Businesses nowadays have a lot of choices when it comes to accounting software. Some programs work wonders for businesses of all sizes, and Xero is one of the main ones.
Xero is one of the most widely-used bits of kit out there, but whether it’s suitable for a business like yours is the real question.
This article will explain whether Xero is the right choice.
Xero – the basics
Xero is an online accounting software used by businesses to keep track of their financial data in real-time.
Retailers, hospitality professionals and startups use Xero widely as it’s known for being easy to use and accessible.
Like any good cloud accounting software, Xero allows users to create invoices, connect with their bank and run payroll through the app, which you can use on the phone or a computer.
Here are some reasons it may be the perfect fit for your business.
One of the main things people will look at when deciding on accounting software is the price.
Xero has three main pay brackets depending on the features you will need to use.
Its starter package costs £12 per month and allows you to create invoices and send quotes to customers, manage up to five bills, reconcile bank transactions and submit VAT returns to HMRC as part of Making Tax Digital (MTD).
The standard package costs £26 and does everything the starter package does, but without limits on the number of bills and invoices you can manage.
Finally, the premium package costs £33 and does everything the cheaper packages do – with the added benefit of allowing users to handle multiple currencies and bulk reconcile transactions.
There are also optional extras such as expenses and payroll.
Scalable to your needs
As mentioned, the cost of Xero isn’t wildly expensive, but you do have the option to add on extras should your business need them.
Xero will enable you to add new members to your payroll for just £1 per person, for example, if you start to enter a period of growth and need to take on more staff members.
And, importantly, Xero is MTD-compatible, which means it’s ready for MTD for VAT, MTD for self-assessment income tax in 2024, and should also be compatible for MTD for corporation tax come 2026 or after.
This means you’ll be ready for any changes which may roll out over the next few years and won’t have to worry about finding another software provider.
The major benefit of having a software package like Xero is having all your essential financial information at your fingertips. As it’s all based in the cloud, you can access your back-end from anywhere in the world.
This means you can also give access to your accountants, so you can both have real-time updates to your transactions on the move, saving time spent trying to organise meetings during your busy work schedule.
Cloud software increases the level of security protecting your financial information. Instead of keeping your books in an office, you have them locked behind passwords and firewalls.
If you misplace your phone or laptop, Xero will have everything backed up online, meaning you won’t have anything to worry about.
Come to us
Xero could be a helpful addition to your working processes, but if you’re still unsure, the team at Dunkley’s is happy to answer any further questions.
Contact us today to find out how we can help.