Xero buys paperless accounting hero Hubdoc
Cloud accounting platform Xero claims that “business has never been so beautiful”. That’s because the New Zealand-based company made its second acquisition, purchasing Hubdoc, an application that helps accountants and bookkeepers capture and maintain documents online, reports Julie Muhn at Finovate.
Xero says the purchase helps them “focus their efforts on making sense of a small business’ financial data – not collecting it”.
Hubdoc will help Xero bolster its machine learning models, serve customers who have no direct data connection, and increase its presence in Canada via Hubdoc’s Toronto roots.
Here’s how the integration of the two technologies works: first, Hubdoc gathers financial documents from 700+ billers, extracts the financial data, and syncs the data into Xero.
Then, Xero matches data imported from Hubdoc with bank feed transactions to keep clients’ books up-to-date. All of this data is verified with the source document, which clients and accountants can search.
The Hubdoc team, which is located in offices across Australia, the UK, and Canada, will work independently on a standalone basis until Xero forms an integration plan. The terms of the acquisition were undisclosed.
Last month, Xero signed an alliance with Gusto, allowing Xero to provide payroll in the US. And earlier this spring, Xero launched Connected Accounting, a set of new features designed to automate daily business tasks.
Founded in 2006, Xero listed on the New Zealand Stock Exchange in 2007 and the Australian Securities Exchange in 2012. The company has raised more than $319 million in funding, including $1.4 million pre-IPO; $10.2 million at its IPO; and follow-on rounds from investors including Peter Thiel, Matrix Capital Management, and Accel Partners. More than one million subscribers in 180+ countries use Xero.