With the Government’s Making Tax Digital initiative changing the way that businesses pay their tax, demand for sophisticated accounting software is on the increase, with apps like Xero growing in prominence. But is Xero worth it for small businesses?
The majority of small business owners are looking for a system that is straightforward to use yet sufficiently advance as to not be obsolete almost as soon as it is installed.
The benefits of switching to an online system have been widely documented. Gone are the days when clients turn up to see their accountant clutching a carrier bag full of paper receipts. Digital systems can help people stay on top of their company finances, offering a real-time view of income and expenditure that’s accessible from anywhere around the globe.
Systems such as Xero integrate seamlessly with other software and apps to enable business owners to keep track of their accounts at the touch of a button or a click on a smartphone. Unlike traditional software, Xero is cloud-based so can be operated from any device, so users can view balances, raise and pay invoices, claim expenses, customise reports and take picture receipts all in real time from anywhere in the world.
Is Xero worth it for small businesses who need to generate reports?
Xero boasts a number of features that help you work more efficiently. Data can be accessed simultaneously between business owners and accountants, while the various tools and features can be used to provide support and insight to help firms to grow.
These include the dashboard, that gives an instant, real-time snapshot of your business’s finances all in one place. Expenses can be submitted by snapping receipts and approving claims on the go while invoices and quotes can be created in PDF form from anywhere.
This means that users are no longer tied to a single computer – or indeed to the office at all. Financial data is stored securely in the cloud, with software updates and changes to tax compliance regulations made automatically.
Perhaps one of the most significant benefits of using Xero is that it saves you time. With all your information kept in one place, it’s quick and easy to get a snapshot of how your company is performing. If they’re not already using it, inviting your accountant to join Xero will ensure all your tax obligations are met swiftly and efficiently.
Setting up a feed from your bank accounts allows transactions to be imported securely into Xero every business day. This synchronisation feature allows you to reconcile bank transactions on a daily basis and to see an up-to-date picture of cash flow; you can spend less time entering data and simply log in to see all transactions across your account.
Is Xero worth it for small businesses for whom privacy is a key concern? For any business owner, security is paramount and Xero provides multiple layers of protection. Advice is available on minimising the risk of fraud or identity theft and recognising potentially fraudulent websites and emails.
Collaboration is key
Get the most out of this innovative software solution by working with your accountant and your employees.
Staff can use the system to request leave, submit their expenses or send out invoices. Your accountant, meanwhile, can see all your data clearly and use it to advise and make predictions for your business – from anywhere in the world, removing the need for time-consuming face to face meetings.
More than 800 add-on apps are available to build your own bespoke system, whether they be Xero’s own offerings such as Payroll, Expenses and Projects or third-party apps like Stripe or Vend. The Xero mobile app gives you the ability to access your accounts from your smartphone.
To find out more about Xero and the benefits it can offer your business, and discover what packages are available, talk to one of our friendly team members on 01484 441431 or head to our contact page.