Benefits of Xero as Your Business Accounting System
For any small business, doing the books and ensuring that you are on top of cash flow entails a lot of time and effort that sometimes, other tasks get neglected. Not so long ago, desktop-based accounting systems made things easier. However, they are now considered “traditional” accounting systems due to their limitations.
Today, cloud-based accounting software is the preferred accounting and bookkeeping tool for small businesses and professionals alike. In this article, we feature Xero, one of the popular cloud accounting software around the world, and how using Xero can help your small business achieve financial success.
What is Xero?
Xero is a simple, smart, and secure cloud-based accounting software that traces its roots in Australia and New Zealand. The software is designed with small businesses in mind. Hence, Xero is renowned for its easy-to-use interface and add-ons integration. Here are more reasons why you should consider using Xero:
Software Accessibility - Anytime, Anywhere
One advantage of cloud-based accounting software is that you can easily access data and information anytime and anywhere around the world with your device. You can collaborate with your staff and accounting partners even if you are on a remote island and ask them for advice.
Bank integration for continuous data feeds
You can integrate Xero with your credit card and bank information so that you will get updates on a daily basis. This is a huge time saver for data entry and bank reconciliation time. With Xero, bank information retrieval is just within five minutes and you can be sure that the data is in real-time.
Data security and regular back-ups
Even if businesses consciously make an effort to back-up their files on a regular basis, there are still instances that they forget to do it. Xero regularly and automatically backs up your files and data so that you won’t have to worry about losing important information. However, it is also important that you must have a copy of your data on a quarterly basis at a minimum depending on the volume of your entries.
Integration with other apps and add-ons
Xero is designed so that other web system developers can write their systems and integrate it with Xero. This means that you can access your CRM, inventory, POS, e-commerce, time tracking, and others with your accounting records, thus no duplication of databases and missed sales conversions.
Easy-to-use interface and dashboards
You will have a real-time view of your business in a simple and easy-to-manage dashboard; here, you will see your balances, cash flow, etc. Moreover, this will be helpful to you if you have accounts in different banks — you won’t have to log in to your accounts just to access them.
These are just some of the reasons why small and medium businesses are integrating Xero into their accounting system. If your business values time and is looking for a long-term operations investment, Xero is a good choice.
This article was first posted 05 August 2014 and edited 17 March 2021.