5 ways Xero can help your small business
Mon, May 24, 2021
With over 2 million subscribers since it launched, Xero was built with small businesses in mind.
There are many benefits to using Xero, but here’s 5 that we think are particularly useful to small businesses.
What are the benefits of using Xero for small business owners?
Accounting software, VAT calculations, tax returns; most business owners don’t build a business so that they can focus solely on the financial aspects (except for us, we’re the exception), and bookkeeping can feel incredibly daunting when you’re first starting out.
With Xero, everyday financial tasks are simplified so that business owners, accountants and bookkeepers can seamlessly share real-time data, giving you everything you need to run your business effectively and efficiently.
5 Xero features for small businesses
1) Xero add-ons for a tailored experience
Xero has developed its own marketplace, boasting over 800 add-on solutions that help to tailor your Xero experience to suit your industry. That means that you can select precisely what you need and leave anything you don’t, and as your business progresses and grows, you can go back to the marketplace for additional add-ons at any point.
A favourite of ours at Portt & Co is Dext Prepare (previously known as Receipt Bank). It is an add-on that helps collect and store your vital paperwork, such as receipts, invoices and bank statements.
You’ll never have to hunt down receipts and input them into your system again. With Dext Prepare, you can simply take a photograph on your smartphone as soon as a receipt is handed to you. From the picture, the add-on will extract the key data and integrate it with Xero, where your bookkeeper or management accountant can pick it up.
2) Easy-to-use reconciliation with Xero
By inputting everything through Xero, frustrating bank reconciliation is a thing of the past.
It’s important to reconcile your bank regularly so that you can find and resolve any problems as quickly as possible and stay on track of your finances.
With Xero’s reconciliation tool, you can review and match transactions daily using their automated suggested matches. You can also set your own rules and group similar transactions to reconcile at once.
Bank reconciliation comes as part and parcel of running a business, which is why Xero has made this feature as user-friendly as possible. Once your bank is connected, the data flows in automatically, and you can reconcile with the click of a button.
3) A clear insight into your finances with the tap of a button
Knowing how much money is in your bank account is great, but it’s a little pointless if you don’t know what these numbers actually mean for your business.
The Xero account watchlist is one of the key features of your dashboard, displaying both the month and year-to-date balance of your small business accounts. You can break this down even further to your sales accounts, office expenses accounts and more, giving you in-depth and valuable information as soon as you log in.
Your accountant can also use this information to ascertain any areas of your business that need to be closely monitored, helping you make strategic decisions that will help your company thrive.
4) Take your accounts with you via Xero cloud accounting
Over 2 million people across the world have subscribed to Xero, helping their business to work smarter and faster with cloud accounting technology.
Cloud accounting simply means that your ‘books’ are stored online. With your data being stored on the cloud, this means you can access it anytime, anywhere – as long as you have a device with internet connection, allowing for flexible, on-the-go working
You can also check whether invoices have been paid and upload photographs of business-related receipts at any time of the day, from any location.
The data is encrypted so that only users with the log-in details can access it, making it very easy to work closely with your accountant and bookkeeper.
5) Access Xero using your mobile phone
It’s estimated that 3.6 billion people worldwide have a smartphone, which is why it’s so essential for Xero to make your everyday business tools as accessible as possible.
You can download the Xero app on iOS and Android, meaning that wherever you are, you can
- Send invoices
- Monitor your accounts
- Reconcile transactions
- Access financial reports
- Automate CIS calculations
Get started with Xero accounting software for small businesses
At Portt & Co, we offer a range of expert services to help you make the most of your business. We are proud Xero gold champion partners and have been rated as specialists for Xero migration and Making Tax Digital Ready.
If you would like to learn more about Xero and how we can help you manage your small business finances, please get in touch.