Xero is an online cloud accounting software, which means its accessible through the internet, rather than having to physically install it on your computer.
Xero originated in New Zealand back in 2006. Today, Xero they’re a major player in the cloud accounting game and they lead the New Zealand, Australian, and United Kingdom cloud accounting markets. Globally, there are more than 2 million subscribers that use Xero.
Find out our top reasons why Xero is your best choice when it comes to cloud accounting software.
The top 14 benefits of using Xero
1. There’s no need to store files on your computer with cloud accounting
Cloud computing means that everything is stored, of course, in the cloud. So you don’t need to worry about your files taking up huge amounts of space on your computer as everything is saved safely on the cloud.
This also means that if your computer is lost, stolen or damaged you’ll still have access to all your accounts through the cloud.
2. You can handle your accounts, wherever you are
Because your files aren’t stored on your computer, it means that you can take care of your accounts wherever you are, on any device. You’ll always have safe access to your accounts wherever you are.
3. It’s safe and secure
One of the main concerns around cloud computing is whether or not it’s secure. The simple answer is: yes, Xero cloud accounting software is secure. Why? Because Xero stores your data securely online and encrypts it using industry standard data encryption. The servers your data is stored in also have a high level of physical security.
Like any cloud accounting software, the company’s reputation hangs on whether or not they can guarantee that your data is adequately protected. So it’s in Xero’s best interests to maintain the highest level of security to protect its customers.
4. You can enjoy free product updates
Another benefit of cloud accounting means that you get to enjoy the latest, most up-to-date versions of Xero. Xero is a subscription service, as opposed to a product you download from a disc or from the internet. This means that so long as you’re a subscriber to the service, you’ll always have the latest version. Unlike a downloaded copy, where you need to pay every time a new version is released.
5. It makes collaboration easy
Gone are the days of hard copies and faxes. Xero makes collaboration between businesses and their Bookkeeper, Accountant or Financial Adviser easy and straightforward. Because Xero is cloud-based, it also allows real-time updates. So you and others can look at the same information at the same time from different locations.
Security also comes into play here as well, as you’re always in control of who has access to Xero and what they’re able to do in Xero.
6. You can upgrade as needed to suit your business needs
Xero offers three different subscription levels that mean you can choose the plan that suits your needs and budget. You may begin with the Starter package, but as your business evolves and grows, you may find that you need to upgrade to the Standard or the Premium package. This gives you control and flexibility when it comes to using the service that most suits your needs.
7. It’s user-friendly
Xero is compatible with both Windows and Mac operating systems and has been designed with the user experience in mind. The modern user interface is a big selling point and the way things are laid out and organised is practical and ergonomic. While it can take some time getting used to at first, there are online courses available that can help give you an introduction to Xero so you can make the most of this cloud accounting software.
8. It can take care of invoices and quotes
You can send invoices or quotes directly to clients through Xero, and you can also create customised templates. Clients can even make payment directly from your invoices. By using electronic invoices rather than traditional hard copy invoices, you can put yourself in a position to be paid faster.
9. There’s a huge variety of add-ons you can download for a more customised approach
With a huge variety of different add-on applications, you can create a totally customised Xero experience that suits your business’s needs. You can view these available add-ons in the Xero Marketplace, and new add-ons are being developed all the time.
10. It makes currency conversion a snap
Xero allows you to accept payments and receive bills in different currencies. You can also send invoices and quotes in different currencies. This means no more worrying about converting exchange rates.
11. It can take care of payroll
Xero can make taking care of payroll simple and easy. Not only can it be integrated with payroll partners like Deputy, but employees also have access to payroll through the employee portal. This means employees can lodge time sheets, view their payslips and income statements and apply for leave all in the same place.
12. You can easily customise the reports you run
There are dozens of ready-made reports that can be implemented through Xero, but you also have the ability to customise these reports to better suit your needs. And it doesn’t matter whether you need to run these reports yearly, quarterly or twice a day – you can run them as often as needed.
13. You can link your bank account for automatic updates
Instead of manually having to import bank statements into Xero, you can directly link your bank account to Xero and automate the entire process, saving you time.
14. It can streamline your accounts payable
Xero allows you to set up automatic payments as well as repeating payments. You can also make payments in batches. You’ll never miss another payment ever again.
Learn how to get the most out of Xero
Open Colleges has teamed up with The Career Academy to bring you the Certificate In Xero short online course. This course will teach you all the basics of Xero so you can make sure you’re getting the most out of this cloud accounting software.
Whether you’re a small business owner or a financial professional, this course will help you better understand the features of Xero and how it can work for you.
Enrol today and start studying.