Advantages of Using XERO for Your Bookkeeping

Wednesday, 26 Dec 2018

With the advent of cloud-based systems, the bookkeeping process has undergone a paradigm shift. The digital revolution has eliminated the outdated data entry-based systems and paved way for automation. The switch to evolved techniques has improved accounting accuracy and efficiency.

The cloud-based software has come as a blessing for small businesses which earlier relied on manual data recording which wasted labour, money and time. Among these advanced softwares, XERO has captured the imagination of most business owners and accountants because of its advanced features and desirable performance.

Numerous small and medium-sized enterprises have adopted it in the past couple of years. The software provides the ability to do all the number crunching in the cloud without costing a fortune and allows the owner to focus on other core functions. Every professional bookkeeping company in Melbourne recommends its clients to use the software because of the following benefits.

1. Saves Times and Increases Effectiveness

XERO ensures that the processes are streamlined and automated which eliminates the need for human intervention and in turn, reduces manual work. It minimises the probability of human errors as transactions take place without data entry.

The hours spent in transferring information from bank statements can now be utilised in more productive tasks. Cloud bookkeeping allows the integration of add-ons into the software which assists in automating all the functions ranging from maintaining financial documents to cash-flow predictions.

2. Improves Data Security

The software safeguards the financial information and customer details with a double layer of security. It allows keeping the number of users under control and restricts access to unauthorised employees. The two-step validation process further secures the confidential data.

Additionally, all the data gets stored on the cloud which provides an automatic back-up. With computers, the possibility of losing the data due to damage or misplacement was not uncommon. However, the cloud keeps it safe under all circumstances.

3. User-Friendly and Accessible

The interface of the software is user-friendly and allows easy navigation even to those who are not from the accounting field. There are no jargons in XERO, and the simplified terms help novices to get acquainted with the software quickly. The accessibility feature lets the user operate the platform from anywhere on any device with the help of an internet connection.

The bookkeepers can stay on top of all the payments as bank transactions are imported and recorded as per their status in the system. The utilisation of new technology has improved the industry and supported its growth with the revenue touching the mark of $20 billion in 2018.

4. Real-Time Data Reporting

With the help of this flawlessly updated process, the owner gets full control of his financial situation. Since managing the cash-flow is the most critical aspect of running a business, the real-time insights offered by XERO are invaluable.

The timely availability of financial data helps to keep track of the incomings and the outgoings without waiting for the system to update. The real-time reporting attribute gives you the freedom to check where the money is going every moment of the day.

5. Saves Money And Manages Finances

XERO has a multitude of advantages such as sending out invoices almost immediately which means money comes into the company account more rapidly. Customers can make payments through a variety of payment channels which further improves the process.

You are aware of the deadlines, so you do not miss the last dates and end up paying penalty fees. All of these enhance the cash-flow and in turn, help to save money. There is an improved collaboration between the accountants and the owners as they have time to offer advice and take part in other financial decisions.

6. All-Encompassing System

XERO is a comprehensive software which has all the required bookkeeping modules such as payroll management, cash-flow management, forecasting, timesheet management and much more. It can be utilised for superannuation and generates and delivers the purchase orders, bills and invoices within the platform electronically.

The accountants can also create customised reports which can be reviewed anytime by the owner. Additionally, the software automatically converts currency to the user’s country, even if the entry is made in an international currency.

7. Professional Approach

When a company uses software like XERO to send out invoices to clients, it makes an impact on the receiver about the competence of the business. The software allows the creation of customised templates with logos to be used for invoices.

It also provides the details of the customers so the business can build lasting relationships with them effortlessly. It aids in tracking the bills to keep the stock in check and make payments on time.

Conclusion

In today’s digital age if you are still following the manual bookkeeping methods, then you are lagging behind. The fast-paced and competitive markets ask for more accurate, faster and updated financial reporting systems which can be achieved with the help of cloud-based software like XERO.

The leading and trending software has offered the much-needed thrust to small businesses. If you own a small business, you must consult with bookkeepers in Melbourne to get XERO today.

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