The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Xero used to offer strong customer support, and while what is the effective interest method of amortization there are still a ton of great support resources available, getting in touch with an actual representative is a lot more difficult. Create, edit and send invoices as soon as the job is done directly from the mobile app.

Best Accounting Software for Small Businesses of 2024

If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website by location and industry. Get the most out of Xero with access to our team of onboarding specialists during your first 90 days. From cost savings and strategic financial guidance to scalability, access to cutting-edge functionality and risk mitigation, your on-call OCFO experts are here to make your life easier. Xero is available in many other territories, so a look at their website will reveal other costing changes, plus the price of several additional extras that boost its capabilities. Why you can trust TechRadar We spend hours testing every product or service we review, so you can be sure you’re buying the best.

How To Use Xero in 13 Easy Steps

Streamlining expense reimbursement processesXero allows you to link your expense claims with specific projects or clients, to ensure more accurate cost allocation. Xero also integrates with a number of popular payment platforms, allowing you to reimburse expenses directly to your staff bank accounts, making life easier for everyone. Xero software is also committed to ensuring compliance with the General Data Protection Regulation (GDPR), which is a comprehensive data protection law enacted by the European Union (EU). GDPR sets strict guidelines for the collection, storage, processing, and transfer of personal data of EU citizens. As a cloud-based accounting software provider, Xero recognizes the significance of protecting user data and has implemented robust measures to adhere to GDPR requirements.

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Xero tries to throw you as many bones as possible by adding a video or help article to the top of every page you open. If you need some extra assistance in finding features or understanding the software, Xero also offers a help center. We also have a comprehensive and free How To Set Up Your Xero Account guide that teaches you how to use and optimize your Xero account.

You then have the option to categorize each transaction in Xero or simply confirm what Xero suggests. Being a cloud-based service Xero naturally works just as long as you are connected to the internet and use any one of the popular web browsers out there. You’ll find that Xero is similarly sprightly if you choose to use its app-based editions, which are available for both iOS and Android devices. In fact, the Xero experience on a tablet or smartphone seems to be generally good, especially considering its depth of data entry points. While it claims it has 24/7 online support, what it really means is that it has an online community you can ask questions in.

Why Is Cash Flow Important To A Small Business?

You can also scroll through Xero’s default chart of accounts and customize it as needed, or import an already existing chart of accounts. If you have a list of customers and suppliers, you can import that, too. When reconciling books, Xero suggests likely matches between bank statement lines and transactions entered in the software. For example, if you have an entry for an invoice of $1,000 and a recent $1,000 deposit in your bank account, it might suggest matching these two transactions. Click the “OK” icon between the two to verify the match is correct. Our partners cannot pay us to guarantee favorable reviews of their products or services.

1. Xero connects to your bank and credit card accounts and imports data daily, so we really appreciate that it protects your sensitive business data with bank-grade encryption.
2. As a business moves into higher-growth phases, it will likely require more integrations to scale up and keep things running smoothly.
3. New users can access a free 30-day trial, which doesn’t require a credit card for sign-up.
4. Make Xero your own by connecting other apps to the Xero accounting software.

Float’s integration with Xero means no more manual data entry, and an always up-to-date and accurate forecast. Big data is changing businesses, affecting operations more each year. Growing businesses need data presented in an easily digestible manner so business owners can act on the insights.

Run things smoothly, keep tidy online bookkeeping records, and make compliance a breeze. Xero offers streamlined Project Management Tools for smaller businesses, allowing you and your team to easily track project-related expenses, allocate budgets, and generate accurate financial reports. Xero does a fine job of mixing an enjoyable and modern-looking user interface with a huge collection of accounting features and functions.

This is ideal for growing businesses that don’t want to waste time on technical issues. However, they were not as comprehensive as what we found in our review of QuickBooks Online. Phone support is not available immediately; you must contact customer service first via email or live chat. However, the upside is that Xero does not leave users hanging with long wait times. Instead, the company will call you back at a time convenient for you.

A part-time CFO or accountant available as needed, and can assist with expert financial advice,  without becoming a permanent drain on the payroll. Utilizing Xero’s expense claim featuresTeam members can submit their expense claims directly through the platform, attaching invoice format tips for beginners relevant receipts where necessary. Managers can review and approve the claims digitally, streamlining the approval process and reducing paperwork. This feature ensures transparency, and timely reimbursement of expenses while cutting down on the possibility of human error.

Zoho, for example, is accounting software with a free invoice platform that allows you to bill in multiple currencies. Check out the Xero App Store to find, try and buy business apps that connect to Xero online accounting software and make running your small business even easier. Apps like Stripe, GoCardless, Vend, and Shopify connect seamlessly and sync data with Xero. OCFO’s team of professionals has in-depth expertise and experience in utilizing Xero Accounting software to automate, streamline and structure your financial processes to your benefit.

We also ensure that the software offers most standard accounting features and reports, awarding higher rankings to those that provide advanced services, like tax filing. Because both software come with a 30-day free trial, you’ll have plenty of time to give each a test run before committing. However, there are some key features missing from Sage, including bill pay and time tracking. While Sage does offer accounts payable, it seems you still have to manually pay bills from your bank account.

As Xero is connected to your bank, transactions are pulled through automatically. Xero remembers the last time you categorised a transaction, so you can simply click ‘OK’ if you want it to go sales general and administrative vs cost of goods sold to the same category. If you have an accountant, you can seek their help with this decision. However, if you are your own bookkeeper then we recommend using Xero’s default chart of accounts.

The Xero Accounting mobile app works in tandem with the Xero accounting software so you can run your small business online from anywhere. Keep track of your unpaid and overdue invoices, bank account balances, profit and loss, cash flow and bills to pay – plus reconcile bank accounts and convert quotes to invoices. Xero is robust, cloud-based software with strong accounting, ample integrations, and some great features.

In today’s digital-first era, e-commerce has become a significant revenue stream for many businesses. Xero’s integration with e-commerce platforms empowers you to manage your online sales and finances from a single platform by automatically importing sales data, tracking inventory, and reconciling payments. Although the accounting function is vital for business success, the detail of capturing and logging all entries can be time-consuming, pulling employees away from more vital work. At the same time, small businesses don’t always have the funds to hire an accountant or CFO full-time. This is where cloud-based and automated accounting software packages like Xero shine, allowing small business owners big-firm functionality and ease at a fraction of the cost. Xero integrates with a wide range of third-party applications, including payment gateways, payroll systems, inventory management tools, and customer relationship management (CRM) software.