[ilamont]

Xero’s unique selling point is its slick and simple user interface

This worked for Mint. I am less confident it will work for Xero, even though many startups/small businesses (myself included) want an alternative to Quickbooks.

The article didn't mention this, but one of the most important selling points is not how it looks to SMBs, but whether or not banks and accountants will work with it. I remember reading somewhere that 90% of small business accountants integrate with Quickbook files or Quickbooks Online. Getting accountants to start using a new system will be a tough sell, especially if only a small number of early adopter clients are there to begin with.

While it may be possible to encourage SMBs to switch to Xero-based banks or accountants, that's a large step for some. I use a neighborhood bank for business banking services (augmented by Dwolla) and a local accountant team that is pretty sharp. Switching is not only a PITA, there's also the risk that a new bank and accountant may be lacking in other areas, even if they support Xero.

[lancewiggs]

You've identified the issue around transition. It's not good enough to be simply better, it has to be great for the accountant and the transition has to be easy.

Xero figured it out - although it 2-3 years after they launched (they are now 7 years old). Their key to paid customer growth is not the UI (which is great) but that they focus on helping accountants improve the way they do business with their clients. Their marketing focuses on the accountants, and includes extensive training and so on, and they offer free practise management software. It changes the relationship accountants have with their clients and creates evangelists.

To help in the US Xero has just launched a Quickbooks --> Xero tool.

Of not for HN is the comprehensive and rapidly growing ecosystem of add-ons and complementary cloud products, many out of NZ, but many (more?) from offshore. It's a very fast growing area with a lot of opportunity.

[ghiculescu]

More info on the conversion tool:

http://www.xero.com/au/convert

http://help.xero.com/Help/resources/QBXeroConversion.htm

[jacques_chester]

I use Xero.

I showed it to my accountant and we now regularly use it to cooperate on my accounting. I don't have to bring a MYOB file in to her, I just send her an email with a question and she can log in to look at my books.

She's now recommending it to her other clients.

(n=1)

[ipmb]

I had a similar experience. My accountant had never heard of Xero. I sent her a login and she was quickly using the system without a problem. For me, they've nailed making a system that is easy to use without being an accountant, but powerful enough for an accountant to do their job.

[prawn]

I use it also, having come from the awful world of MYOB. Xero, by comparison, is a dream. Account reconciliation is almost fun and I can get through a lot of invoices very quickly.

[r0h1n]

In India, where penetration of tech among SMBs is abysmally low (and is also a massive opportunity), cloud based accounting software is distrusted because it is transparent, rules-based and off-premise

To avoid taxes, most businesses fudge their accounts. Many maintain two sets of accounts - one for the tax officials and another one for the owners. Thus there is a premium on keeping data within premises and in silos.

[brentm]

The "slick and simple user interface" stops with their marketing site in my opinion. I used it for about 3-4 months but had to switch to Quickbooks Online and I can't stand Intuit. I actually find QBO to be better designed & easier to use.

[rrhyne]

We work with businesses in QuickBooks very often. We can't even get them to switch out of the crazy processes they've created because they didn't understand the program when they set it up, much less to another platform.

[ihsw]

As someone looking to get into developing around Quickbooks (Desktop & Online), this terrifies the hell out of me.

[rrhyne]

You should be afraid. Everyone uses it differently, there are lots of opaque quirks to development and Intuit does wild things like kill their support forums without leaving the old content up for posterity's sake.

There are 2 or 3 different APIs, with verifying levels of support for various features. At times QB will push a release that breaks everything for all your clients and you're left to deal with it.

Not a fun time. edit(spelling)

[ruckusing]

I wish I could +1 this a million times. I develop a Ruby gem for the QB API (Online & Desktop)[1] and I've come to realize their whole API is a mess. I've also worked with the Xero API and its much simpler but still lacks some key features like adding a discount to a line item on an invoice.

[1] https://github.com/ruckus/quickeebooks

[rrhyne]

A brother in arms!