You can expect to hear a lot about the accounting software called “Xero” in the near future. This cloud-based program has been adopted by businesses of all sizes over the last several years. The software helps users organize and execute standard bookkeeping and accounting functions. Xero has more than 1.3 million users all over the world.
Many people are uncertain as to whether they should use Xero. Whether the software will be useful to you or not will be contingent on your company’s needs. Our company’s accounting team has extensive experience with Xero. This article endeavors to provide you with some highlights of this program from their perspective. It is worthwhile to understand the advantages and disadvantages of any software before committing to a purchase.
- Daily Automated Bank Feeds
Bank feeds can be set up to import financial statements into the program automatically. The amount of time you save bypassing manual imports of bank statements is significant.
Invoicing is simple and fast with Xero. Best of all, it can be personalized for your business. An invoice can be created and emailed to a client. You’ll even get a notification when the email is opened. That way, no one can claim that they “never received it!”
- IT Maintenance and Installation Is Unnecessary
Since Xero is cloud-based, there is no need to have any software installed on your computer, nor do you need to purchase one license per user. Simply create a username/password. After you do, you can begin using the platform! One key aspect of Xero is that your accountant or bookkeeper can access whatever information you enter from their own computer.
- The Dashboard Provides You with a Financial Overview
You can see the amount of money you’re spending and bringing in directly on the software’s dashboard.
- Automatic Currency Conversion
Xero automatically converts various currencies. For instance, an Australian company can enter in a deposited check paid in Euros. The software will convert the amount to Australian Dollars automatically.
A majority of feedback from users of this program cite how user-friendly it is, particularly for those without an accounting background. Those users would normally find accounting duties hard to understand and/or time-consuming. The terminology that Xero uses is simplified so that just about anyone can use this program, no matter how little they know about bookkeeping or accounting. As an example, rather than using the term “Accounts Payable,” “Purchases” is used instead.
Because of its web-based accessibility, this accounting software can be used on any device with an internet connection. Small business owners find this feature convenient since they can view account info and transactions from anywhere. Bank transactions are automatically imported and coded based on the status they arrive in. Users can keep track of their receivables, transactions, and payments in real-time as Xero is regularly updated.
Another benefit of this program is that it gives users the choice to attach files and upload documentation supporting certain transactions. This allows users to enter relevant details connected to each transaction, make bookkeeping entries, and review backup information (if prior entries need to be reviewed). Transaction modifications can be monitored, which keeps your accounting team updated about the company’s finances.
- Software Integration
Although Xero can be used as standalone software, you can also integrate it with other software systems and programs. Payroll software systems and cash flow programs can integrate with Xero seamlessly. Owners of small businesses appreciate the compatibility Xero as with other programs.
New users can try out the software for free. Sign up for your free trial. If you find that Xero isn’t for you, you won’t lose a cent! Better still, for a limited time, Chan & Naylor Accountants Capalaba are offering 6 mths free Xero, Free set up and Free training videos valued at $590. The offer is valid for new BAS clients, our BAS preparation fee currently $390 +gst per BAS. Call us now on (07) 3823 2344 to discuss your new Xero set up.