Fast-growing cloud accounting software company Xero has signed a strategic partnership arrangement with US cloud computing giant Dropbox which will see the two businesses combine aspects of their products to lure more small business customers from rivals.

The partnership will essentially allow users of Dropbox storage to share documents directly from their personal or business accounts with their accounting systems. It is an important partnership for both companies, as Xero seeks to prove it is the most user friendly software for accountants in competition with the likes of MYOB, Reckon and Intuit, and Dropbox attempts to lure more local users off its free consumer product and on to its paid business services.

As part of the deal Dropbox for Business has signed on as the major sponsor of Xero’s Xerocon 2015 user conference in Melbourne in August, during which it will look to showcase the extent of the collaboration between the companies and convince more small businesses to look beyond its free service.

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