As a small business owner, managing your finances comes as one of many challenges when it comes to running your business, including:
- Payroll,
- Invoicing,
- Bookkeeping,
- Inventory,
- Staying on top of expenses and receipts…
Not to mention… Keeping your customers and employees happy. It’s a lot to juggle as-is.
One way you can free up some of your time is by having a clear system to organising your mountains of receipts. And the most efficient way to do this is by using small business accounting software.
But with multiple cloud based accounting software options on the market, choosing the right one can be daunting.
Among the most popular is Xero bookkeeping software, a comprehensive and user-friendly solution designed specifically for small businesses–and their bookkeepers.
In this article, we’ll explore seven reasons to use Xero’s online accounting software.
What is Xero used for?
First things first–what is Xero and what is it used primarily for?
Xero is a cloud-based accounting platform designed to help small businesses manage their finances.
It allows business owners to track cash flow, reconcile bank statements, manage payroll, and generate financial reports—all in one place.
The software is known for its intuitive interface, robust features, and flexibility depending on how tech-savvy you are as a business owner.
Basically, it is an ideal choice for small businesses seeking a seamless accounting experience.
Read more: What Does A Bookkeeper Do In Australia? And Why Your Business Needs One
Whether you’ve decided to manage your books alone, or are handing your books to a trusted bookkeeper, there are many reasons Xero is a great software for small business owners.
1. It’s easy to use and accessible
Of all the many features that Xero has is that it’s quite easy to to use the basic functions.
The software’s user-friendly interface makes it simple for small business owners to navigate through various features without extensive accounting knowledge.
With Xero’s cloud-based platform, you can access your financial data anytime, anywhere, from any device so that you can instantly know things like:
- How much cash is in the bank
- What invoices need to be paid
- What payments are overdue
- Your cash flow activities
This flexibility allows business owners to stay on top of their accounting tasks and share information with their bookkeepers even when they’re on the go.
2. Keeps your financial management under one roof
Xero software offers a wide range of tools to help you manage your business finances efficiently, including bookkeeping functions such as invoicing and payroll.
Xero also connects to a live bank feed, so all your financial info is in one place.
If you work with a bookkeeper, Xero accounting software makes it easier to communicate with them, reducing the risk of data-sharing errors. This way, you don’t have to worry about delays or cash flow problems.
3. Keeps you on top of cash flow insights in real-time
Understanding your cash flow–the amount of money coming in and going out of your business.
Xero accounting software provides real-time insights into your cash flow, helping you keep a finger on the pulse of your business’s financial health.
With Xero, you can track incoming and outgoing cash, view outstanding invoices, and monitor expenses.
Real-time visibility allows you to make better decisions for your business, plan for future growth, and stay prepared for unexpected cash flow changes, such as during slower seasons.
4. It integrates with other business tools
If you’re using other types of software for your business, Xero software seamlessly integrates with other business tools, making it easier to manage your business info.
Whether you use point-of-sale systems, customer relationship management (CRM) software, or project management tools, Xero’s extensive range of integrations ensures you can connect the platforms you already use.
This means you don’t have to do manual data entry which is prone to mistakes.
5. It helps keep your business compliant
Staying compliant with tax regulations in Australia is crucial for small businesses.
Xero accounting software helps you meet these obligations–and if you’re not doing your own bookkeeping, it helps your bookkeepers keep track of all your finances come tax season.
The software can generate financial reports, including profit and loss statements, balance sheets, and cash flow reports.
You can customise these reports to suit your business’s specific needs–this way, you have all the necessary documentation for filing taxes and be ready for financial audits.
Overwhelmed with bookkeeping work? Let a trusted bookkeeper take over for you. Contact a local bookkeeper today!
6. Chances are, your business won’t outgrow it
As your business grows, your accounting needs will evolve.
Xero software is designed to scale with your business, offering flexible pricing plans and features to accommodate growth.
Whether you’re a sole trader or managing a team, Xero accounting software provides the tools you need to keep your finances in order.
This scalability ensures that you won’t outgrow your accounting software as your business expands.
7. You get access to loads of support and resources
With so many users, Xero software offers extensive support and resources for small business owners.
From comprehensive online guides to customer support, Xero ensures that you have the assistance you need to make the most of the software.
Additionally, Xero’s online community allows you to connect with other small business owners, share insights, and learn from their experiences.
Small business accounting software will keep your business compliant–and your bookkeeper will love you for it
Xero is an excellent choice for small business owners seeking a comprehensive, user-friendly bookkeeping solution.
Even if it offers advanced functionalities, it’s easy enough to use on your own and allows you to simplify managing your business finances by putting all your paperwork into the cloud.
By choosing Xero, you’ll have the tools and support you need to manage your business finances effectively and focus on what matters most.
Better yet, hand over your books and Xero account to a bookkeeper so you can focus on growing your business. Contact a bookkeeper nearest you!
