Xero : 04/05/2021 - Formations selects Xero as preferred accounting solution to support financial management among self-employed

MEDIA RELEASE

Formations selects Xero as preferred accounting solution to support

financial management among self-employed

Xero platform helps power flexible, tech solution for Formations' clients

Denver - May 4, 2021 -Xero, the global small business platform, today announced that Formations, a financial management solution for full-timeself-employed workers and Xero platinum partner, has chosen Xero as its preferred cloud accounting solution provider.

Formations helps self-employed workers establish and maintain their business as an S-Corporation, recognized as one of the most tax-efficient structures for the self-employed workforce. With Formations, users can save thousands of dollars every year on taxes, gain access to corporate level benefits like health insurance and 401K and enjoy the benefits of a steady paycheck.

Xero's cloud-based accounting platform serves as the backend infrastructure for Formations to support its clients. Using Formations, self-employed workers can achieve better financial stability and gain real-time insight and recommendations on financial decisions to guide their businesses.

"The entire financial industry is going through a digital revolution moving to almost entirely digital activity. Payments, banking, money transfers, and even micro-transfers are being digitized," said Shahar Plinner, CEO, Formations. "Businesses that will not adjust their back office and update their structure to work digitally and adopt cloud-based tax and accounting will have a hard time finding service providers and will struggle financially. Xero seamlessly connects our customers' bank accounts to help automate the bookkeeping and compliance process and provides the most up to date information about the business financials."

When evaluating accounting soware, Formations selected Xero for its flexible and open API and rules engine. Bank reconciliation in Xero helps minimize work for clients and creates a hands-free data entry environment. As a tax solutions company, Formations needed technology that would enable them to show their clients' tax position on a regular basis, and Xero helps provide clients with a complete view of their finances. This empowers Formations to focus their time on delivering greater advisory services to clients such as providing tailored insights and strategy that will further assist them in achieving financial goals.

"Throughout the COVID-19 pandemic, many solopreneurs and self-employed workers have seen an opportunity to adapt to changing market conditions and turn their side hustle into the main hustle," said Ben Richmond, US Country Manager at Xero. "We know this is one of the fastest growing segments in the workforce and expect this trend to accelerate in years to come. We're proud to work alongside Formations to help self-employed workers access the benefits of Xero so they can run their

business from anywhere, understand their cash position and get the guidance they need to achieve their financial goals."

Learn more hereabout how Formations and Xero can provide a holistic financial management solution for the self-employed.

ENDS

Media Contact

Xero Americas

Lauren Kido [e-mail]

About Xero

Xerois a cloud-based accounting soware platform for small businesses with 2.45 million subscribers globally. Through Xero, small business owners and their advisors have access to real-time financial data any time, anywhere and on any device. Xero offers an ecosystem of over 800 third-party apps and 200 plus connections to banks and other financial partners. In 2020 and 2021, Xero was included in the Bloomberg Gender-Equality Index and in 2020, Xero was recognized by IDC MarketScapeas a leader in its worldwide SaaS and cloud-enabled small business finance and accounting applications vendor assessment.

About Formations

Formations, a FinTech startup, offers full-timeself-employed professionals a complete financial management solution to maximize the financial potential of their business and improve their financial wellbeing. Formations automates the creation and ongoing management of S-Corp, the most tax-efficient structure for small businesses to operate as a corporate entity. Using Formations, self-employed individuals can improve their financial stability (and save thousands of dollars on taxes), get real-time insights and recommendations on financial decisions, connect live with a certified bookkeeper and CPA, and gain access to Fortune 500-level benefits like health insurance and 401K.