BT is targeting accountants to encourage them to move SME clients on to their online accounting software product, accusing traditional vendors of failing to embrace the new model of delivering products.

The telecoms giant will sell Xero, the online accounting service, to SMEs where they will come up against a raft of other software-as-a-service (SaaS) providers attempting to eat into Sage’s market share.

The market is waiting for Sage to unveil a SaaS product, but it recently suffered problems while beta-testing its ‘Live’ online offering at the beginning of the year.
‘There’s a real change going on and traditional vendors haven’t really embraced online accounting,’ said Chris Lindsay, general manager at BT Business applications.

BT is focusing on accounting practices and networks as a key channel to the SME marketplace.

‘It is a coup for Xero, partnering with the biggest telecoms operator,’ said John Oates, Baker Tilly partner and ICAEW IT faculty chairman.

The service is charged at £19 per a month, and is free on 30-day trial.