What is Xero cloud based accounting?
Xero is an innovative cloud based accounting software that has all the tools you need to grow and scale your small business. It is a software that understands both the necessity and pain of accounting for small business owners and introduces a number of solutions for each through its simple to use functionality and integrations.
You are able to view and share interactive reports and budgets, import bank transactions, send invoice reminders and much more. Whether you’re setting up a new business or migrating your existing business accounts, Xero is a fast and simple software that will help you to spend less time in spreadsheets and more time focusing on your business.
7 Reasons why Xero is the best all round accounting software for small businesses
Xero is used by millions of small businesses worldwide and can be easily accessed anywhere via the cloud. We have listed 7 of the best reasons why Xero is and continues to be the best accounting software solution for small businesses.
If you are interested in using Xero for your business regardless of size, please contact us to talk about the range of pricing packages available.
1. Time saving capabilities
Xero gives you the opportunity to take control of your business finances anywhere in the world via the mobile app and simple online log in. Xero helps to create endless efficiencies by reducing the amount of time you spend manually inputting your finances. You can view real time financial details including information such as outstanding invoices and bills as well as set up rules, repeating invoices and much more.
2. Automated Bank Feeds
Xero automate bank feeds, this means that instead of manually importing bank statements into Xero, you can connect your bank and credit card account directly to Xero, which reduces the likelihood of error. With these being automated, it’s going to save you a lot of time and it’s a more efficient way to manage your accounts.
One of the biggest benefits of Xero is how user-friendly it is. The whole system is easy to navigate your way around and the terminology is easy to follow. Even without in-depth accounting knowledge, Xero is simple to understand and use which is what makes it so great for small business owners.
4. Always Improving
Like any system, there is always room for improvement. The great thing about Xero is that they release monthly product updates to keep you up to date with any changes and improvements. Cloud-based software can be used on any devise with internet connection, keeping small business owners connected with their business and accounts. Xero are working on flexibility with remote working, making data fluid and accessible.
5. Payments made easier
Late payment of invoices are a big problem in the UK, but using Xero is a great way to prevent cash flow issues. Xero allows you to see when an invoice has been opened, send statements to customers, set up automatic reminders and maintain your customer accounts quickly and efficiently.
6. Making Tax Digital
Making Tax Digital is a key part of the government’s plan to make it easier for businesses to get their tax right and keep on top of their finances. Making Tax Digital means you are no longer able to keep and submit manual VAT records and returns.
Instead, HMRC will only accept VAT returns sent using software that supports Making Tax Digital for VAT, such as Xero. This is now mandatory, for VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000).
HMRC also have plans for Making Tax Digital for income tax and corporation tax in the not to distant future and Xero are committed to ensuring they remain compliant with HMRC requirements, this means your business will be future proofed for evolving tax legislation.
7. Xero integration with apps
Xero integrates with hundreds of apps that small businesses use and this makes the process and interaction between them seamless and efficient. We have included a few examples below but there are many more in the Xero app section that may be relevant to your business.
A big challenge for small business owners is keeping their books and records up to date and understanding their financial position, Hubdoc and Xero can help small business owners to take control of their finances.
Hubdoc is a data capturing tool which extracts key data from documents and then creates transactions in Xero at the click of a button. Hubdoc allows you to email bills and receipts straight into your Hubdoc organisation as well as link direct to specific supplier accounts.
Hubdoc is easy to use, with a mobile app to upload a photo and set up automated connections so whenever you get a bill from a supplier it goes straight into Hubdoc. Like Xero, you can invite your accountants, bookkeepers or team members into your Hubdoc organisations and decide how much visibility you want them to have.
Hubdoc also stores documents therefore you are not required to keep any paper copies of bills and receipts freeing up space and reducing paperwork.
Hubspot – CRM integration
HubSpot’s CRM platform has all the tools and integrations you need for marketing, sales, content management and customer services. Xero and HubSpot integrate together for visibility into your customers’ journey and time saving.
HubSpot helps develop those leads your website attracts, meaning you can start to build better relationships with potential clients and existing clients through personalised conversations.
Collecting payments, chasing invoices and subscriptions can be time consuming and can put people off starting a business, however with GoCardless you don’t need to worry about that. It is made for recurring payments and puts you in control of when you get paid.
GoCardless is made for businesses that bill their customers on a recurring basis. It’s ideal for collecting payments for both intermittent and repeating invoices.
The GoCardless and Xero integration will end late payments, predict your cash flow, reduces bookkeeping and international payments are available with no mark-up on foreign exchange.
GoCardless and Xero has a simple setup. You are able to create a GoCardless account directly within Xero, you then send out your invoices and GoCardless will automatically collect payments when they are due. Once payment has been received through GoCardless, the invoice in Xero will be marked as ‘paid’. GoCardless is a lower cost alternative to card payments and helps take the stress away from invoicing.
Manage your workflow from quotes through to invoicing while tracking time and costs. Improve your project budgeting and gain critical insights into your business. Workflow Max and Xero integration is designed to improve profitability and gain insights. Workflow Max can configure to suit the needs of your business and track leader, proposals and sales pipeline all in one place.
Convinced that Xero is for you but need some training on how to use the software?
We are certified Xero advisors here at The Orenda Collective and we offer Xero training packages to clients and non-clients alike.
Some of the topics covered on the basic training include:
- Xero set up including organisation settings, financial information and branded invoice templates
- Connecting Xero to your bank through bank feeds
- Changes to the standard chart of accounts to make your accounting template bespoke to your business
- How to raise an invoice, send it directly to a customer, chasing the invoice with customer statements and reconciling the payment received against the invoice
- How to enter bills and receipts from your suppliers/ providers and how to reconcile the payment against the expense
- Reconciling the bank (a key control!)
- How to access reports and meaningful data within Xero and what it all means to you as a business owner
- Q&A time for you to go through any questions and concerns you may have
Our 60 minute training sessions are £150 and include a 15 minute call in advance of the training to ensure we set your training outcomes and cover anything specific to you within the session.
For more information or to discuss a tailored Xero training program please contact us.