Yesterday, we were suddenly confronted with a major Xero outage, highlighting the critical importance of POS software reliability and business continuity. As a provider of retail technology solutions, we've seen our share of software hiccups, but this incident underscores the software reliability problem for a mission-critical business system.

What happened was that Xero, for many people, stopped.

One of our users described his situation: "It was like showing up to open my filing cabinet and finding the doors welded shut. I had no financial data." This Xero outage couldn't have been planned at a worse time, as it coincided with month-end accounting and the standard payroll processing day for many businesses.

Cloud Accounting Issues and the Need for Multi-Region Cloud Redundancy

The root cause of this problem appears to be a lack of multi-region cloud redundancy. Reports suggest that a single point of failure in Amazon Web Services' North Virginia region caused the Xero outage. This revelation raises serious questions about cloud service reliability and disaster recovery planning for this software.

POS System Uptime: A Critical Factor for Brick-and-Mortar Businesses

To illustrate the problem of POS system uptime, let's consider a scenario where a system is 99.9% reliable, and the shop uses the internet to use POS cloud, EFTPOS and accounting, so we have

= (1-99.9% reliable) x 6 (days a week) / (7 days a week) x 365 (days a year) x 8 hours x 4 services = 10 hours down annually

If internet connectivity is compromised, all cloud-based services are affected, potentially increasing downtime to around 17 hours per year.

I confess it's more complex. For example, if your shop uses a cheap internet service or you work more than eight hours in the shop, you can increase downtime.

It's not uncommon for me to hear my users telling me that something went down and they had staff sitting around doing nothing because the internet was down somewhere.

The Root of Xero Problem: Cloud Service Redundancy

Here's where things get genuinely mind-boggling. If we hear correctly, a single point of failure in Amazon Web Services' North Virginia region caused the Xero Outage. As someone who's worked in software for years, I'm stunned. The idea that a company as massive as Xero doesn't have robust multi-region redundancy is like discovering your bank keeps all its records in one computer.

This revelation, plus their handling, raises serious questions about their cloud accounting software:

-Why were the users not notified that a problem was happening, e.g., via email? Most found out only after doing a Google search.

-How could they have their service rely on a single region?

-What does this say about Xero's disaster recovery planning?

-Their system is pretty pricy; the price should be reflected in what the user gets.  Our POS cloud solution involves several servers in different locations; if one goes down, the others keep working so our users can keep most of their system processing. That is part of the reason for using the cloud.

Our POS cloud solution employs several servers in different locations. If one goes down, others continue functioning, ensuring our users can maintain most of their system processing. This approach is fundamental to our disaster recovery strategy and exemplifies why cloud computing, when done right, can be beneficial for retail.

Xero status updates

While this article was written, we were notified that Xero resolved the issue. Hopefully, they will provide us with a thorough explanation and a plan to stop it from happening again. If you want current information, check out the Xero status page here for the latest updates on the Xero outage here.

Conclusion: Ensuring Small Business Continuity

Consider this a wake-up call as a stark reminder that we need to be prepared for the unexpected in our increasingly digital world.

The Importance of Accounting Software in Retail

Handling your accounting effectively is vital for store success. Accounting software programs perform critical functions in tracking expenses, invoicing, payroll, and ensuring compliance with tax guidelines.  Today, with the ATO requirements for payroll, it has become a necessity for a business to have such software.

Xero is one of the most popular options among Australian retailers, mainly because of its comprehensive capabilities and cloud interface.

However, for some reason, Xero's recent price increase has raised many complaints, with several wondering about the platform's affordability. I am not sure why this year, as it was last year that the big price rise occurred, yet last year I heard nothing, and today I hear much. Maybe it's been the straw that broke the camel's back for some.

Xero price increase

I decided to investigate, so I went to the Xero website and decided to work on the Premium 5 plan, which is the most popular with my clients. I then used this website to convert the figures into 2024 dollars. 

Then, I made a column for price rise in percentage.

Check the above graph to provide a clearer view of these rate hikes. While the growth from 2021 to 2022 is less than inflation, there was a big leap of 15.44% in 2023. For some reason, this did not raise eyebrows amongst my clients, but in 2024, when faced with another 4.78% increase, I got some enquiries.

Addressing the Rationale Behind the Price Hikes

I have not heard or seen anything from Xero that states the reasons for those fee increases. I do know that it appears that the shareholders on the ASX like them. A company like Xero that can pass the costs on to its users is desirable to its shareholders. Looking at the ASX share price, it appears that the price rise is positive news, and it shows that Xero is a company that can pass on its costs.

Retail accounting software Australia

If you use Xero, the price hikes did upset you. Well, it's unlikely to get better for you next year. There are several others in the marketplace that offer comparable software. Reckon and MYOB are most popular with my clients, both of which, in my experience, can do your business. Our POS software integrates with these accounting software, saving time and effort. 

Most accounting software also offers a free trial to test it out. This should make it easy to examine based on your business needs, ease of use, reporting capabilities, and integration with existing structures. 

Most allow you to switch from Xero to them fairly quickly. However, you will get a copy of your information in Xero and make all relevant reports before stopping your subscription. Once it's cancelled, the data contained within that subscription is archived and held by Xero for 7 years, but you need to pay for access.  Most people who switch run to the end of the financial year and start the new year with another accounting system. 

Conclusion: Prioritising Your Business Needs

Ultimately, it is crucial to evaluate your alternatives cautiously, seek expert advice, and leverage community insights to make an informed choice that aligns with your business desires, budget, and long-term achievement. By prioritizing your specific desires and carefully weighing the pros and cons of diverse accounting software solutions, you can navigate this venture and discover the proper fit for your small retail enterprise. 

In my experience, the most crucial consideration is your ease of use, as most major accounting software in Australia do the same tasks and give the same reports.