Successful businesses master the mundane, and many may agree that maintaining your books is about as mundane as it gets.
You may not find it fun or thrilling, but the health of your business can depend on quality, accurate, and disciplined bookkeeping. As a business grows in complexity, so can the need for highly accurate bookkeeping.
Meticulous bookkeeping yields several benefits. A rock-solid approach to accounting may help:
- Shed light on the financial health of your business
- Highlight any cashflow surplus or deficit
- Uncover financial pitfalls or unnecessary expenses
- Once discovered, you can improve this, thereby improving your business
- Track profits and growth
- Make future plans
- Easily pay taxes
- Identify and detail possible tax deductions
- Make timely payments to employees
The great news about bookkeeping nowadays is that technology can make it exponentially easier. This can come in handy especially as your business grows and the layers of complexity increase.
A tool like Xero bookkeeping software can make this easier for you.
What is Xero?
Xero is a cloud-based accounting software. It touts itself as the “accounting software for small business, that works anywhere you do.”
When it comes to your business finances and bookkeeping results, Xero’s software can potentially save you time and minimize agonizing headaches.
If you’ve ever burned the midnight oil trying to organize your financial reports, make a budget, balance your books, or pay taxes, then Xero might be for you.
What are Xero’s main features?
Integration across several devices: You can use Xero on a Mac, PC, Tablet, and smartphone. If you can access the cloud, you can access Xero. The software can also integrate with more than 800 different business apps including: Gusto, Google, Microsoft, PayPal, Stripe, Squarespace, Shopify, Bill.com, Square, and many others.
Real-time financial health feedback: Accurate and updated cash flows.
Online invoicing services:
- Personalized and customizable
- Replicate previous invoices without the need to re-enter all information
- Templates available
- Reminder invoices
- Two-step authentication to protect payments and information
Additional Xero accountant tools:
Xero HQ: Create reports, get business insights, see an activity feed that will help you manage your time or remember things that need to get done. You can even manage staff through this tool.
Practice manager: Track projects and/or employee timesheets. This tool may give you a more accurate picture of the time spent on a project and help you bill accordingly. With the integration, Xero can tell you how much time you have dedicated to each client, see estimated earnings reports for accurate job costing, and monitor job progress in real-time. This tool may optimize your organization to a new level.
Workpaper tool: Populate forms, import data, maintain accurate documentation, and answer client inquiries through the cloud.
Xero tax tools: Track and determine the amount of taxes to be paid quarterly or at the end of the year. This tool can also prepare tax forms for clients and manage 1099 contractor-related forms. It’s designed to help reduce manual data entry and repetitive work across platforms and sheets, which could enhance accuracy and save time.
You can also export the tax documents created in Xero to the tax software of your choice.
Xero Cashbook and Xero Ledger: Import client bank statements and reconcile accounts, without having to manually search and input data from every sheet. All of your clients and cashflow data can be stored in one place and you can see graphical representations of your finances.
This tool comes with 24/7 support, online training, and video tutorials.
Methods of customer payment supported by Xero
Your customers will have several different payment methods available to them through your invoices, including debit card, credit card, ACH debit, Apple Pay, GoCardless, and Stripe.
Connect your bank accounts, reconcile statements, and make payments
You can connect your bank accounts so that Xero can import information on a daily basis and integrate the data into the software. This tool can help you classify transactions (or agree/disagree with Xero’s suggestions), so that Xero can reconcile your accounts.
Along with this, Xero lets you schedule and make payments in one location. You can see what payments are pending and what you’ll have to pay in the near future.
By connecting your bank accounts, reconciling with Xero, and keeping tabs on payments, Xero can help you maintain an accurate, up-to-date overview of your financials on a daily basis.
Convert to Xero from Quickbooks
At no extra charge, you can make the switch from Quickbooks to Xero and import current and previous year transactions. If you like what you see, you can sign up for Xero after the conversion.
You can manage inventory using the management software. It might help you know the real-time state of inventory and gain insights about which products are moving the fastest or slowest. This may reduce the need for repetitive entry of inventory on other forms since Xero will allow you to import inventory information to other tools within the software.
Calculate sales tax
Xero automatically calculates sales taxes for you. You can change the calculations based on your services or location as needed to get the most accurate result.
Resources for Success
Xero has additional tools for customers. Some of the resources offered by Xero are:
- Small business guides, including guides and recommendations on:
- Inventory and invoicing
- How to start and grow your business
- Tips for hiring staff
- Xero Central, which includes additional education and support services
- Video Library with a range of tutorials featuring Xero’s tools
Get help from a partner advisor or Xero Champion
Xero helps connect you to an accountant or bookkeeper that is well-versed and experienced not only with Xero software but also with accounting demands in your industry.
Who is Xero for?
Based on the various bookkeeping and financial tools available from Xero, the software might be best for businesses with fairly complex business operations, employees, multiple clients, or various suppliers.
Xero specifically highlights solutions for these business types:
- Repair-based businesses
- Healthcare services
- Real estate
- Information Technology
Who isn’t Xero for?
Xero promotes itself as a software solution that can do the heavy lifting for you.
Its tools and features consist of real-time reports related to projects in progress, accurate billing and job costing, invoicing, and even up-to-date inventory reporting.
Businesses can link accounts, calculate sales tax, and integrate information from other apps.
So if you don’t have inventory, are able to easily manage your client base, don’t have any employees, have no use or concern regarding sales tax, or simply do not feel the need to simplify your business operations, then your business might not benefit from a service that addresses several layers of complexity and responsibilities.
Freelancers, one-person operations, and simple business structures, for example, might find Xero’s software too robust for their needs.
What else should you know about Xero?
Xero has a 3.9 rating on Trustpilot. Click here so you can see more than 2,200 reviews and scores from customers.
Pricing options range from $9 to $60 per month* depending on your business needs and the tools you decide to purchase.
Xero’s technology may automate a lot of the processes that take us humans a long time to complete.
Xero can help make complex operations simple.
If you’re a business owner with a complex operation, manage employees and inventory, and find yourself elbow deep in spreadsheets having to dedicate long, grueling hours to complete your books due to the complexity involved, then you might benefit from Xero’s software.
Leverage the power of technology and you could regain some of your time and agonize less about cash flow, accounting, payments, and taxes.
If that’s what you’re looking for, Xero could be an excellent choice of accounting software for your business.