Xero apologises after two incidents upset advisers

Xero has apologised to accountants and bookkeepers after two incidents affected its adviser community, in a response from UK Managing Director Kate Hayward.

One incident involved an influencer who discussed connecting Xero to Claude and said she had saved significant accounting fees. After concerns were raised, Xero removed the post and is tightening controls over its influencer and affiliate relationships.

In a separate issue, some users who had accessed Xero Analytics on their dashboards also received an automated monthly analytics email sent by Xero through Syft. Hayward said the email was sent to users who had accessed the analytics service.

The incidents occurred in close succession and raised concerns among accountants and bookkeepers, particularly because both touched on advisers' role in supporting small business clients. Hayward said the analytics email was not intended to bypass advisers, but acknowledged that established workflows and client relationships may have been disrupted.

Two incidents

On the influencer post, Hayward said the message did not reflect Xero's position and asked the adviser community to direct concerns to the company rather than the individual involved.

"I know this past week has been frustrating for many of you. Many of us at Xero have been saddened by it too: we feel it because we care, and I wanted to say that we're sorry. None of these actions are to try and bypass the critical role advisors play to small business clients. Our strategy has not changed. Our belief in this community has not changed. What this week has done is remind us to be more deliberate, more consistent, and more present in demonstrating that. We will only get it right by listening to you, and working with you," said Hayward.

In a longer message to accountants and bookkeepers, she said the company moved quickly once the post was flagged and is tightening how it manages external promotional relationships.

"As some of you are aware, an influencer talked about connecting Xero to Claude, describing how she saved significant accounting fees. I know many of you saw the post. I responded on LinkedIn as soon as it was raised. We had the post removed as soon as we could, and we're tightening our controls across every influencer and affiliate relationship we have as a direct result of this. The messaging didn't reflect what I and we at Xero believe. I'm sorry it happened. But I'd also gently ask that we direct any concerns about what happened towards Xero, rather than the influencer. Xero owns the process so let that sit with us," said Hayward.

Analytics email

The second issue centred on automated reporting from Xero Analytics via Syft. Hayward said users who had accessed Xero Analytics on their dashboards were among those sent the monthly email.

For accounting practices, the concern was not only that clients received analytics material directly, but that the communication came soon after the influencer controversy. Hayward acknowledged that the timing contributed to concerns among advisers and that existing workflows and client relationships may have been disrupted.

Users can switch off the automated email through the analytics dashboard settings if they want to change the arrangement, Hayward said. She apologised for the disruption caused to practices and their clients.

"Shortly after, some of you discovered that for those users who had accessed Xero Analytics on their dashboards, an automated monthly analytics email from Xero, via Syft, was also sent to those same users. However, I understand why this hurt, especially on top of the influencer messaging that landed just before it. This email was not intended to bypass the role of the advisor and we recognise that you and your clients may have a workflow and relationships that may have been disrupted. If you wish to make changes, the automated email can be toggled off by any user from the analytics dashboard settings. We apologise for any disruption caused to you or your practice," said Hayward.

Partner relations

Xero presented the apology as part of a broader effort to reassure accountants and bookkeepers about their place in its model. Advisers play an important role in supporting small businesses that use accounting software, making the relationship important to Xero.

Hayward said the incidents had prompted reflection inside the company about how it engages with the adviser community. Her comments underlined that Xero still sees advisers as central to its work with small businesses.

"Many of us at Xero have been saddened by what's happened over this last week. We feel it because we care. This is a relationship that has always mattered to us, and will continue to do so.

I want to say something that goes beyond last week. Xero was built to make life easier for small businesses, and their advisors, and that has not changed. We believe in that mission and want to reflect on our engagement with you, especially at a time of so much change and uncertainty. What this week has done is remind us to be more deliberate, more consistent, and more collaborative with you," said Hayward.