Efficient bookkeeping is crucial for small businesses to provide financial clarity and maintain a positive cash flow. But it is time-consuming and can easily get lost in the course of a busy day.
Fortunately, the days of spending hours poring over spreadsheets are over. Cloud-based accounting software like Xero is a complete game-changer, making bookkeeping a whole lot easier.
Xero software has revolutionised bookkeeping thanks to powerful accounting features such as automated bank feeds, multi-user capability, invoicing and expense management. It delivers real-time financial reporting and integrates with other apps to help streamline and automate business operations.
In this blog, we’ll take a look at the Xero features that can transform your bookkeeping, automate tasks and change the way you manage your business finances forever.
At Archimedia Accounts, we are bookkeeping and cloud accounting software experts. We can help you unlock the potential of Xero accounting, save hours of your business day and elevate your bookkeeping game to new heights.
Contact us today to get started.
Why is Xero good for bookkeeping?
Small business owners are usually time-strapped and consumed with the daily running of their companies. Bookkeeping can be a strain, even if you’re an experienced business owner. Thankfully, technology has got your back.
Wave goodbye to Excel spreadsheets, paperwork and headaches and say hello to Xero, one of the best online accounting software systems available today.
Xero integrates with your bank accounts, enabling you to track income and expenses, create invoices, reconcile bank transactions, generate reports, and lots more – all in one visually-appealing digital platform.
Perhaps the most significant benefit is that Xero works on any computer or mobile device, at any time, wherever you are (providing you download the mobile app and have an internet connection). Not only is this incredibly convenient, it means that you have a constant, accurate view of your financial data.
Key features of Xero for better bookkeeping
Xero offers essential features such as real-time financial reporting, easy invoicing and seamless integration with other business tools to enhance bookkeeping efficiency.
Let us take a look at the key features:
Bank reconciliation
If you dread the task of bank reconciliation, then Xero is a lifesaver as it features automated daily bank feeds.
Xero automatically syncs to your bank account and imports transactions from your bank feed to your accounts. This eliminates the need for manual data entry, saving valuable time and improving accuracy.
See how you set up Xero with your bank feed here.
Easy invoicing
Xero offers an invoice tool that lets you create, send and archive professional-looking sales invoices.
Your invoice can be personalised, and you can also set up schedules to send invoices automatically.
Payment processing
When it comes to money out of the business, Xero makes it easy to pay bills, create purchase orders, schedule payments and accept online payments to ensure your short-term cash flow remains healthy.
Expense tracking
With Xero, you can easily track and categorise business expenses. Just scan in a receipt or take a photo, and then we will reconcile it with your bank transactions in Xero.
What’s more, expenses are far easier to store and find. Managing expense claims and keeping track of costs has never been so easy.
Financial reporting
As cloud-based software, Xero gives you instant access to real-time financial data, keeping you 100% in control of your finances.
You can also use it to gain valuable insights by setting up customisable reports such as a profit and loss statement, balance sheet, and cash flow statement. Using Xero data in this way can help you make smarter and more profitable decisions.
Multi-user collaboration
Xero allows multiple users, such as business owners, employees and accountants, to collaborate live on the same platform.
This eliminates the pitfalls of version control and ensures seamless sharing of financial data. While some Xero pricing plans have unlimited users, most will allow you to add an additional user for a small fee.
Integration with third-party apps
As any accountant will tell you, finance is the glue that holds departments together.
It helps people in the business to make smart decisions, allocate resources wisely, and keep the whole business running smoothly. With Xero accounting software, you can enhance your financial management capabilities even further.
Xero integrates with 1,000s of third-party applications, meaning that it can become the centre of your business operations, giving you greater financial control across your organisation.
Types of apps that can be integrated with Xero include:
- Payment gateways: Apps such as PayPal and Stripe can be integrated with Xero to facilitate seamless and fast online payments.
- E-commerce platforms: Xero can integrate with popular e-commerce platforms like Amazon and eBay to sync sales and inventory.
- Expense management: You can add an app to manage expenses, including receipt scanning and spending limits for each employee.
- Time tracking: Xero integrates with time-tracking apps enabling you to track billable hours and project costs.
- Payroll: Xero payroll lets you manage employees, make tax calculations and pay your employees directly within the Xero platform. However, if you already use another payroll software, it’s likely that it can be integrated with Xero.
- CRM systems: Integration with CRM systems such as HubSpot allows you to synchronise customer and sales data, providing a view of customer interactions, invoicing, and payment history.
- Debtor management: There are apps that allow you to see at a glance who owes you what. This helps you stay on top of outstanding invoices, send customised automated reminders and track payment statuses.
- Inventory and manufacturing management: There are apps to connect to buying platforms that push inventory data onto the shop floor. This allows you to track production costs, allocate resources, and ensure optimum inventory management.
- Specialist software: Xero integrates with various specialist software catering to industries such as construction/trades, education, retail and hospitality. This can help to automate many aspects of your business and benefit from greater efficiency.
Cost-effective cloud accounting software
Xero offers a range of subscription plans to suit different business needs and sizes, from small enterprises to large organisations.
The pricing structure includes tiered plans with varying features and user limits. While the exact cost depends on the specific plan and any additional add-ons or integrations, Xero pricing is transparent and based on a monthly subscription fee.
Get in touch with our bookkeeping accounting software experts
At Archimedia Accounts, we are highly experienced in bookkeeping and Xero accounting. While many accountants use Xero accounting software, what sets us apart is our keen understanding of the apps that work with Xero to make it even more powerful.
If you have never used cloud accounting software before, we can set up a Xero account for you and steer you towards the features and apps that best support your business.
If you use other accounting software but are keen to move to Xero, we can help you make the transition.
Contact us today to arrange a consultation and start your journey to more efficient, accurate and easy bookkeeping.
Conclusion
Xero is a leading cloud-based accounting software solution which is accessible on any device, anytime and offers live financial reporting.
It simplifies bookkeeping tasks, offering automated bank feeds, easy invoicing and expense tracking. With the ability to integrate with various apps, Xero provides a comprehensive solution for managing finances, payroll, inventory, and more.
By using Xero, small businesses can streamline their business operations, save time, enhance accuracy, and make informed decisions to prosper and grow.
