As mentioned in our email, Xero have recently announced they will be increasing the price of a number of their monthly plans, so as a Xero user it is important you are aware of the changes including how it will impact any invoices from CapitalQ and direct debits if you have them in place …
Xero Announcement
Xero announced in July 2018 that prices changes would be coming for Australian subscribers. Their justification for the increases include –
- Continual improvements to features such as reporting, payroll and the mobile app
- Additional regulatory compliance (ie. Single Touch Payroll)
- $250 million spent on R&D since 2016
- Prices have not been adjusted often, but there comes a time when they need to be reviewed to ensure they align with the value delivered.
When do the changes take effect?
The changes take effect from 28 September, 2018 which effectively means for the month of October and moving forward.
Is there some good news?
Yes, if you are on a plan that currently costs $50 per month or less, you WILL NOT be subject to a price increase!
To clarify, this will be businesses who account on a “cash” basis only (which are generally only small, simple businesses) and businesses who have only one employee utilising the payroll function.
So what is the damage for everyone else?
The table provided by Xero (with our mark ups) is below …
As you can see, there is no price change for the $25 and $50 per month plans (nor the Partner Only $11 and $22 per month plans some of our Clients are on which are not shown).
And for Premium 5 and 10 plans the increase is a modest $5.
But for the larger plans (which are primarily used by Clients with large teams of employees) the increases are more significant including a substantial increase of $50 per month for the top, Premium 100, plan!
How will the changes work?
So, if you pay for your own Xero the amount deducted from your Credit Card during the month of October will reflect the new price.
If we cover your Xero and then on-charge you via invoice, or if your Xero is included in an agreed Service Package, our next invoice (likely to be issued in early October) will reflect the increased price.
If we also Direct Debit your account to pay your Xero invoice, the Direct Debit will reflect the new price on the usual date bieng the 10th of the month (October and thereon).
Is there anything you can do?
Well, first things first, check your number of employees, and if you are on a higher plan then you currently need to be, let us know so we can make the change (yes we do our best to monitor that for all Clients, but with team numbers constantly changing for many Clients, we may not catch all scenarios straight away).
Other than that, we are afraid the answer is ‘not really’! Despite the increase, Xero remains by far and away the best small business accounting package in our opinion, and even with an increase in price, the value it brings to your business (and your life) far outweighs the cost.
However, if you have any doubts in that regard, please get in touch and let us know? It is likely we simply haven’t adequately conveyed the real benefits to you, or you need a reminder. But you never know, for one or two Clients, maybe things have changed and alternatives could be worth considering.
