July 27, 2021

Adam Rawling

Do I need Xero for my business?

It all depends if you want to save time, money and real time information at the drop of a hat. However, the below will give you some idea what Xero is all about and why accountants and business owners across the world love it.

What is Xero Accounting Software?
Xero is a cloud based accounting software platform for small businesses with around 2.7 million subscribers across 180 countries.

Xero bridged the issue for many small businesses enabling them to move from poor accounting software to having an accountancy software which for once the end user could navigate with minimal accounting knowledge.

Xero users can access the software from anywhere in the world and allow data to be viewed in real time, meaning businesses can make informed decisions using real time financial data.

Many established businesses are switching to Xero from other software as the benefits are promoted from business owners and accountants throughout the world.

Is it easy to move to Xero software from another software provider?
Absolutely, there are tools out there such as ‘MoveMyBooks’ which will mean you can move your data to Xero from Sage, QuickBooks & Kashflow. This will put in a couple of years’ worth of data for free, well Xero cover the cost, any more than two and there is a charge of £60 per year.

Is Xero the best accounting software for my business?
In the opinion of DIGI, 100%. We are a Xero only practice, meaning we only use Xero with our clients. We believe it offers a friendly user interface for our clients, can assist companies from start-ups to well established businesses, meaning Xero will play a massive part in your business no matter the size or where you are in your growth journey.

Xero also has over 1,000 apps which can be integrated into Xero, for, example we use Dext Prepare (a blog for another day – so I will keep it brief!) with many of our clients, Dext Prepare is a data capture software which stores invoices and receipts, extracts all the data accurately in to Xero meaning you no longer need to data input or store paper records. There are many industry specific apps which will suit your business, implementing them at the right time is the key.

How much time and money will Xero save me?
Time is money, right? Xero ran a survey a couple of years back and there have been many more advancements since. The survey found the following:

• Accountants and financial advisers with heavier workloads already recognise the importance of cloud technology (71% of adopters work more than 40 hours a week, compared to only 39% of non-adopters).
• Cloud adopters spend less than an hour a day on manual processes, such as entering data or sharing calendars. By comparison, non-adopters report spending between one and three hours a day on such tasks.
• Non-adopters are twice as likely to spend more than an hour a day chasing up emails and other documents than those who use cloud-based software.

Keep in mind that this happens every single day. And if you add this up, using cloud-based accounting software could offer time savings of up to fifteen hours a week. That’s an average of 54 hours per month or 27 days per year: an entire annual holiday allowance plus change.

Imagine what you could do with all that time?

Does Xero Integrate with other software?
Over 1,000 apps as stated above, these can be found at the Xero App Store.

Apps are broken down in to all sorts of different categories, such as Payment services, CRM systems, Inventory management, Payroll, HR, Ecommerce Accounting tools and many more.

One key feature of Xero is that it will allow you to integrate your bank into the software, meaning no more having to download bank statements for your accountant!

One fantastic app which is a 2021 Xero award winner is ‘Reducer’. This app will find savings on your business costs without the gruelling task of comparing suppliers. With just a few clicks, Reducer offers a simple price comparison solution that empowers businesses to make better buying decisions and increase their profitability.

By analysing your bills, Reducer spots areas of overspending and sources tailored quotes from hundreds of suppliers. Choose which savings you’d like to take and Reducer will handle any switches for you. It’s quick, it’s easy, and best of all, it’s free.

There are so many, reach out to DIGI, Xero Specialists, if you want to discuss specific apps that integrate with Xero.

Is Xero safe to use?

You control assess levels which means you are in full control of who can access Xero and how much they can see. For example, you may want to give an employee access to input sales and purchases, but you don’t want them to see payroll information. Xero allows you to set an individual’s access rights to make sure they can only see the information that you want them to see.

Two-step user authentication is now a must. Whilst Xero will ask you for a username and a password every time you log in, you must add an extra layer of security called two-step authentication. This means that every time you log in you will also be required to also enter a unique code that is generated by an app on your mobile phone. So, even if your password was compromised, they still wouldn’t be able to access your Xero account unless they also had access to your phone.

Checking your identity, just like using your bank card, Xero will check your location and computer and if anything is unusual then it will limit the access to the account. You’ll have to prove your identity by clicking confirm on an email which confirm your location and allows you to receive full access.

Xero stores your data in secure date centres on servers that are located in enterprise graded hosting facilities. They are monitored by security 24 hours a day, 7 days a week, 365 days. They also maintain replicas of your data in multiple geographically separated servers to minimise loss of data.

What is the cost of Xero?
There are standard plans and partner plans. Partner plans are for Xero Accountants and partners only. Prior to going ahead with a subscription, it will worth a quick discussion with DIGI or your current accountant to understand which plan for be best.

DIGI are Xero accountants meaning we can support you with anything Xero!

All information is correct as at 26 July 2021.

Contact us
Email: hello@digiaccountancy.co.uk
Call: 0161 250 7500
WhatsApp: 07491035984


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