12 Feb 2014

MYOB urges clients to look to clouds

6:55 am on 12 February 2014

Accounting software company MYOB is spending millions of dollars launching new products this year as it tries to push more of its clients from desktop to cloud-based solutions.

The Australasian company has about two thirds of the market, with 1.2 million business clients and 10,000 accountancy and consulting practices across the two countries.

But it is facing new competition as companies such as Xero aggressively push for a bigger stake of the market.

MYOB unveiled its new mobile and cloud-based products in Auckland on Tuesday as part of its 2014 roadshow, where chief executive Tim Reed said about half of new clients are choosing cloud accounting over desktop but less than a quarter of existing clients had switched.

Businesses needed to adopt the new technology to save time and money, he said.

MYOB had been operating in the New Zealand market for 20 years, and in that time had cornered more than 60 percent of the market.

However, that still left more than a third of businesses that had not yet made the move and did not have an accounting solution in place, Mr Reed said.