What is Xero cloud accounting software?
Xero is an online accounting software that is aimed at small businesses. When it is combined with apps that are specific to a businesses industry, it can provide a platform to manage small business finances and accounts.
Being a cloud based accounting software, Xero access can be gained from any location, therefore there is no need to keep your accounting software on a server or pc in the office.
Business owners, team members, accountants and bookkeepers all have access to the same data, so there is no need to send back ups of software and waiting for accounts to be completed before rolling the year end.
Xero can provide real time accounting data, enabling small business owners to access the up to date financial reports that they need to run their business.
Xero is suitable for most small businesses including those trading as a limited company, sole trader and partnership.
Why should you use Xero?
Xero accounting software is designed for small businesses, saving you time on basic accounting tasks making your life easier.
- Banking - Bank accounts link to Xero saving manual imputing of bank transactions
- Invoicing - Invoices can be generated directly from an approved quote, or automatically repeated then emailed to a customer
- Purchases - Purchase invoices can be automatically processed and stored digitally, so there is no need for paper records being stored in the office
- Payroll - Employees can directly submit expenses into Xero. Payroll can be processed from the software and you can send payslips directly to your employees
- VAT Returns - These can be directly submitted from Xero as it is making tax digital compliant and reducing the time taken to process your VAT returns
As well as saving you time in processing your accounts, Xero can produce financial reports so that you can understand and manage the financial position of your business. This will also help improve your cash flow through understanding what money is owed and what money you owe.
One of the most recent developments to Xero, has been the business insights that can be used to forecast the cash flow of the business.
On top of that, automating as much of the accounting processes as possible removes the risk of input error which can help ensure compliance with HMRC requirements.
With making tax digital coming into force from 5th April 2024, Xero will ensure that HMRC requirements are met.
Finally, using Xero enables your accountant to give expert financial advice as being in the cloud they have access to up to date financial information, so any guidance is based on actual data.
If you choose Xero for your business needs, then get in touch with Spotlight Accounting. As cloud accountants, we can provide you with expert advice on getting maximum results for your business.
How is Xero used?
Xero is accessed through a web browser or via an app on your phone. Multiple users can be added without additional charge.
With Xero being at the core of an accounting function, with connected apps it can be tailored to the needs of your business. These apps can also automate most of the bookkeeping function and help manage the business finance function.
Sales invoices are raised directly from the software, or if your business uses quotes these can be issued through Xero and invoices directly raised through these.
Online sellers can use an app such as Link my books, to automatically import sales invoices into the software.
Xero can also improve credit control through automatically sending invoice reminders to customers.
Using a connected app, such as Dext, purchase invoices can be automatically processed in Xero. Dext can also pull bills from online suppliers such as Microsoft without having to download or print the invoice.
The main area where time can be saved, is having the bank accounts connected to Xero through bank feeds. Transactions are automatically fed into Xero and the software uses AI to match them to invoices already in Xero as well as suggesting where transactions are posted based on historical data.
We would recommend getting in contact with a Xero accountant if you are considering implementing Xero, so that you have an optimal solution for your business.
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How can Spotlight accounting Xero Gold Champion partners help you?
We are modern firm of chartered accountants that were early adopters of Xero accounting software. We have been using online accounting software for over 13 years and as a Xero Gold Champion partner, we can help offer expert advice on how to transfer to cloud accounting or which online accounting solutions are best for your business.
As well as offering cloud accounting services, as chartered accountants our accounting services and tax services can help support your business.
These include year end accounts and tax returns that ensure you are compliant with HMRC, as well as tax planning services such as our tax diagnostic review that can help ensure that you are taking advantage of available tax planning opportunities.
Our accounting packages are tailor made to each client to ensure that they get the accountancy support and services they need to run their business.
Our case studies can demonstrate how our services can help your business.
Being both chartered accountants and certified Xero partners you can rest assured your finances are in safe hands with Spotlight Accounting.
If you want to learn more about how we can help, then contact us today.
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