If you are starting a new business, the most daunting task will be setting up a system to track your income and expenses. Fortunately, Xero accounting software allows streamlining of accounting in a way that is tailor-made for start-up businesses.
Is Xero The Best Accounting Software For Start-Up Businesses? Xero is indeed the best accounting software for start-up businesses. It is recommended by colleges looking to introduce their students to accounting. Xero streamlines processes such as creating and sending invoices, inventory management, payroll and other critical accounting tasks .
From its invoicing features and cloud-based accounting to its ability to integrate with third-party software, track ROI, streamline payroll, track inventory, and more, Xero is a top-choice. I have provided you with a detailed discussion of what features make Xero so reliable for start-up businesses.
Xero’s Invoicing Features
Xero accounting software contains features designed to be user-friendly for those not experienced with sending customers invoices. This is often the case with owners of start-up businesses.
Personalize Your Invoices And Give Your Company A Professional Identity
Xero allows you to give your business a professional identity by providing the ability to personalize sales invoices.
Invoice set-up features include:
- Invoice Design Templates
- Branding themes
- Upload Your Company Logo
- Payment Terms
Cloud-Based Accounting Software of Xero
Xero accounting software is online and cloud-based. This allows users to automate daily business tasks and view their financial data in real-time from anywhere.
There is a Xero app available for iOS and Android. You can manage invoices on the app. One of the neat features of the Xero mobile app is the manage contacts feature.
The manage contacts feature allows users to personalize the information related to contacts or customers. You can view the average amount of time it takes them to pay invoices and view invoices and payment history.
Other information displayed in the desktop application includes bank account balances, profit, and loss, cash flow, outstanding invoices, running payroll, and bills that are due.
You can learn more about the Xero mobile accounting app here.
This article from the Ohio University Online Master Of Accountancy program recommends Xero accounting software for first-time users because the simplified user interface makes things easier for those with little accounting knowledge.
Xero and Third-Party Integration
Xero accounting software offers third-party app integration to enhance the functionality of the software.
These third-party apps help you perform tasks such as file sharing, payroll, and payments. Xero offers users with more than 300 business apps integrations whereas QuickBooks integrates with about 60 different apps.
Keep in mind that only those with the adviser or standard user role within the Xero accounting software program can connect to and manage third-party apps. If your role within the accounting software is a cashbook client or managed client user, you will need to ask your adviser to set-up third-party integration for you.
This is positive because it means that you have control over who in your business has access to the programs offered within Xero accounting software.
Xero Accounting Software Is Popular Among Students
To drive home the point that Xero accounting software is a good choice for first-time users and start-up businesses, consider this web page from the University Of Maine on Information Systems & Technologies.
The purpose of this resource is to provide small businesses with information on major systems to potentially reduce costs and increase efficiency. The University Of Maine Business School recommends Xero accounting software as user-friendly and affordable. In fact, it was mentioned as the best value for your money in Business News Daily.
Xero Offers Automated Bank Feeds
One of the hardest parts of running a business is staying on top of your bank transactions. Xero accounting software automatically imports transactions from your bank or financial organization directly into the program. This feature helps eliminate the need for you to manually import transactions.
You have multiple options when it comes to which feed you want to use to import banking transactions:
- Direct feeds from your bank/financial institution
Easily Track the Profitability of Each Project
Another feature of Xero accounting software that makes it well-suited for start-up businesses is the capability to monitor and track the performance of your business in real-time.
The project summary report allows you to pull up a basic financial summary of a specific project.
The information displayed allows you to estimate the time a project takes to complete and the costs of the project. Xero accounting software allows you to link tasks such as travel and expenses such as new equipment to project costs.
Being able to easily track where every cent of your money goes from the get-go is critical. This is especially important for start-up business owners who are unfamiliar with the principles of accounting.
Another major business expense made easier by Xero Accounting software is payroll.
Xero Accounting Software Is Designed To Streamline Payroll
Xero Accounting software is designed to streamline payroll, which is often one of the more daunting tasks for start-up businesses.
Keypay is one of the third-party apps that can be integrated into your Xero accounting software package.
This application helps streamline the payroll process by:
- Being able to provide employees with their own log-in to access timesheets, manage leave and view view rosters.
- Taking care of most compliance tasks such as Super Choice and Single Touch Payroll
- Automating payruns with no touch payroll
There are a few aspects of running a business that can become more complicated than taking care of payroll as you have to consider timesheets, pay slips, compliance, and payroll tax.
Fortunately, Xero has streamlined these tasks with the integration of the third-party payroll app, Keypay.
Stay Fully Stocked With Xero’s Inventory Management Feature
Xero comes equipped with an inventory management feature. This allows you to track both inventory stock value and quantity in real-time.
As a start-up business, proper inventory management is essential. This can become one of those important tasks that escape your grasp as you focus on tasks such as marketing and payroll.
Xero has you covered by providing you with the ability to:
- Track stock levels and values
- Calculate the value of goods you have on hand by using the average cost method
- Import large numbers of inventory from a spreadsheet. Xero software comes with a CSV template built-in
You can also upload photos into the program to provide you with a visual reminder of your stock.
Xero Makes It Easy To Keep Tabs On Outstanding And Overdue Balances
Start-up businesses start to unravel when they fail to track money owed to them or the money they owe.
Xero accounting software allows the user to view their contacts list separated out into three convenient groups:
A contact list including contact information and account balances.
The features of Xero accounting software allow you to view which contractors owe you or you owe money to. You also have the ability to send invoices to customers or apply discounts to quotes.
Where Can I Buy Xero Accounting Software Resources?
You can find the mobile app for Xero on the iOS and Google Play app stores. The web-based version of the software can be found on their website here.
You can also learn more about Xero accounting software by purchasing one of the following books:
- Xero In Easy Steps: Making Business Accounting Simple
- This book comes complete with detailed images and instructions that show the user how to take advantage of all the features of the software.
- Xero For Dummies
- This e-textbook will show you how to set-up the software from scratch and teach you how to utilize all of the software’s features