11 Nov 2010

Accounting software firms targets US market

5:11 pm on 11 November 2010

Online accounting software company Xero is gearing up to enter the American market, starting in San Francisco.

The growing Wellington-based firm lost $4.7 million in the six months to September, 25% more than the same period last year.

Costs jumped as its workforce grew past 100, but revenue tripled to $3.7 million as it continued to build up its customer base, which now stands at 27,000.

Xero chief executive Rod Drury says getting New Zealand accountants using its software has been important in boosting sales.

But Mr Drury says that in places such as Britain and the United States, it is working in partnership with other firms to access the fragmented small-business market.

Mr Drury says Xero will break even in the second half of next year.

Xero's shares rose 11c to $1.93.