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The accounting profession is currently undergoing a process of change. Technological advancements in recent years have affected the way accountants carry out their activities. As a result, there are several options for accounting software with new technologies that individual accountants and firms can use.
However, not all accounting software comes at par when it comes to features and ease of use. Xero has become one of the most preferred choices among professionals because of its unique features. This article will explore why Xero is the preferred choice for many companies and accountants across different industries.
What is Xero?
Xero is online accounting software designed for small businesses. It allows you to easily track your income and expenses, adding them automatically as you work through the application. In addition, you can connect your bank account, so all transactions are recorded automatically each time you swipe your credit card or take cash from the ATM. Just like that!
All of this information is sent up to their servers, where it is analyzed to get insights into where your money is going, how much money you are making/losing based on bills paid or not paid etc. After that, it’s easy enough to use the dashboard to design invoices for clients, and create purchase orders or expense reports.
Xero Key Features
The key features that make Xero unique among other accounting software include:
Seamless integration with Microsoft Excel
Management of multiple currencies
Real-time data updates
Mobility and accessibility
Seamless Integration with Microsoft Excel
One of the features that make Xero unique among other accounting software is its integration with Microsoft Excel. This feature allows for easier data management and manipulation. With this process, accountants can easily upload their client’s details into Xero to perform better analysis in line with the clients’ requirements.
The ease in uploading offers greater convenience to firms looking forward to using Xero because it only requires a few clicks before all relevant information is sent across. This factor makes it possible for companies to harness data about their customers for effective strategies.
It also contributes to time-saving as several tasks such as data management and sales analysis can be done at one point.
Management of Multiple Currencies
Companies have a global presence that necessitates accounting with different currencies. For this reason, they require accounting software that offers the option of managing multiple currencies.
Xero offers a straightforward approach since it allows the user to maintain all relevant information under one roof. Moreover, the system works with any currency, allowing companies to save on conversion costs from their local currencies to US dollars or vice versa, especially when carrying out business abroad.
In effect, Xero has been found to help firms save up money resulting from transactions involving various currencies.
Real-Time Data Updates
Affected by the current economic situation, managers are interested in data that is up to date. This allows them to reduce risks involved in failed deals and identify lucrative opportunities early enough to capitalize on these changes.
Xero offers real-time updates of financial information, thereby allowing users access to more details about their transactions. The system also makes it possible for accountants and managers to update specific information such as invoices and expenses within a few clicks of a button.
Given this factor, more business executives have looked forward to using Xero because it saves time and offers greater convenience when making reports or analyses.
Mobility and Accessibility
The mobility factor allows users of Xero to access information on the go. Business executives who are always on the move prefer this feature because they can update financial information while at airports or hotels. They only require an internet connection that is almost available everywhere to keep their data updated.
This factor also makes it possible for accountants to compare using up-to-date records about their customers’ expenses. In addition, Xero users can access these records through any device like laptops or smartphones, making it easy for them to conduct business at any time, regardless of location.
Benefits of Xero
While many different solutions exist to help businesses run more efficiently, Xero is widely recognized as accountants’ preferred choice of accounting software. This selection is because of its powerful features that are specifically designed for accountants’ needs.
The following are some of the key reasons why you should include Xero in your list of potential business solutions:
The flexibility to customize invoicing, billing, and other functions to suit the particular needs of your clientele.
While most small businesses would prefer simple online tools that can save time and money, specific requirements may need more complicated functionality. In addition, accountants can easily modify several aspects within their client’s accounts using this tool to suit their unique financial situations, which allows for a great deal of flexibility without compromising on the necessary features.
The ability to carry out tax returns efficiently.
If you handle multiple clients, your business tools must allow for maximum efficiency. This software enables users to complete their tax returns with relative ease, thereby increasing the efficiency of your company as a whole.
Track your time and invoice your clientele.
A common complaint that many accountants often have about various accounting software is that they cannot track their time effectively. Xero makes this task easier by offering invoicing capabilities through the platform. All you need to do is input your hourly rate and any other relevant factors to provide accurate rates to your clientele.
Increase your reach at an affordable price.
The affordability of Xero’s services has made it the number one choice for many accounting firms looking to increase their market share. If you are starting or planning to expand your current business model, this software is a great way to go without having to spend large amounts of money on creating new infrastructure.
Allocate tasks more efficiently between accountants and managers
Being able to coordinate well when handling multiple responsibilities is essential when running a company. The tools offered by Xero can undoubtedly help in this regard by allowing users to input data about invoice expenses which enables managers and accountants alike to track their areas of responsibility. This feature then allows you to delegate tasks better between them and become more efficient as a whole.
