Xero is the New Zealand created accounting system that has taken the world by storm. Starting out in Wellington, Xero is now operating in over 180 countries with over 1.7 million subscribers worldwide. Xero’s biggest success factor is that it has been designed to be used by business owners. You don’t have to be an accountant to understand how it works. There is no technical jargon or complex accounting principles, just plain English.
Xero is “in the cloud”, meaning it can be accessed anywhere so long as you have internet access, so there’s no excuse to not do your bookkeeping. Whether you’re waiting to pick kids up from school, on the other side of the world or sitting in the office, you can access Xero. It can be accessed either through your internet browser on your computer or through the mobile app on your phone or tablet.
Xero uses Artificial Intelligence (AI) to take the mundane data entry out of your bookkeeping tasks. The more you use Xero, the more it remembers about your business transactions. This allows it to predict what to do with future transactions. You no longer have to enter who every transaction was paid to and what it was for. Xero can prepopulate this information so all you need to do it review it.
To land money in your bank account faster, Xero has partnered with a number of payment service providers such as Stripe, Paypal, e-Way and GoCardless. These providers will allow your customers to pay you with their debit/credit card directly from their invoice instead of having to log into internet banking. The invoice will then automatically be marked as paid in Xero so your accounts receivable are always up to date.
Xero also integrates with the IRD. This makes filing GST and Payday filing a breeze. With a click of the mouse your returns are filed. There is no need to manually enter information into the IRD website – Xero will do this for you.
With Xero being in the “Cloud” it allows us, as advisors to access your financial information at any time. There is no need to send us any reports for tax reviews or for the end of year accounts because we can access it ourselves, as can your other advisors such as business advisors, bankers or mentors.
Another bonus of being in the “Cloud” is that the software is always up to date. While you’re tucked up in bed at night, Xero is updating so you always have the newest features available to you at no extra cost. Recent updates have included additional cash flow reporting, more artificial intelligence in the invoicing function and the ability to manage employee reimbursement expenses from the dashboard.
While the transition onto a new accounting system can be a challenge, there are undoubtedly long-term benefits from transitioning to a cloud based system such as Xero.
If you are interested in converting to Xero from your existing system or would like to discuss how Xero would suit your business, please contact your Client Manager.