As a piece of accounting software, Xero is essential for small businesses. In fact, you’ll struggle to find an SME that isn’t using it (or software like it).
However, what does Xero accounting software do? What are the actual benefits of bringing Xero into your current software stack? How will it help you in the long run? Here, we explain what you need to know about Xero accounting software.
Xero Helps Businesses Save Ttime
If you’re not trained or experienced in accounting, filling out your company tax return and writing financial statements is a time-consuming (not to mention stressful) experience. Even abridged accounts require you to do extensive form-filling, either on physical pieces of paper or via your Government Gateway.
Xero small business software, however, makes getting to this process considerably easier. Not only does it speed it up, but it also, makes it more accurate. You spend less time worrying about HMRC investigations, and more time on adding value for your customers and clients.
Specifically, Xero saves time by auto-filling receipts, automatically linking to your account and entering relevant transactions, and checking that business accounts make mathematical sense. It’s not always a 100% replacement for human accountants, but it streamlines the process.
Xero Improves Your Cash Flow
Even profitable businesses can struggle with cash flow. You might be profitable for the year, but if you don’t have cash on hand (because it is sitting in your accounts receivable), then you can struggle to pay employees and suppliers.
Xero helps to improve these situations for businesses. With Xero, you can see exactly what money is going in and out of the business whenever you want. The software also provides an online invoicing and chasing facility, speeding up payments.
Xero Lets You Log In Wherever You Like
As Xero is a cloud-based accounting solution, you can log in wherever you are, provided you have an internet connection. This makes it very easy to stay on top of your bookkeeping even if you are travelling or out of the office.
For instance, imagine you’re on the train, making your way to work. Xero allows you to access your business accounting information from your phone, letting you make better use of “dead time.” What’s more, you can set up multiple accounts, meaning that your employees can access and edit your accounts, whether they are in the office or working remotely.
Xero Is So, So Cost-Effective
Lastly, Xero is extremely affordable. Prices start from just twelve pounds per month for multiple users allowing you to stay on top of your business finances for less than you might think.
You can rely on Xero completely for all your accounting needs, eliminating payments to accounting firms entirely or you can use it to reduce the complexity of your accounts, attracting fewer fees when you do eventually go to an accountant.
In summary, the more you learn about Xero accounting software, the more appealing it becomes, offering small businesses multiple benefits. It’s affordable, accessible, saves time, and can even help improve your cash flow position.
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