The young Start-up, Xencio GmbH, pitched their version for the future of accounting at the Demo Day of TheVentury (marking the end of a six-month-long Accelerator program they participated in). Xencio aims to change the mindset of Small and Medium-sized Enterprises (“SMEs”) towards their accounting tasks.
Accounting usually proves to be a hurdle for a majority of SME owners/managers, who do not have an accounting background or an accounting team, whereas accounting programs like BI tools require a good accounting system and knowledge as a prerequisite.
Many SME founders would rather focus on their product but often feel held back by manual time absorbing accounting tasks, viewing them mainly as legal compliance that has to be met. John Shen, the founder of Xencio GmbH, knows that much more value can be extracted from a business’s accounts. The main value of a business’s accounts is not merely to find out how much tax it is required to pay. It provides the opportunity for analysis that can lead to businesses making better strategic decisions.
Thanks for the new implemented Open Banking regulation within the EU, Xencio’s software is able to directly access the banking transactions of SMEs. Xencio’s virtual CFO is then able to automatically carry out analytics based on the cash flow of the business. This functionality, enables business owners and managers to keep track of the performance of their business in real-time, and to automate the process. All this is possible, without scanning invoices or learning how to use a new accounting program.
SMEs are able to minimize the time spent on manual repetitive accounting when using the virtual CFO. The real-time advising tool is already used by dozens of SMEs in Austria and by the end of 2019 Xencio aims to have thousands of SME Free Active Users using its various services. Approximately, 10% of the active users are expected to pay for the premium version of the services on offer and become paying customers.
The paying users will have access to more advanced product features such as advanced forecasting and liquidity planning. The Start-up’s goal is to serve their customers as best as possible by analyzing and focusing on their central needs and implementing them within their software.
Interested SMEs are able to sign up for free trial accounts by getting in touch with the Xencio team through their website.
