Let’s say you’re startup company is now working efficiently. Your products are selling; your employees are already well equipped and ready to do their job; your customers are coming in left and right. How do you manage all the cash coming in and out of your business without getting a huge migraine? That’s where Xero comes in.
What is Xero?
Xero is a software that lets you do the accounting of your business transactions online! It can let you send customized invoices to your clients through your mobile devices so that you can get paid right away. It also keeps track of your inventory of products so you won’t have to go through the hassle of having to call your people to confirm the amount of products available for sale.
It also has a bank reconciliation feature where your latest banking, credit card, and paypal transactions are recorded and categorized. This lessens the hassle of manual bookkeeping of your company expenses and revenue. The software also has a feature where you can contact their in-house accountants and bookkeepers that can help you if you’re having trouble with what to do. They have already incorporated the different modes of payment in their system as well. All your bank records are also updated in real time so you can always keep track of your cash flow anywhere you are.
Multi-currency payment is also possible due to their up-to-date exchange rate values. Xero also offers a payroll feature that allows you to send your employees’ salaries with just a click of a button directly to their bank accounts. Xero calculates the payroll, manages taxes, and gives you a detailed report of your wage expenses. You can also schedule your company’s payments, like your monthly subscriptions and such.
What makes Xero truly impressive is that it integrates all your accounting, banking, payroll needs into one application. You won’t have to manually keep tabs of all your expenses and revenue, human error is thus avoided. And not only that, it’s mobile responsive so you can access it through your laptop, phone, and tablet anywhere, as long as there’s internet. You can pay and get paid quickly and with less hassle. Its accessibility gives your company an added advantage if your clientele scope is global.
This tool is not free, but with all the encrypted information it contains and amount of work it does, you won’t expect it to be. Xero has a 3-tier pricing scheme that you can choose from depending on what services your company requires. Its starter plan is $9/month with all the main accounting features, but the catch is you can only send 5 invoices, send 5 bills and reconcile 20 bank transactions per month.
With $30/month, you can avail of the standard edition which has all the features of the starter plan but with send unlimited invoices, bills and reconciliations. You also have the use of the payroll feature for up to 5 employees. The most expensive is the premium edition which costs $70/month with all the features of the standard plan with an addition of 10 employees to the payroll instead of 5 and a multicurrency support. The plans are not limited to those mentioned. Some larger businesses customize their plans to add more employees in the payroll.
However, like all things, it also has some set-backs and bugs that can make you a little hesitant in subscribing to it. When using the tool, it can be a bit daunting because the dashboard is very busy and if you’re not familiar with accounting jargon, the software can be hard to navigate. However, if you’re the type of person who can pick up and learn quickly with these kinds of technical tools, you’ll have no problems with it.
Some have also stated that their mobile app is virtually useless because it doesn’t have most of the features found in the website. This can be a problem for you if you move around a lot and only have your smartphones or tablets with you. The Xero app may not be as easy to use as other accounting applications. Still, you must keep in mind that some of the other competing apps are not cloud-based so only a few can access your system simultaneously. But, being cloud-based can also serve as a problem too when it comes to the safety of your accounts. Although Xero boasts of data encryption that’s similar to online banking, users have doubts as to how safe they can be. If you can trust online banking to protect your accounts then you can also trust Xero with the same protection they offer.
There is also no negative inventory support, if you think this is relevant for your business then you may find this to be a problem. Lastly, the most common problem people have mentioned with Xero is their customer support. They do not have a hotline or any fast way of communicating back to you when you need their help. Instead you may need to resort to lengthy emails that usually don’t come fast enough. If you can overlook these glitches, then Xero is the tool for you.
In conclusion, Xero ticks all the boxes needed when it comes to accounting and bookkeeping for your startup business. If you find it hard to work with, hire a someone to figure it out for you, a virtual assistant who can do the job well. Also, you must keep in mind that with all things, there is a relative risk involved because not all systems are perfect, so if you think Xero has everything you need to keep your finances in check, then try it out. If you’re still hesitant, don’t worry, they offer a 30-day free trial so get a feel of it first and see if the shoe fits.