Get to Know Xero
If you are looking for an accounting software for your growing business, you may be overwhelmed by the number of options. Without a doubt, you are aware of Quickbooks, as it is utilized by 80% of small businesses. Quickbooks has a 20-year history and many appealing qualities, such as easy online pay and accessibility for all level of users. Another option which has gained attention in more recent years is Xero. Although Xero was released 13 years ago, it is not as well-known as Quickbooks. As accounting professionals, we can see the benefit of both Quickbooks and Xero, but we want you to find the choice most suitable for your needs. Because Quickbooks is so widely known, this article will focus on the benefits of Xero so you can make an informed decision for your business.
What is Xero?
Xero is an online accounting software for small businesses. It’s a fantastic way for small businesses who are always on the move to handle their finances. With the software, your accountant will see the same data that you see.
Who is Xero For?
Xero was created primarily for small businesses. It was designed by an entrepreneur and his accountant. With the Xero package, you get all the basics: payroll, reporting, financial statements, invoicing, and expense statements.
Some of the strongest benefits of Xero include:
- Flexibility — frees up valuable time of accountants through task automation with the software.
- Easy to Set up Billing and Invoicing — Since many businesses have recurring expenses and charges, automatic recurring billing and invoicing is very simply set up.
- Inventory Management — You can manage your assets at all of your different price levels easily.
- Syncing with your Bank — You can link Xero with your bank account to ensure all transactions are dealt with smoothly.
- Affordable Monthly Cost — Xero costs $9 per month vs. $20 per month with Quickbooks. The cheaper per month cost has been a compelling reason for some businesses choosing to try out Xero.
How Does Invoicing Work?
When customizing an invoice, you must upload a template through the settings menu. This could be useful if you already have Excel invoices prepared. Xero sends automatic payment reminders on overdue invoices after 7 days. There are some options for customization through the invoice process, but it still is intuitive and simple overall.
What is the Billing Process Like?
In Xero, paying bills is straightforward, even with new bills. You can automate expenses and set up recurring bills easily.
How is the Reporting Process?
Xero provides all the basic reports: profit and loss, balance sheets, and cashflow. Additionally, an equity statement is provided which can be helpful for small businesses with several investors. The statement displays the owners’ investments, their equity, and profits and losses within the business. Equity statements are excellent protection and documentation for business owners.
Whether you choose Xero or Quickbooks, the team at Fricke CPA can help you take charge of your accounting needs. We offer professional Quickbooks support and we are a Xero Silver Partner with certified advisors. As a Xero Silver Partner, our clients receive a discount on the software cost when they purchase through our firm rather than buying directly from Xero.
We are a XERO Silver Partner, Certified Advisor
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