Xero is used in many accounting firms across the globe for bookkeeping, audit trails, efficient administration, and the elimination of errors. This incredible tool offers affordable monthly subscriptions that support accrual and cash basis accounting.
Xero is cloud-based accounting software that was founded in 2006 in New Zealand. It has grown to compete with other accounting software such as QuickBooks. Xero has gained traction due to its unique integration features that make data entry easy by eliminating the manual entry that consumes time and leaves room for errors. This accounting solution offers Android and iOS integrations for an unlimited number of users.
Xero has helped ease manual data entry that is usually time-consuming and often leaves room for errors. Xero digital software automatically remembers past transactions and updates the new ones. Additionally, one does not need to manually key in figures. Instead, they can take photos of invoices and payrolls and upload them into Xero, automatically updating the figures.
Another advantage of using Xero is that it is easy to integrate it into other apps and software packages, such as bank accounts, reports, and payrolls.
Xero captures audit trails effectively and in real time. It captures the transaction chain: who has entered what, who has approved it, who has edited what, and when.
This helps business owners to review in case something has gone wrong without pointing fingers and shifting blame.
Xero also allows room for reporting. One can easily customize and adjust the reporting tools to help monitor growth.
Xero has several incredible features, including:
It takes time to learn how to use Xero. Luckily, the interface comes with videos and articles to guide you through the process. It also offers a free comprehensive accounting guide that helps users to set up a Xero account.
Xero has a re-arrangeable dashboard with graphs labeled bank accounts, invoices not yet paid, bills to pay, and the total cash flow.
In the latest update, Xero added the sales overview with charts and graphs that break down invoices and estimates. While it only provides one invoice template, users can create more templates.
These include recurring invoices, automatic invoice reminders, and default payments for invoicing and payrolls.
The Xero-to-Xero feature allows easy sending and receiving invoices to and from other Xero users.
Businesses can create online quotes and convert them into invoices or purchase orders using the Xero software. One can also duplicate past quotes and add internal quotes. Interestingly, Xero uses the same templates for quotes.
Adding the client portal to the Xero software sets it apart from other accounting software. Here, customers can view, print, and pay invoices online. Moreover, existing and new clients can comment, accept or decline quotes online.
In the contact management feature, businesses add basic contact information, discounts, and tax raise for customers. They can also create contact groups, where one can target VIP clients or create a group for loyal customers. This feature also has a new smart list that helps users email all customers at once while offering promotional deals.
Businesses can link Xero to their bank accounts or manually import bank statements into the Xero app. This helps to categorize expenses and manage transactions. Xero has a smart categorization that remembers past transactions and automatically categorizes and updates new transactions by clicking the expense trucking button.
This feature is beneficial to established plan-only users. It includes additional features like expense claims, automatic receipt scans, and extra expense analytics. This means full expense management.
Xero creates a chart of accounts based on the organization plan and the type of business. One can manage fixed assets and choose between depreciation schedules such as declining balances and fixed rates. One can also enable current bills by attaching relevant documents to Xero.
Xero can write, customize and print checks to customers directly from the bank account.
Xero has an inventory where one can add products or services they sell. Additionally, one can add the product description, add attachments to items, track inventories and make adjustments. The advantage of tracking inventories with Xero is that it keeps tabs on the stock levels, average purchase amount, and the number of products quoted.
Xero offers comprehensive reports on profits, loss, sales and budgeting, and cash flow. These reports can be customized for easy access. The reports are 55 in total.
One can also create a budget manager report that ranges from 3 months to 6 months, or 1 year depending on the goal one wants to achieve. This budget can be accessed any time to evaluate growth and determine whether the goal is being met.
Other features include class tracking that can be classified into departments, locations, and teams, purchase orders that may detail delivery dates and supply orders, and packing that can be downloaded from Xero.
Xero has scalable and reasonable pricing, is unlimited to its users, and has access to every feature except for the payroll feature, which was amended in 2018. Now Xero is advising its users to join the Gusto payroll.
Xero 3 different monthly plans – Early, Growing and Established. Note that it does not have an annual contract so it’s easy to leave at an point. However, if one chooses to cancel their subscription, they cannot transfer information to another app.
The software offers a free -30-day trial to users before buying software. The company also offers a demo that helps you explore the software before purchasing it.
Moreover, Xero offers discounts for owners of multiple companies and nonprofit organizations.
Xero’s pricing structure is as follows:
• Businesses can send quotes and receive up to 20 invoices • Use multiple currencies • Reconcile bank transactions • Unlimited users.
• Extra security and a two-step verification process • A 24-hour monitoring • Track projects • Use multiple currencies • Claim expenses • Capture bills • And all other features in the Early and Growing plans.
Xero has received great reviews due to its ease of use, integration ability, and efficient contact management. As a result, Xero recently won an award in the UK’s Accounting Software Awards series, and has been named one of UK’s biggest independent accounting software solutions.
Xero is ideal accounting software for all business types. It helps in the effective organization and administration of businesses. Additionally, its unique layout helps users to monitor the growth and generate reports. It is also objective and intuitive. Users have demonstrated their satisfaction and confidence by voting Xero as the best accounting software.
