Small businesses really like Xero’s accounting software. It has received high ratings. If you want to know if Xero is the right solution for your business, check out our 2023 Xero review.
Introduction
Many business owners, freelancers, and entrepreneurs find themselves dedicating a significant amount of time to administrative tasks and accounting. Xero is a cloud-based accounting software system that is perfect for small- and medium-sized businesses (SMBs). It is affordable, with plans starting at $13 per month. Xero helps streamline accounting processes for SMBs.
A Look At Xero Software
Xero has many useful features that can handle complex accounting tasks for businesses of all sizes, including small, medium, and large ones. The software simplifies tasks like paying bills, claiming expenses, accepting payments, tracking projects, managing contracts, storing files, and more.
Here is a breakdown of the monthly fees for Xero:
- Starter : $25 / Month
- Standard : $40/ Month
- Premium : $54 / Month
Want to know more about all above plans just visit Xero Plan Page.
How Does Xero Work?
Once you begin a free 30-day trial of Xero, you will need to activate your account and provide information about your business. Afterwards, you have the option to link your bank accounts to Xero. This will allow you to choose whether or not you want to accept electronic payments for your online invoices.
When you are reconciling books in Xero, the software will suggest possible matches between the lines on your bank statement and the transactions you have entered. For instance, if you have a record of a $1,000 invoice and you recently deposited $1,000 into your bank account, it could be a good idea to consider these two transactions as a possible match. To verify that the match is correct, click on the “OK” icon located between the two options.
You have the option to browse through Xero’s pre-set chart of accounts and make changes to it according to your requirements. Alternatively, you can import a chart of accounts that you already have. You can also import a list of customers and suppliers if you have one.
Advantages
Unlimited Users
You can add as many users as you want to your Xero account, regardless of your subscription level. Accounting software often has different plans with varying features. Lower-tier plans usually have a limit on the number of users allowed, while higher-tier plans offer unlimited users.
You have the option to assign different permission levels to each user. For instance, you can grant all employees the power to send quotes and invoices. You can also permit certain individuals to enter expenses, while restricting access to the company’s overall financial information. Xero keeps things organized by logging every action users make and creating a history of each transaction.
Customise Dashboard and Reports
Xero takes the data you input and turns it into useful information at every subscription level. A dashboard gives you a quick overview of your business’s financial health. It shows you how much money is coming in and going out, as well as any invoices that are still unpaid and bills that are overdue. This page is all about short-term cash flow charts. It shows how your bank balance can be affected by upcoming bills and invoices in the next week or month.
You can customize reports by adjusting the formatting and adding your own formulas and groupings. You can easily organize your expenses by dragging and dropping specific categories into subgroups. For example, you can create a subgroup called “office expenses” and include categories like office equipment, supplies, and utilities. If you’re not happy with the way the dashboard looks, you have the option to rearrange panels and hide the ones that you don’t find useful.
Easy to Use
Xero’s layout is simple and easy to navigate, making it ideal for new bookkeeping users who may feel overwhelmed. This layout makes it easy to reconcile accounts and perform other accounting tasks. The software displays potential transaction matches next to each other, allowing you to quickly determine their accuracy without needing to click anything.
Disadvantages
Less Phone Support
Xero’s customer support page does not display a phone number, but if needed, a representative will contact you by phone. If you want to be able to call and talk about an issue or if you’re new to accounting software and have many questions, this can be a big problem.
Instead, customers have the option to visit the Xero Central support site or submit a case online. A representative usually replies to a case within a few hours.
Limits on Bills
The Early plan is the cheapest subscription option. With this plan, you can send up to 20 invoices and schedule up to five bill payments. It can restrict freelancers and sole proprietors. To have unlimited invoicing and bill-paying capabilities, you will need to upgrade to the Growing plan.
Xero Pros and Cons
| Pros | Cons |
| Every plan allows for an unlimited number of users.There are many third-party app integrations available.The feature set includes a great mobile app and a suite of reports. It also has useful invoicing features and can automatically capture bills and receipts through Hubdoc.The layout is simple and user-friendly. | They don’t give a customer support phone number, but they will contact you if needed.The entry-level plan has restrictions on the number of bills and invoices you can have. |
Conclusion
In summary, Xero’s accounting software is highly regarded by small businesses for its affordability and feature-rich offerings. It simplifies accounting tasks and offers flexibility in user management. However, it lacks phone support and has limits on invoices in lower-tier plans. Overall, it’s a valuable choice for small and medium-sized businesses.