Cloud Accounting News
Volume 1, Issue 1
Three. Two. One. Xero.
As one of the few Xero Certified Advisors in the USA, we’re excited to debut our new monthly article designed to help you learn more about Xero, a hot new cloud accounting system that we support. Today’s article will introduce you to the accounting software service and describe two of our favorite benefits.
What Is Xero?
Xero is an online accounting application that is an alternative to using QuickBooks, Sage, MYOB, or another small business accounting software. It allows a small business to invoice, bill, and track their bank balance, among other features. The standard accounting functions of general ledger, accounts receivable, and accounts payable are included in Xero.
You access Xero online, and all your files and the software are stored online. There is nothing to install, no software to upgrade, and no files to back up or pass to your accountant since it’s all accessible as long as you have an Internet connection, a browser, and the account login credentials.
The More, the Merrier
One of our favorite parts of Xero is they allow unlimited users at no additional costs. You’re not penalized for having multiple bookkeepers, multiple employees, or just a lot of friends!
Both QuickBooks and Sage charge by the number of users, so this is a huge competitive strategy for Xero. It makes sense when you think about it for an online product, because an increase in the number of users does not necessarily correlate with additional vendor costs.
Beautiful Bank Feeds
The highest payback feature in Xero is its daily bank feeds. Data entry is cut to almost nothing because all of your banking, PayPal, and credit card transactions automatically feed into Xero.
You don’t have to pay your bank a software fee for this either. It’s free. Xero accesses the banking data either directly with your bank or (in the case of most U.S. banks) through a company called Yodlee which provides the feeds.
The bank feed is super simple to set up. All you do is choose your bank name from a drop down list, enter your user ID and password for your online bank account, and that’s it. The transactions are entered automatically. If something goes wrong with your bank or the feed, you can always easily import the transactions via a standard import file.
Is Xero Right for Your Business?
If you’re already on Xero, congratulations. Our future articles will include how-to’s and fun features about Xero and its family of add-ons.
If you’re wondering if Xero is right for you, then it’s best to discuss this with an accounting professional that knows your existing software system, your business needs, and the capabilities of Xero. We’ll be happy to have that conversation with you.
A few of the types of clients that are perfect for Xero include:
· Clients who need very limited accounting features
· Clients in services industries where there is no inventory
· Clients that wait until tax time and get the entire year caught up in one swoop
· Clients who hate the software they are currently using
· Clients who are currently using Excel and re-entering everything
· Clients who keep everything in a shoebox
If you fit into one of these categories or are just curious, be sure to reach out and give us a call at (918) 289-8212 so we can find out whether Xero is right for your business.