Should your SME be using Xero Accounting software?
Deciding on whether to change the accounting software for your small business can be a difficult decision. As you know, we use and recommend Xero but perhaps you don’t really know why. In this post we will give you an overview of the advantages and disadvantages of this top selling program to help you make a more informed choice based on what’s best for your specific situation.
Advantages of Xero
Intuitive dashboard. The dashboard where you will control your Xero software is laid out in an intuitive manner; this means that there is a short learning curve to master this software, even if you have not used it previously.
Easy Importation and compatible with earlier forms of most other major accounting software. One of the main reasons why users choose to stick with an accounting software brand that they don’t enjoy using is that they worry about having trouble importing their sales and other figures that they tracked with another brand of software. Xero is specifically designed to make it easy to import your old bookkeeping records, even if you used another accounting software program.
It’s all in the Cloud. Xero operates entirely in the cloud. This means that updates can be applied quickly and automatically so that you no longer have to suffer from down time for upgrades. This also makes the system faster and practically eliminates timing out and other potential losses of data and other information. Since the system is entirely in the cloud, it requires less space on your computer or other platform, which also saves time and money for your business.
Complete customisation and easy to run frequent reports. Don’t like the way a specific report is set up in Xero? That’s no problem – just customise your report and save it as a template for future reports. You can also make all of your reports, except for the 1099, a “favourite” so that you can quickly find them in the main drop down menu for reports at the click of your mouse.
Xero also makes it easy to run frequent reports and provide snapshots of every aspect of your business so that you get a bird’s eye view of your business and how well you are doing at any point in time. By being able to keep your hand on the proverbial pulse of your business at all times, you can more informed decisions and better strategic plans for your business.
Improved cash flows. A main drawback of many accounting software programs is the difficulty in creating and sending invoices to bill your clients. Being able to quickly bill your clients is often the key to getting paid on time and increasing your business’ cash flows. Xero makes it easy to create and send invoices and add new customers at any time and from anywhere, even from your mobile platform!
It’s easy to ask for help. Regardless of your experience level, most small business owners need some help with their books from time to time. Many accounting programs make it difficult to share your books, but Xero makes it easy and allows you to invite an unlimited number of authorized users and collaborators at any time.
It’s cheaper than most of its competitors. Many software companies ding their clients with an expensive new charge anytime that they upgrade. Xero offers a range of services and tiers with a low monthly subscription with a plan that can fit every business and budget, regardless of its size. Updates are free, and Xero includes payroll, accounts receivable and accounts payable in its packages as well.
Disadvantages of Xero
Ongoing monthly subscription fee. Xero does require a low monthly subscription fee, with no commitment in order to use the software. Some may prefer paying a one-time free for software. While it’s true that some brands do only charge a one-time fee for the software, users should be aware that there are still fees that they will need to pay in the future for this type of software, such as whenever there is an update to the system. In the long run, these software packages tend to be more expensive than Xero because of the associated costs for IT, downtime and updates.
You might have fun. Many small business owners that used to dread doing their books find that they unexpectedly begin to actually enjoy doing their books when they start using Xero. If you hate having fun, this might be a significant drawback for you.
Now that you know a little bit more about the pros and cons associated with Xero, why not tell us what you think? Are you ready to start having fun while you do your books while also improving your cash flow and saving money?
If you are still a bit afraid about changing over to a new system, or have questions about how Xero could work for your business, why not get in touch with us today? We’ll be happy to go over your concerns and show you just how easy it can be to maintain your records with Xero.