As an accounting firm that believes in the future of tech, we have decided to showcase a few of our favorite software and of course, Xero Accounting Software is top of our list. Here are the top features of Xero but first a basic explanation.
What is Xero?
Xero is an accounting software that a business can use to put together the financials together. Competitors include QuickBooks Online, Wave, FreshBooks and Sage. Which are all great software in their own right. We have seen many clients benefit from using Xero for their businesses.
Top 10 Features of Xero
- User-friendly interface: Xero has a clean and straightforward interface that makes it easy for you to navigate and understand your financial information. Xero has been made from the ground up with it’s interface in mind. It was built with thoughtfulness and its layout is part of the reason its often uses a #beautiful. We often say to clients that accounting software are like Android vs iOS. We like the others and they get the job done, but we love being and using Xero.
- Automated bank feeds: Xero syncs with your bank accounts and automatically imports your transactions, saving you time and reducing the risk of errors. In Canada previously we have had to use Yodlee feeds which are third-party feeds. As with all software using third-party feeds has been causing issues over the last two years with increased bank security. In the balance against this, now more and more banks are signing on to having direct feed integrations with Xero. This will ultimately mean an even greater connection allowing you to pay bills from your bank that you have pulled in from Xero and more. In addition, to a solid bank feed connection.
- Multi-currency support: Xero supports multiple currencies, making it a great option for businesses that operate internationally (Premium subscription is required). In Canada, the transactions are required to be converted to Canadian currency at the time of the transaction. Xero does this seamlessly behind the scenes and you can also send invoices in other currencies (such as USD). It all handles it behind the scenes for the calculation of your expenses and any foreign currency losses/gains.
- Invoicing and billing: Xero allows you to create and send professional invoices, set up recurring invoices, and track payments. The invoice and billing area actually are comprised of a lot of features within it. All are designed to get you paid faster, help manage cash flow and track your finances while also building your business with beautiful software.
- Expense tracking: You can easily track expenses and receipts in Xero, making it easier to manage your finances. (This one is an add-on as well but has a solid basic-level approval workflow).
- Mobile app: The Xero mobile app allows you to access your financial information on the go, making it easy to manage your finances from anywhere. You can even reconcile your bank accounts and send sales invoices from the app.
- Collaboration: Xero allows multiple users to access the same financial information, making it easy to collaborate with your team or your accountant. Part of our year-end engagements includes a bi-annual check-in. We hop into the software and review to see where your year is at. Then we let you know if there are any required adjustments to the tax plan from the prior year or any noted concerns. These check-ins are an important part of helping our clients avoid being caught unaware of a pending tax situation.
- Reporting: Xero provides a range of financial reports, including balance sheets, profit and loss statements, and cash flow statements. The ability to edit these and create custom reports for our clients is amazing. However, there are a lot of provided template reports as well.
- Integration with other apps: Xero integrates with a range of other apps, including payroll and time-tracking software, making it easier to manage all aspects of your business. If you have a café, you may want to integrate your Square POS or other POS system. This then allows your sales transactions to automatically be imported into Xero. If you use another point-of-sale software, or project management software already, you may want to check as Xero may have integrations set up for that as well.
- Customer support: Xero offers excellent customer support, including a comprehensive knowledge base, a community forum, and live chat support.
Are we Xero Crazy?
It could be. And don’t get us wrong we love cloud software in general and a lot of the benefits above are not just Xero-specific but are cloud accounting software benefits. We do work in Xero every day and there are many reasons why we have chosen it as the software we use for all bookkeeping engagements (we are agnostic on the year-end side).
We love Xero and are Gold Partners which means we get to play around in Xero a lot. It is feature-rich and user-friendly accounting software that can help you manage your finances effectively. As we said, these are the top features of Xero but you may have your own list once you give it a try. Whether you’re a small business owner, freelancer, or accountant, Xero has everything you need to manage your finances with ease. Give it a try and see for yourself! You can sign up for a trial here.
Virtual Heights Accounting is a CPA firm that operates in the virtual world. We provide virtual accounting, tax, Virtual CFO and Controller services for your growing Company. Contact us at www.vhaccounting.ca/contactus or follow our blog on your chosen social media source. This blog is intended for general use and understanding and does not replace direct professional advice.