No matter how much you love running your own business, being your own boss, and choosing your own hours, the chances are that you don’t love doing taxes. The simple words “tax season” can be enough to strike fear into the hearts of people all across the world, as they struggle to figure out the complexities of cash flow, and how they can make their business more profitable.
Xero is one of the most feature-rich and popular solutions for tax and financial management on the market today. It comes with a range of robust solutions, and it’s incredibly affordable too. With that in mind, I’m going to look at the top 10 reasons to use Xero for your accounts.
Disclaimer: I’m not being paid by Xero for this review, my opinions are entirely my own, and I encourage you to share your thoughts in the comments below! I’m just a real Xero fan, Sage sucks in comparison.
1. Manage Cashflow with Daily Bank Feeds
For many small businesses, one of the biggest challenges is managing cash flow. However, Xero’s dashboard provides an instant insight into your financial situation at any time. From the dashboard, you can see:
- How much money is in your bank
- How much you owe to credit cards
- Which invoices still need to be collected
- Which bills you need to pay.
The daily bank feed brings all of your business transactions into one place, so cash flow is easy to understand and manage. Reconciliation is one click of a button, I never have to print a thing.
2. Get Paid Faster
Xero’s simple invoicing solution helps you to get paid faster, which means that you have more cash in your accounts to grow your company. You can email your invoices to your clients with the click of a button, and give them a variety of different payment options to choose from too. Plus, since you can track when your clients have viewed an invoice, they can’t make the excuse that they haven’t received it. Xero even send out automatic reminders to debtors so you don’t have to. Better the machine be irritating than me!
3. Keep Tabs on your Inventory
Xero’s inventory tracking solution is ideal for retailers and wholesalers who want to learn more about which items sell best, at which times. You’ll be able to see the performance of your products and services, check out your profit margins by item, and use the information you receive to make the right decisions regarding pricing and ordering. What’s more, you can see instant up-to-date insights into your average purchasing costs, stock levels, and more. Watch the pennies as they say…
4. Simplify Payroll
Got employees to worry about? No problem. Xero payroll solutions automatically update your accounts and make paying employees simpler. You’ll have access to tools that track worker hours, and you can even give your employees self-service access from a Xero mobile app so that they can submit time sheets, or apply for leave. Enterprise features in small business, it’s fantastic and give your staff the right impression of your business.
5. Enjoy Mobile Access
With Xero, you can get access to your financial information anytime, anywhere, from any device. You may find yourself out with a client, and need to send an invoice. Fortunately, you can do that on the go with Xero, and have that invoice emailed instantly. The ability to run your business in a mobile fashion can free up the amount of time spent behind a desk.
6. Speed up Quoting, Ordering, and Invoicing
Running a business doesn’t just mean keeping track of the money that comes in, but watching the cash that goes out too. Make sure that you can create purchase orders quickly and effectively with Xero. You can attach supplier contracts to your inventory records, and even add photos for visual reference purposes.
7. Solidify your Security
All businesses, no matter how big or small, need security to thrive. With Xero, you can rest assured that your financial data is secured and encrypted, no matter what. All information is encrypted using industry-standard technology, multiple layers of firewalls, and more. There are regular security audits, and online backups are updated throughout the day, every day. Now that’s peace of mind 🙂
8. Improve your Financial Reports
Make your financial reports smarter with over 40 interactive reports to view on Xero at your leisure. You can track how specific sections of your business are working, and export budgetary documents and reports to spreadsheets to ensure that you always have access to the data you need in the simplest, most accurate format. Pulling a P&L couldn’t be simpler and all reports are drill-able with one click of the mouse.
9. Simplify Expense Claims
Make sure that you can always reimburse your business, and yourself, by recording purchases with Xero. You can decline or approve individual items that your employees claim for, and keep an in-depth record all your receipts. Employees can even create their own expense claims from the Xero mobile app. The app for Android of iOS smartphones is ACE and mitigates staff having to carry receipts around for a month! The app allows you to take a photo of the receipt and allocate it to the correct codes, heaven for a busy people on the move that hate admin tasks like expenses!
10. Keep your Business on Track
Xero offers solutions for accepting payments instantly online, converting multiple currencies, and keeping all your contacts stored in one simple location. Everything you need to simplify the financial side of your business is in one place, from charts and graphs on your dashboard to highlight business performance, to the ability to set your own goals for growth in the future.
Xero has to be one of my best finds in 2017, I used to use Sage but now I’ll never look back. I’m a small, fast growing business and Xero is perfect for my needs and doesn’t cost the earth like some of the other accounting platforms out there.
I’m rating it 10/10.
Rob is Founder & Publisher of UC Today, a leading news publication specialising in Unified Communications & Collaboration technologies.