Xero is updated frequently with the latest technological features that enable accounting firms, especially those with multiple clients, to work more efficiently. The fact that most accountants who use this software are pleased with its functionalities speaks volumes about its benefits compared to other similar services available in the market today.
Xero and SBR
Every business needs to communicate with its stakeholders, but it is not always easy. With the SBR, you can create up to one report template you use for all your clients & just customize it for each of them. Then simply email the links to the right people and they can approve or request changes by logging in to their account on your site without having to set up any access!
When you send out an invoice, Xero will automatically recognize it as an expense, so if they also pay using Xero (or another integrated payment system), there’s no need for reconciliations between your accounts! The best thing about this solution is that it is free of charge.
Xero users can log into their account and access the reports to approve/request changes right away! In addition, you can embed our dashboards on your website or embed them in emails you send out to your customers. This will also allow you to track which ones have been viewed by who and when, so any follow-ups after that will be much more efficient.
Is Xero SBR-enabled?
Yes, Xero SBR is enabled for all accounts without a payment method associated. However, payment methods must be added to allow this feature.
What happens if I remove my card from the account?
The SBR/Xero Card feature will be disabled. To re-enable this, you would need to add another payment method to your Xero account. However, if you delete the payment method on your Xero end, it will not need to be added again through Zoho Books.
Can I disable the card at any time?
Yes, customers can turn off their cards under “Settings > My Billing > Card Management” by clicking “Remove.” However, this only removes the card as a payment option and does not delete or deactivate the card itself. You can also see which cards are activated for this specific user under “Settings > My Billing > Card Management” by clicking “Refer.”
What card types are supported?
The Xero SBR/Xero Card feature supports Visa, MasterCard, and American Express. Debit cards with the VISA or MasterCard logo and prepaid cards (i.e., Reloadable Prepaid Cards) with either the VISA or MasterCard logo will offer.
How is Xero better than MYOB or Quickbooks?
Xero is accounting software that boasts an easy-to-use interface with essential business management tools. In addition, it ties into over 30 popular accounting, payment and eCommerce platforms to help you track your cash flow no matter what you’re selling.
Unlike Xero, MYOB doesn’t have any workflow automation capabilities or integrations with other apps. On the other hand, Quickbooks is ideal for startups looking to manage invoices, expenses, and inventory.
Its biggest drawback, however, is that it’s not web-based like Xero. That means you’ll either need to use a Mac or install its clunky Windows desktop app.
Quickbooks also isn’t ideal for businesses looking to integrate with other apps (although there are workarounds). For example, you can sync your bank account with Quickbooks by manually entering transactions, but doing so is tedious and time-consuming. Plus, because the software doesn’t have any workflow automation capabilities, it’s difficult to automate data entry tasks like paying bills or tracking expenses.
MYOB lacks some of the features that make Xero stand out among small business accounting solutions:
While MYOB has built-in bill payment or expense management tools, you can integrate it with expenses apps like Bill.com and Expensify.
MYOB cannot support APIs for integration between apps, so you won’t be able to connect your bank or inventory management app without manual data entry. It also doesn’t have an automated workflow system that allows changes made on one screen to flow through the entire application, making it difficult for businesses that process many transactions per day.
MYOB does have a few unique features, though: Quickbooks boasts excellent invoicing tools but falls short in other areas. In addition, while Xero is ideal for small business owners who don’t want to pay transaction fees, Quickbooks offers two subscription plans: Basic ($19/month) and ($29/month).
These let you choose a plan based on how many transactions you process. The Basic program is designed for sole proprietors, while the Plus version can support companies that have employees or need to track inventory.
Quickbooks lacks some of the other bells and whistles offered by its competitors: neither Quickbooks nor MYOB offers payroll management, customer management tools, or an app store with add-ons from third-party developers. The only other notable feature Quickbooks offers a contact manager tool so small business owners can keep track of their customers’ information outside of the application itself.
Why Xero is Better
If you’re looking for a great way to manage your books and automate your workflow, Xero should be your first choice. It has intuitive features that make it easy to manage business data, and unlike Quickbooks, it’s accessible with most internet-enabled devices.
Finally, Xero has a large app marketplace that lets customers choose from best-in-class apps for inventory management, customer relationship management (CRM), invoicing, expense reports, and more.
For these reasons, Xero is better suited to small businesses without daily transactions, which offers don’t want to pay transaction fees.
In our Certificate IV in Accounting and Bookkeeping accredited course, our students learn using MYOB as most of our students are not business owners and are looking for careers in accounting and bookkeeping. However, we will be introducing a new training program where students will learn using Xero and designed for small business owners.