First, PwC has resigned as Xero's auditor. The resignation, effective October 2, enables PwC, which had been the external auditor for the New Zealand-based software company since 2007, to recommend Xero's applications to private businesses. Xero's board of directors have named Ernst & Young as its new external auditor. In its announcement, Xero said the move will enable PwC to recommend Xero's offerings to private businesses.

PwC U.K. also recently entered an alliance to support the very new, cloud-based Sage Live, combining it with the firm's My Financepartner. MyFinancepartner is described as providing an implementation service to SMBs and also a service that combines accounting and compliance with business advice. The alliance was described as starting with a launch in the United Kingdom.

The press release announcing this deal suggests PwC has much bigger plans in supporting Live, which hit the market in August.

"We see considerable potential in this partnership with Sage," Ashley Unwin, PwC UK executive board member and leader of consulting in UK and EMEA said, in a prepared statement. "My Financepartner is one of a range of exciting digital initiatives which our Consulting practice is spearheading to transform our clients and our own business models".