Full Accounting Solution using Xero Accounting Software

Streamlining your accounting process for your business requires that you take into consideration a number of things. Most important is the software that you have been using for quite some time to avoid falling into a rut with it hence complicating your accounting output. Xero accounting software and QuickBooks Online are well known cloud-based accounting software competitors used by many businesses today. Currently, most businesses are using these systems to manage business finances and enjoy the benefits. It is good that you embrace the same trend for your business and take time to weigh your options. There are many pros to Xero software and the few cons do not hinder its usage in anyway. We will discuss the pros and cons of using Xero accounting software to manage your business.

 Pros of Xero accounting software

• It is time and cost effective because of its ability to manage elaborate and complex accounting tasks, for example, fixed assets and depreciation. This reduces the time needed to have reports done. It also reduces the number of employees needed to carry out these tasks. It is termed as ‘one time task’ by those who have used it.
• It allows the user to create customized reports. The user is not restricted to the specific rails of the software. Its real time data becomes vital for those who are interested in staying updated with the cash-flow situation of the business at all times. Updates of the software happen automatically. The software checks for recent updates when you log in and will automatically update itself to the latest version available. This means that you are using the latest version any time you are logged in. New versions come with new and efficient capabilities. You do not pay for the additional updates.
• It is full of accounting solution package comprising of all traditional features such as aged accounts receivable reports and charts of accounts. General ledgers are also available.
• It is very easy to use and the menus are well understandable.
• All accounts are setup to import from the financial institutions. This means that when you are adding transactions you are also reconciling as you go. Your book balance matches your bank balance.
• Very quick operations and a nice user interface. There is also a mobile app that works on tablets.
• Multiple users without additional costs. Your accountant, your bookkeeper and your staff can have access to your file without incurring additional costs.

 Cons of Xero Accounting Software

Despite the fact that this software has so many features to appreciate, some few hitches have been reported by past and current users. These queries forms a basis for upgrading the application and the support team is currently working hard to have the problems solved as soon as possible.

• Some users complain that getting a bank feed is at times very slow. This becomes hectic when urgency is wanting or you are in a rush. It can take a couple of days for it to show in Xero.
• Others complain that it has weak multicurrency capabilities. This affects the reporting system in that flexibility in reporting is missed.
• Lack of job costing and limited reporting in depth inventory which requires that you use a third party application. Good to appreciate that these two cons are being addressed.
• There isn’t the ability to group items for invoicing purposes.
• The review of transactions is handled through reports as any user with permission can enter the transactions and code them accordingly.

Just to build confidence, the use of Xero offers the user a good experience and it a good choice for those preferring to keep the finances of their businesses in the cloud. As a business owner it is important to look at both the pros and cons of implementing Xero accounting software for your business.

If you would like an in depth analysis for your company and it’s accounting system, please click here to visit our sister company and get a free initial consultation to discuss your bookkeeping needs.