In the fast-paced world of business, growth is the ultimate goal for many SMEs. But achieving that can be difficult. For starters, how are you supposed to think about expansion when you can hardly keep your head above water with your financial management and bookkeeping?
This is where Xero can seriously help by revolutionising the way you handle your finances.
What is Xero?
Xero is a cloud accounting software. This type of software uses remote servers hosted on the internet, rather than relying on local servers or personal computers.
In practice, that means that rather than storing all of your data on one computer, your financial information is stored online – accessible to any device with an internet connection (if they have your secure username and password, of course!).
Benefits of Xero
There are a lot of benefits to using a cloud accounting system like Xero. Here are just the most obvious ones.
Streamlined workflows
Xero has embraced the power of AI and automation technology, incorporating it into many of its procedures. Bookkeeping is probably the best example, as all you have to do is submit a digital copy (a photograph from your phone will do!) to Xero. It will then use optical character recognition software to ‘read’ the document and automatically categorise and record transactions.
Tools like this will save you a lot of time and vastly reduce the chance of human error, allowing you to focus on creative ideas that will help grow your business.
It also seriously helps how seamless it is to access your data with Xero. With this type of software, there’s no need for stacks of paperwork. Furthermore, as all you need is an internet connection to get into your account, you can work from just about anywhere, and always stay up to date.
Data for informed decision making
Xero’s capabilities extend beyond data collection; they cover data analytics too. This feature is brilliant for providing you the insights you need to improve your services. Here are some aspects of Xero’s data analytics:
- Financial insights: Xero collects and analyses your financial data to provide insights into cashflow, revenue trends, expense patterns, and more. This helps businesses understand their financial health and make informed decisions.
- Benchmarking: With its benchmarking suite, Xero aggregates anonymised data from its vast user base to compare your performance against similar businesses in your industries.
- Predictive analytics: By analysing your historical data, Xero can offer predictive analytics to anticipate future trends and financial outcomes. That can help you plan and adjust your strategies.
Collaboration made effortless
In business, collaboration, which is something that Xero understands by letting you seamless work with your team and trusted advisers. In fact, with Xero, everyone’s on the same page – quite literally. That’s because you can grant tailored access to your access, adjusting visibility and control as you see fit.
Need to discuss last month’s financials with your accountant? Forget about emailing a bunch of spreadsheets – all you need to do is invite them to your Xero workspace.
Scalability
As your business grows, so do your needs. But whether you’re a one-person army or medium-sized business, Xero’s flexibility means you can stick with it for years to come.
Specifically, Xero offers four separate plans for you to pick from. Have a look to see what you need now and what you might need in the future to make sure Xero is the right choice for you.
If you think Xero is the right choice for you but need some help being shown the basics, get in touch with us – we’ll show you the ropes.
