Xero is winding-up its personal accounting product at a cost of $700,000 and will close the service altogether from 30 November.
Chief executive Rod Drury said the company will instead focus its development resources on the core products for small businesses and accountants.
He said Xero is also now working with financial advisers in Australia to assist them in working with wealth management clients using Xero's Cashbook product.
Mr Drury said Xero Personal covered its costs from the start, but it contributed only $600,000 to the $39 million in revenue that Xero reported for the 12 months to the end of March.
Xero Personal users are not included in the company's customer count.