With significant advancements in technology and proliferation of the digital world, businesses enjoy several advantages that were not available in the past. For instance, payroll, inventory management, bookkeeping, vendor management, logistics can be at the fingertips of business owners/CEOs when appropriate tools are chosen and optimized for their capabilities.
In this context, Xero positions itself as an accounting software that claims to be a class apart. Once employees of a business handling the bookkeeping functions are fully trained in using the Xero software, even individuals with no basic training in accounting or finance function can effectively take care of the bookkeeping needs of the business, according to Xero. Scalability is another great feature built into the software. This, in turn, means that the software keeps growing to cater to the growth of your business. Remember that when a business is on its growth trajectory, potentially more bookkeeping functions may be added to stay in tune with the enhanced needs. Businesses opt for a complete revamp of their bookkeeping software suit which obviously is expensive as well as time-consuming. With Xero, you can conveniently put this concern on the back burner since the software can be continuously tuned to the exacting needs of the business.
Though Xero is native to New Zealand and a little over a decade old, it has experienced exceptional growth in the Australian, European, UK and American markets. Xero has also won many accolades including recognition as the most innovative among growth companies in the world by Forbes magazine for 2 years in a row during 2014 and 2015. Briefly, Xero caters to the following functions of your business among others:-
- Bank reconciliation
- Expense claims
- Financial reporting
- Invoicing – automatic creation and sending of invoices
- Mobile apps (iPhone, Android/iPad)
- Online accounting – Accessible from anywhere
- Purchase orders
- Fixed assets
- GST returns
- Smart lists
- Contacts – to keep track of customers and suppliers
According to Business Advice Specialists Group, the following are among the major benefits that you can expect from zero and therefore, it makes sense to ensure that your employees are trained to get the best out of this.
Centralized access to all your financial data
With Xero as your bookkeeping software, accessing financial data of your business is literally at your fingertips. No more fumbling through different spreadsheets or search records to get what you need. If you are also someone who is constantly on the move, you will agree that global access to your financial data is more like carrying an entire office in your pockets.
Measuring business performance and profitability
When your financial data is constantly updated, the performance and profitability can be measured instantly. You can also generate a wide array of financial statements when needed including a P&L and Balance sheet. Budget variance reports, aged payables/receivables or any of the other reports that you may need even when you are distanced by thousands of miles from your usual business place can be accessed in minutes.
Making informed business decisions
By using your business information effectively, you have the ability to arrive at smart business decisions. For instance, you can analyze your campaign spend and understand its effectiveness before deciding on continuing with the campaign or otherwise. You can even raise a loan request to your bank using the Xero records generated from your account. With the records, it gets a lot easier for the bank to examine the viability of your request and make a quick decision.
Automating repetitive tasks
Many businesses tend to spend significant time in doing repetitive tasks. Xero helps to automate such tasks freeing up the time spent on those tasks for another productive deployment. For instance, if your business charges a subscription fee that is payable monthly or quarterly, your list can automatically receive renewal notice and reminders when the renewal is not made in time. This would, in turn, result in saving time as well as improve cash flow.
Access to multiple users
Xero can be accessed by all users authorized by the specific business seamlessly. This way, while the business owner focuses on cash flow, the Xero support team takes charge of issuing invoices, reconcile accounts, update expenses, and take care of filing statutory returns.
When the small business starts scaling greater heights, proper payroll management becomes essential. Xero has a full suite of inbuilt features that provide complete payroll management that can be activated when needed.
With all functions of book keeps getting updated in real time, business owners can get sound sleep and nearly forget about chances of any fraud or embezzlement. The home dashboard also provides quick alerts about unexpected/unplanned transactions so that unauthorized expenditure is stopped instantly.
Having examined the advantages that Xero brings to small as well as established businesses, getting the best out of Xero for your business needs appropriate training for your employees as well as the business owner/key personnel.
For instance, if your business handles multiple products and perhaps even multiple pack sizes with varying margins, invoicing is not only a priority but also time-consuming. But, Xero operators who are trained can navigate the software effectively eliminating wastage of time wading through the complex tasks in invoicing.
Similarly, payroll is another area that calls for accuracy as well as efficiency. With Xero, your employees gain the confidence that their earnings and entitlements are processed in a professional manner and delivered in time. Trained Xero professionals can also store your documents in the Xero files promoting paperless businesses.
Confident Xero operators can be a significant asset to your business about strategic planning, submitting tax returns on time, preparing your Profit & Loss Statement, Balance sheet and other reports that help the business owner monitor the business more efficiently.