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Web-based accounting software company Xero Live says it is on track to hit predicted customer numbers but may fall short on revenue.
A market update released yesterday said more than 500 customers have now signed up to its online system and it is on target to reach 1300 New Zealand customers by the middle of the year.
Chief executive Rod Drury said the company had had a lot of success promoting the system to accountants who are recommending the system to clients as well as providing valuable feedback on enhancements.
"Our market research showed that in 80 per cent of cases where the small business had an accountant it was the accountant that chose the software," said Drury. "We always saw the accountants as a crucial gatekeeper and validator of what we were doing with Xero."
However, with many small businesses reluctant to change systems midway through a financial year - most small businesses have a financial year end of March 31 - revenues are expected to fall up to $300,000 short of the $550,000 forecast when the company listed in June last year.
Drury said entry into the United Kingdom was proceeding faster than expected with founder and chief financial officer Hamish Edwards working over there.
"We expect to have some revenue out of the UK this year which is well ahead of schedule and obviously makes us very proud that very quickly we've become an export company," he said.
Shares in Xero closed yesterday unchanged at 68c, its lowest level since the company listed.
