What Xero accounting software can do for your SME
An accurate accounting system is essential to a successful business. In the absence of this, businesses would have difficulty chasing accounts payable, paying employees, and filing accurate taxes. However, manual spreadsheets and outdated software can make getting it right tedious.
One of the most popular options for managing your small business finances is Xero accounting software. Xero leads the accounting software industry with more than 2.75 million active subscribers, and we're big fans of the software at Zyla Accountants and it’s used by the majority of our client base to support their business requirements.
Our article showcases six ways Xero can improve your small-to-medium-sized business' financial management.
XERO: WHAT IS IT?
Xero is an accounting software that can handle most of your accounting needs, regardless of your business type or size. The program can help you manage your cash flow, build financial reports, track your income and expenses, manage your payroll, and even keep track of your inventory.
Xero is a user-friendly software that can be customized to meet your specific needs without the need for IT skills. Business leaders can better understand their companies' financial health with its many features and add-ons.
Why is this accounting software so beneficial to SMEs?
ENHANCE YOUR PRODUCTIVITY
Xero allows you to automate time-consuming processes, allowing you to focus on other aspects of your business. In small businesses, where human resources are scarce, and time is one of the most valuable commodities, this is of particular importance.
This software handles bank reconciliations quickly and efficiently, resolving any emerging problems quickly and efficiently to protect your cash flow. To maximize efficiency, companies can use Xero's integrated tool for reviewing and matching transactions.
Automating other processes besides bank reconciliation is also possible. Leaders can automate online invoicing, payments, and banking feeds.
ANYTIME, ANYWHERE BUSINESS MONITORING
Running a successful business requires you to monitor your business numbers constantly. Your company's activity (or your personal obligations) may require you to be on the road frequently, which can often lead to employees being chased.
Invoicing and payroll can be managed on the go with Xero, since you can access your financial data anywhere. Businesses can access their accounting software from a variety of devices, including desktops and mobile platforms.
The trend of cloud-based accounting is clearly not one you want to be left behind, as 58% of SMEs have already switched.
TAKE CARE OF YOUR TAXES
Due to its complexity and time-consuming nature, most business owners would prefer to avoid company tax if possible. As two-thirds of UK-based small businesses struggle to pay their tax liabilities every year, we cannot avoid tax obligations at all costs. However, Xero is here to help!
Xero can help you stay up-to-date on the latest tax laws and streamline your tax filing process. Accounting software helps companies stay on top of their finances and pay the right amount of tax.
Paper-intensive tax returns can be eliminated with digital tax returns. Furthermore, the Making Tax Digital initiative has now made digital tax returns mandatory for all VAT-registered small businesses in the UK.
YOUR FINANCIAL DATA IS SECURE
There is a complex encryption system embedded within Xero's platform, like most secure accounting software. The security of financial data can give business owners peace of mind.
With its market leader status, Xero's systems are constantly monitored to ensure continuous security features. Through the software, business leaders are able to control access to their financial data, with permission layers that can be easily revoked.
The cloud-based platform of Xero helps prevent data loss and human error from occurring to your financial data. The company's security system eliminates the need for only one source of financial data, creating a history of transactions that can be tracked regularly.
TAILOR THE SOFTWARE TO YOUR NEEDS
Xero is known for its incredible flexibility. Using its tailored add-ons and wide range of plans and services, you can tailor the software to your business's needs. No matter what industry you're in, whether you're in e-commerce, technology, manufacturing, or agriculture, this will help you adjust your plans and features to scale!
Over 800 add-ons will be available in Xero's marketplace, which will allow you to select the features that are most beneficial to your SME. There is no limit to how much of your accounting function you want to automate - you can automate some or all if you wish.
INVENTORY MANAGEMENT AND SALES TRACKING
Another important feature of Xero is its ability to track sales through integrations with online marketplaces such as Square and Shopify. Additionally, Xero allows you to create purchase orders within the system, sending them directly to your suppliers, eliminating unnecessary steps.
With a number of add-ons, the software can help businesses manage their inventory by linking to other inventory tracking software, ensuring they never run out of product. For small and medium-sized businesses, ensuring they don't miss out on potential customers is increasingly important as stock shortages and supplier issues continue to cause disruptions.
Through its comprehensive financial data management platform, business leaders are able to track sales numbers easily and identify the most profitable products.
WRAPPING UP
It can be difficult to find the best solutions for your business needs, but it is a process that will certainly prove worthwhile. With Zyla Accountants, you can find the right plan that meets your organisation's needs and get you set-up and trained ready for your business.
Contact us today if you would like more information about our accounting services, you can schedule a call with us through our website. Zyla Accountants offer a hands-on, jargon-free and refreshingly flexible approach to accounting. Our experienced accountants deliver clear-cut support to start-ups, SMEs and social enterprises to help you focus on what you do best.