I’d like to introduce you to Xero, my favourite bookkeeping app. Xero is an easy-to-use and powerful online accounting software with everything you need to run your business beautifully.
Xero was created in 2006 in New Zealand and now has 3m+ subscribers globally. Most bookkeepers love to use Xero for its seamless functions and beautiful design.
However, as amazing as Xero is, it still needs a professional bookkeeper to operate it.
Just like the skill of cutting hair lies in the hairdresser’s knowledge and experience, not in the pair of scissors, Xero (or any bookkeeping app) is exactly the same. Xero cannot actually tell if the data entered is accurate – it is just a machine that is not capable of artificial intelligence. This is where a bookkeeper’s skill and knowledge is critical.
What Xero can do for your business
Xero is a beautiful app to use and has so many features to transform the way you do bookkeeping.
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- Allows you to connect secure multiple bank feeds that downloads transactions daily from your bank accounts
- Helps you to improve your cash flow
- Allows you to invoice customers easily and on the go using the Xero App on your smartphone
- Allows you to accept online payments (e.g. Stripe, GoCardless plus others)
- Has a complete Payroll Management Centre (for specific plans)
- Tracks your employee leave entitlements
- Tracks your employee super entitlements
- Allows you to lodge your Single Touch Payroll obligations
- Enables you to create customer quotes and turn them into invoices
- Allows you to see how your business is performing at any given moment
- Allows you to track project costs and profitability
- Tracks your GST paid and collected
- Allows you to generate numerous types of reports (example: Statement of Cash Flow, Profit & Loss, Project Costs, Payroll Activity, Payables, Receivables, etc)
- Allows you to connect to numerous 3rd party apps for numerous industries to amplify your efficiency and financial visibility
- Plus so much more
What Xero cannot do for your business
Xero does have its limitations (like any bookkeeping app) as it’s only a program, and not a person.
Here is what Xero cannot do.
Xero cannot tell if the data that you enter is correct or being posted to the right spot. Example: What is the correct account to record a computer purchase?
- a) Expense
- b) Asset
- c) Liability
- d) Revenue
- e) Equity
Xero cannot tell what the correct GST code is. Example: What is the correct GST code for Interest Paid?
- a) GST
- b) GST Free
- c) BAS Excluded
- Xero cannot tell if the financial reports you are generating are correct or contain critical errors that only a qualified bookkeeper or accountant can pick up on (e.g. negative liabilities, out of balance accounts, etc).
- Xero cannot tell if you are paying your employees the correct amounts
- Xero cannot tell if you have selected the correct Income Tax Withholding Type for your employees
- Xero cannot tell if you have selected the correct Award for your employees
- Xero cannot tell if the BAS Report you have generated is correct or contains critical errors
I hope you’ve enjoyed reading about the benefits that Xero can have for your business. If you are looking to move away from manual bookkeeping and save time and headaches PLUS get complete visibility of your financial numbers, NOW is the perfect time to consider moving to Xero.
We love helping small businesses adopt new technologies and offer Free Consultations to walk you through what it would take to switch over to Xero and how this can benefit your business.
To take up this offer, CLICK HERE to book your Xero Discovery Session today.
