Xero small business software: all you need to know

You’ve heard of the Xero online accounting software before, but how do you know if it’s the best solution for your business?

POP Business has helped many clients to make the switch to Xero, so we’re well positioned to tell you how it really works. To help you decide if it’s the right tool for your business, we’ll cover the benefits of the Xero accounting software and go through some things to bear in mind before you move forward. 

What is the Xero accounting software?

What is Xero Software?

It runs on the cloud, which means there’s nothing to install and everything is backed up automatically. All you’ll need to use it is access to the internet and a device like a computer, laptop, iPad or even a mobile phone.

Xero is designed to track all financial aspects of your business  including invoicing, bank reconciliations, managing taxes, paying your employees and much more. It does this through a range of connected apps. It also gives you real time information on cash flow and other important aspects of financial performance.

Apart from the money side of things, Xero’s app marketplace has a wide variety of business apps to improve your operations too – like point of sale, CRM, job tracking and inventory, just to name a few.

How does the Xero accounting software work?

xero small business software-1

Being a shared cloud platform means you can do your finances and run your business on any device. It doesn’t matter if you use Macs, PCs, or both – everyone can use it.

What’s more, the software can be used by multiple user at the one time, regardless of each user’s location. This means if you have staff  working from different locations there won’t be the need to send documents back and forth to one another.

Xero also has mobile apps that work on Apple’s iOS and Google’s Android operating systems to make doing business on the go a breeze. 

While the Xero accounting software connects to apps within its ecosystem, it joins up with external sources such as your bank account, allowing transactions  to be completed quickly without manual data entry.

Why use a Xero accounting software?

Although we have already highlighted some of Xero’s key benefits, it can potentially do a lot more for your business. 

Xero accounting software pros and cons

Here are some exciting possibilities:

  • Choose how to run your business. With 800+ apps available, you can pick the ones you need to customise the software. There are business apps in addition to financial tools, so all aspects of your operations are looked after. 
  • Reduce repetitive tasks and save time. The ability to download or connect to bank feeds eliminates the need to type things in manually, which frees up admin time and reduces data entry errors.
  • Quick invoicing. You can invoice your customer on the spot at the end of a job if you have a mobile device. What’s more, automated invoice reminders can follow up and chase payment. These features can both save time and improve your cash flows. With better money management and improved record keeping, you’re more likely to be approved for a bank loan should you wish to expand your operations in future. Customers benefit too from being able to pay with the push of a button. 
  • Accountant and bookkeeper access. Your accountant or bookkeeper can log onto Xero and see exactly the same thing as you, which means they can provide immediate support when you have questions or need their help.
  • Cut errors by using apps. Since Xero’s apps are connected, there’s no need to enter the same data in multiple places. You fix something in one place and it’s fixed everywhere – this reduces the possibility of human error.
  • A single source of truth. Working on a shared platform means everyone can access the same information for better decision making. 
  • Grows with your business. Xero allows unlimited users so you can scale up and add more people to your account as business expands.
  • Better record keeping. With the ability to scan receipts, issue invoices and drag and drop files, you can easily store and organise business records for quicker retrieval.

In terms of drawbacks, the most obvious one is that you can’t get the Xero accounting software free of charge. While Xero’s prices are already competitive, POP Business offer all our clients a 20% discount on their subscription to make it even more affordable and worthwhile.

Like with any other new software and systems, you’ll need to invest a little time to learn how to use it properly in order to get  the most out of it. Being a Xero Platinum Partner with plenty of experience with te software, POP Business can share our knowledge with you so you can make a quick and seamless switch. 

Who should use Xero?

Put simply, Xero is great for business owners who just don’t love spending time on admin.

Around 700,000 small businesses in Australia use Xero. They come from diverse industries – agriculture, hospitality, retail, services and tradespeople for example.

The vast number of apps offer flexibility to shape the software to suit your business.

For example, farmers can customise with agriculture apps to create their own Xero farm accounting software. Freelancers and sole traders can also choose apps to set up their Xero self employed accounting software to meet their needs.

Xero vs Quickbooks

Like Xero, Quickbooks Online is a top cloud accounting tool with a long list of 

features and reporting functionalities.

While both tools can potentially transform the day-to-day running of your business, we love working with Xero because it’s intuitive, easy to use and built with user experience in mind.  

Xero online accounting software is designed for business owners who might not know a lot about accounting. For our clients, this means being able to get started and get on top of their numbers in less time.

It’s hard to get past the advantages you’ll get with Xero’s add-ons as well. With hundreds more apps to choose from, there are more opportunities to integrate your operations and streamline your processes.

If you anticipate the need for multiple staff members to access the software, Xero grants access to unlimited users with all its subscription plans while you’ll have to pay extra with QuickBooks Online.

With so many small businesses already on the cloud, it makes sense to make the switch to stay competitive. Remember, POP Business can get you connected to Xero at a 20% discount. Not only that, we can also show you how to use the software and tailor it to fit your business needs. So get in touch with POP Business today!

Sidney Cachuela

Sidney Cachuela

Sidney Cachuela is a Business Mentor and Associate Financial Advisor who genuinely revels in solving the sorts of wicked problems facing business. His experience includes working with high profile wealth managers and financial advisers, including managing $100m of client FUM across 200 clients. In 2018 he co-founder POP Business, a cloud-based accounting firm. Sidney is a complete technophile, and believes that innovation and new tech are the way forward. POP Business is his labour of love. He has expertise in helping small businesses with a range of accounting services, including: financial advice, accounting and bookkeeping, GST tax planning, as well as company, trust and partnership tax returns and more.

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