Xero is a cloud-based accounting software, popular with many SMEs. We began working with Xero in 2022 and recommend it to clients who are keen to use a powerful, affordable software package to help them better manage their financial accounting. Here are a few of the benefits which Xero may be able to offer your business:
- Cloud-based – Xero is an online service, so you can access your accounts from any device connected to the internet. There is also an app, so you can check your financial records quickly and easily from your phone.
- Easy invoicing – the system enables invoices to be easily created and sent, with automated reminders for overdue payments. It’s also possible to see when an invoice is opened by a customer. Recurring invoices can be set up to automatically repeat each week, or month, creating drafts for quick approval.
- Quick payments – online payments through Stripe, PayPal, and GoCardless can be managed.
- Bank reconciliation – automated bank feeds allow transactions to be pulled in daily so that transactions can be matched with invoices and expenses for quick reconciliation.
- Expenses and bill management – receipts and bills can be uploaded and tracked digitally, and bills can be approved and paid directly from the system.
- Payroll and employee management – Xero integrates with payroll systems to handle salaries, taxes, and pensions. It can be used to run payroll too. Your employees can also submit timesheets and expenses directly.
- Financial reporting and tax compliance – real-time reports including profit & loss, balance sheet and cash flow can be generated quickly, for a specific time period. The system also calculates VAT and can file VAT returns online with HMRC. And of course it makes management accounts and end of year reports with your accountant a much easier process!
- Integration – Xero integrates with more than 1,000 third-party apps, including CRM, inventory management, and eCommerce platforms like Shopify and WooCommerce.
- Multi-currency – the system supports multiple currencies with automatic exchange rate updates.
- Highly secure – as well as using bank-grade encryption to keep data safe, the system allows you to set user roles and permissions to control access levels.
- Cost-effective – Xero is subscription based with a monthly fee; there are no expensive upfront software costs or maintenance fees.
With monthly subscriptions starting at £16, Xero can be a very cost-effective option. There is also a 30 day trial so you can explore whether Xero will be a useful addition to your business, before committing fully. To discuss using Xero for your business accounting please contact our friendly team.