What is Xero Accounting and Why Does Your Business Need It?

FinTech news is currently saturated with articles about the next great app that will help startups and SMEs take control of their finances. This noise can get a little overwhelming, but amongst experts there is a clear favourite – a certain software which is taking the FinTech world by storm.

In 2009, Xero, the cloud-based accounting software for small and medium-sized businesses, won two Webby Awards for its world-class usability and design. Since then, Xero has accumulated over 1.2 million subscribers, and been identified by Forbes as the World’s Most Innovative Growth Company.

Xero have started a new wave of accounting practice that is redefining the way in which modern enterprises manage their finances. The principles behind Xero are simple: clarity, usability, flexibility. Through the help of xero accountants, some of whom include the software as part of a fixed price package, you can resolve the issues which have been making the lives of business owners unnecessarily complicated.

What is Xero accounting?

Xero is a financial collaboration app that has gained international repute. The system meets the requirements of small businesses regardless of its industry, as the software enables the latest business numbers to be shared with accountants over the cloud. Offering invaluable features like real time access to emerging business information has resulted in this online accounting system becoming renowned for its ease.

The software enables your business to import initial setup data, as well as daily transactions like journal entries, customer invoices, and vendor bills. Key features of Xero include automatic bank and credit card account feeds, invoicing, accounts payable, expense claims, fixed asset depreciation, purchase orders, and standard business and management reporting.

Xero could improve your experience of business accounting on several fronts:

  • Record keeping is transformed, as all transactions and contracts are governed from the same page.
  • Transactions are simplified, as purchase files can be edited within seconds and form templates are offered.
  • Invoices can be digitally categorised.
  • Financial fraud is warded against by a multiple-approval model and two-factor authentication.

Essentially, Xero will fulfil a business’s financial requirements without any of the hassle of older accounting methods. It’s no wonder that this software now leads the cloud accounting markets in the UK.

Xero is easier for both accountants & business owners

Xero allows accountants and bookkeepers to collaborate with businesses online. Both can simultaneously login to Xero and work together through the cloud. That way, a business might enjoy the ease of automatic bank feeds, effortless invoicing, and convenient flexibility at no extra cost. Xero can also be partnered with other accounting systems and third-party apps.

So far, nearly half a million business and sole accountants have confirmed Xero’s status as a worthy contender in the market of accounting software. Accountants can help to make sure that Xero is working for your business. They will use their knowledge of the software to carry out your accounting and tax work as smoothly as possible, all the while helping you tailor the services provided by Xero to your specific needs.

The advantage of Xero is that it simplifies processes, while being adaptable

Even accounting novices can manage with Xero. Complex, standardised financial concepts are simplified and made accessible. For example, Xero have managed to make age-old accounting traditions like double bookkeeping more conductible to non-expert users.

The software can adapt to suit the needs of an individual business. Not only will Xero allow you to grow as a business, it will also adapt to a business’s needs as it grows, allowing you to build in features and add-on apps accordingly.

Xero offers its users an unrivalled flexibility in how and when they manage their accounts. It allows logins from any internet connected device, meaning that accounting can be done from a Mac, a PC, an iPhone or an Android. It also facilitates international accounting – connecting you to over 5000 banks globally and allowing transactions in over 160 currencies.

Xero embodies a new age of accounting. Pencil kept records in A2 sized journals emblematize a financial system of the past. Now, a single application will be all that you and your accountant need to manage the finances of your business with care, ease and efficiency.

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