xero Touch is changing the way you do business. And be sure to leave a recommendation on the App Store. As always, let us know what other features you think would be useful.




