Accounting is the language of business and it measures the results of an organisation’s economic activities. Accounting is an integral component of business management and if you are in charge of a business, then you need to use appropriate software to monitor various activities. We recommend using Xero as your go-to small business accounting software. Xero is very affordable with payment plans starting at $20 per month for starter packages with limited features. The premium pack is only double that amount and comes with all the features.
Xero (not to be confused with Xerox) is a cloud-based accounting software from New Zealand that is used worldwide by over 700,000 subscribers. That means that you can access all of your financial data remotely without being in front of a computer. This makes Xero far superior to traditional desktop accounting software. Xero links with your bank accounts so you can dynamically view all transactions instantly as they happen. This is great for small businesses who typically always want to know when money has been transferred to and from their account.
Multiple users can use the accounting software simultaneously, making it very good for employees to collaborate from different locations without any hiccups or issues. This provides real-time viewing of finances. A mobile app, Xero Touch, even allows you to run your business on the go, taking full advantage of the cloud.
Xero comes with a comprehensive list of features. Here are some of the main ones.
- You can see up-to-date financials in real time.
- The clean and crisp dashboard allows users to see everything (e.g. bank balances, expense claims, invoices, bills, etc.) at a glance. Xero has a clean and user-friendly interface, making it very easy to use.
- Multi-currency accounting allows your business to conduct transactions with foreign currencies, with gains and losses being calculated for you.
- Unlimited file storage allows you to attach files to all of your transactions to give them more information.
- You can send online invoices to your customers to get paid faster and improve cashflow.
- You can create and manage quotes to eventually turn them into invoices.
- If invoice payments are overdue, you can send your customers reminders to jog their memory and pay.
- You can create custom purchase orders and copy them to bills for payment.
- You can handle personal expenses within Xero. All you need to do is review them and accept the receipts.
- Easily track and monitor employee payroll with a very simple tool. Everything is automatically updated so you know exactly who was paid and when they were paid.
- View interactive financial reports and budgets in real time. You never have to wait until the end of the month to know what has been transferred right now.
- Quickly see how well your business is doing based on various key performance indicators or metrics.
- Xero ensures that you data is safe and secure using multi-layer security. Two-step authentication provides additional security for your Xero account, thereby safeguarding your precious data in case your login credentials are stolen. In addition to using a password to login, you must also enter code generated by an authenticator app installed on your phone.
- Xero provides 24/7 customer support for all customers all over the world. They have knowledgeable experts who gladly take care of your accounting woes.
- Xero even comes with an online help center, containing various information and tips about the software.
With all of these useful and beneficial features, it is easy to understand why you need to use Xero as your accounting software for your small business.