XERO as the HERO!
If you own a small business or a startup, you understand how critical solid financial management is to your company’s success.
Cloud accounting software can help new and small firms manage their money more effectively, allowing them to better plan for the ups and downs of entrepreneurship.
Xero is one of the most popular options nowadays. We’ll look at the advantages of cloud accounting software and how to use Xero for your company in this post.
What is Xero Accounting Software?
Xero is a cloud-based accounting software system created with small businesses in mind. Xero, which was founded in 2006, gives businesses real-time financial visibility. Xero can help you manage your complete accounting process as a business owner.
From the fundamentals of bookkeeping to collecting online payments, paying bills, submitting VAT returns online, and even automating your accounting, we’ve got you covered. In a nutshell, it makes managing your finances a breeze and assists you in running a successful business.
Why Use Xero Accounting Software?
Because of its ease of use and adaptability, Xero is one of the fastest-growing and most popular cloud-based software solutions available. Xero is jam-packed with features and integrations that make it ideal for a variety of enterprises and industries.
Xero’s user interface received 96 per cent positive reviews on Capterra, and Xero’s simplicity of use received 95 per cent. It was also named a “Top Performer” for the year 2021.
Xero’s accounting software is designed to help small businesses grow and thrive.
Their online accounting platform connects businesses to their bank, payment services, accountant, and more than 700 third-party apps, providing a full company foundation.
Finally, Xero can be customized to meet your company’s specific needs.
Is Xero Accounting Software Any Good?
Xero now has a user base of over 2.7 million users. Xero is robust accounting software that is used by small business owners, bookkeepers, and accountants all around the world.
The accounting software provider from New Zealand is one of the most well-known today.
In the United Kingdom, New Zealand, North America, and even here in Australia, Xero is highly regarded and controls the cloud accounting market. In 2014 and 2015, Forbes selected Xero as one of the world’s most creative growth businesses.
Benefits of Xero Accounting Software
It is a smart idea to use Xero for your small business because the software will properly suit your needs. Here are four main advantages of adopting Xero for your company.
1. Increase the speed with which you are paid online
Online Payment
Fortunately, by linking to online payment services such as Stripe, GoCardless, and others, Xero can help you be paid up to twice as quickly. As a result, you may add a “pay now” button to your online invoices and email the PDFs. It’s also possible to see when the invoice was first opened, making it simple to keep track of payments.
If you make paying bills simple, customers are more likely to do it. Customers will be able to pay their bills online with a single click of a button.
Recurring Payments
If you offer recurring services, you can also utilize online invoicing to set up automatic payment collection from repeat clients on the due date via bank-to-bank or credit card payments.
Automatic Payment Reminder
Finally, one of the many Xero add-ons, such as Chaser, can help you automate the pursuit of overdue bills. This handy tool lets you customize your payment reminders and schedule them at the most convenient times, giving the impression that you are the one sending them.
2. Data Security
Xero adheres to the strictest cloud security requirements and has established many layers of protection to protect your personal and financial information as one of the industry leaders.
For example, all data is secured using bank-grade encryption algorithms and stored in secure data centres that are monitored 24 hours a day, seven days a week.
Xero uses a variety of cloud security precautions and even releases a comprehensive report on the matter.
3. Improve Business Efficiency
Another significant advantage of cloud accounting is that it improves business productivity for most business owners. That’s thanks in part to the time-saving features discussed earlier, but there’s more.
The 700+ third-party connectors we mentioned at the start of this piece are what distinguishes Xero. This enables you to automate not only accounting operations such as chasing delinquent bills, but also other aspects of your business such as reporting, personnel management, cost management, financial monitoring, and so on.
Imagine getting notified whenever a significant change in your financial situation occurs, such as a decrease in cash flow or an increase in expense claims. Alternatively, you may schedule and pay suppliers automatically, track mileage on the move, and bill projects as they progress. With Xero, you can do all of that and more.
4. Financial Information Availability
Xero is capable of being much more than just an online accounting program. It can serve as your company’s financial hub, providing you with a real-time financial picture from anywhere. If your job demands you to travel frequently or to be connected to your accounting data on a regular basis, Xero is the right software for you.
It comes with a set of typical reports, such as profit and loss, balance sheet, and VAT, which may be expanded by linking other web applications such as Fathom or Spotlight. These add-ons enable you to build automatic, stylish, visual, and unique reports with the appropriate KPIs for your company.
Powerful forecasting
You may also construct budgets, predictions, and plan various business scenarios with them. Without an accounting expertise, Xero can provide you with significant insights. This makes determining the impact of favourable and negative events on your company’s bottom line simple.
For instance, you may estimate a best-case/worst-case situation if your marketing initiatives truly take off or if you had to temporarily close down due to COVID limits.
Conclusion
As you can see, there is a slew of advantages to using Xero bookkeeping services for your company. You can get a 30-day trial available if you want to give it a shot. During this time, you can try out all of the features, set up your company or play about with one that has already been set up, and get to know the software. There is no requirement to use credit card.
What’s more, because Insta Bookkeeping is a certified Xero partner, we can help you set up the bookkeeping software and appropriately link your business, and also show you around as Xero accountants. You can schedule a free consultation with Insta Bookkeeping right here if you’d like to learn more about how to make cloud accounting work for your company.