Xero is advertised as an online accounting software program that helps boost efficiency with time-saving tools. Xero helps entrepreneurs grow their business by spending less time on accounting. The secure and reliable online accounting software also provides 24/7 support for any questions or concerns that may arise.
- Affordable double-entry online accounting software is within the means of most small business budgets.
- Detailed record and transaction forms are very helpful to any small business.
- Collaboration efforts make software easy to use for multiple team members of the accounting staff.
- Some of the best support you can ask for with online accounting software, with 24/7 outreach.
- Payroll function is not available in all states which is disappointing for some small business owners that really need online accounting software to handle payroll.
- Mobile app is a nice feature, but still features some bugs and other issues that affect overall productivity.
Xero is not only an online accounting software program for your PC or Mac, but also for your mobile device. Unlike Wave Apps (which is free, but lacks a mobile version), Xero features a comprehensive app that can send invoices, reconcile problems, create expense claims, and many other accounting functions.
Because you can manage invoices from home, at the work office, or on the go with the mobile app settling invoices has never been easier. Additionally, Xero provides automatic updates so the latest information is available.
Xero lives up to the name of taking zero seconds to reconcile any bank transactions. The bank accounts and credit cards related to the Xero account are updated frequently so real-time data is consistently available regarding small business funds.
Xero endorses a “highly collaborative” environment. It means that the app is best utilized when the entrepreneur teams with an accountant, bookkeeper, or any other members of the accounting team under one single account. The small business owner is enabled to set privileges and access rights for different sections of the business finances. The collaboration is designed to make accounting effortless for all members involved, and keep communication lines open.
The online accounting software also features data backup so you can operate without fear of losing any vital information. The industry-standard data encryption and secure data centers, along with two-step authentication provide exceptional data backup features.
One primary concern with small business owners is they are worried about handling accounting on their own. Perhaps they come from a limited math background, or are just concerned about missing important steps in tax preparation. What’s great about Xero, and one of its primary selling points, is the customer service and support provided with a monthly subscription.
While Xero currently lacks chat and phone assistance, email support is offered 24/7 for any questions or concerns that may arise. Furthermore, the support is not just limited to functions of the Xero app but also can help explain certain aspects of accounting to give you a better picture of how the process work.
Along with the other features, Xero provides very detailed record tracking and transaction forms, extremely thorough inventory tracking, several different customization reports, along with smart lists. Expense tracking is updated automatically. Online quotes are also available to send to potential customers.
Xero offers three different subscriptions.
The Early plan features all the basic features of Xero at $9 per month.
The Growing plan offers the same features as the Early setup, however, extra features are provided for small businesses on the rise. At $30 per month, it is three times more expensive per month yet definitely worth the extra cost for small businesses that can afford it.
The Established plan gets you all of the amenities of the Growing plan and more. The suite package is pricey, at $60 per month, yet you can’t beat the number of features.
Xero does offer a free trial on all its plans. Try it for free for 30 days, and cancel any time to avoid any charges.
Is Xero appropriate for small businesses?
Xero does some things really, really well and other things not so great. The payroll features are great, but only for certain states Xero supports. You’ll need to check with customer service before enrolling in a subscription to make sure your payroll is covered. If not, you may want to look elsewhere.
However, for the most part Xero is a solid double-entry online accounting software provider. The inventory management and invoice features are great tools for precise, up-to-date bookkeeping. Entrepreneurs like the combination of fair subscription prices, number of features, and mobile app that makes Xero appropriate for small businesses.