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Hi guys, it’s Michelle Knight from Little Miss Bookkeeping.
Today I wanted to run through the reasons why I love Xero. Now, for those of you who don’t know, Xero is a cloud-based accounting software, a software that I use on a daily basis and software that my clients use. So I wanted to run through the five main reasons why I love it.
So if you’re interested in learning more about that, please keep watching!
This is my opinion and sort of some little tidbits that I thought I’d share. This is not in any way a sponsored post or anything like that, I just wanted to share my thoughts around it and I suppose inform those who might be sitting on the fence as to whether to choose Xero or not.
There are many different types of software providers on the market. There’s Xero, QuickBooks, MYOB, Reckon, a whole range of different software providers. Xero being probably one of the biggest players in the market.
So we saw Xero come into the marketplace and we saw how great and amazing it was. The transition from desktop accounting software like MYOB to Xero. Software like Xero’s competitors do have comparative cloud-based options. But in my opinion, they’re probably not as user friendly in some circumstances and they’ll probably not as good. Not to say that Xero is going to dominate the market forever and ever, and ever, but right here right now, it’s a program that I recommend for a lot of my clients based on their needs, remembering that everyone’s businesses and circumstances are different. Xero might not fit that criteria for a client. But a lot of clients that I deal with, it’s gonna tick the boxes for them.
You might’ve seen ads pop up online or on TV, that sort of thing. Now, when I first started accounting years and years ago, MYOB was the biggest player back then. MYOB was probably the most common accounting software I used back just after I’d finished Uni. And then everything moved to the cloud.
Let’s jump into it. The first reason why I love Xero.
1) It’s easy to use
You log in via your internet browser, it has beautiful interface from both a frontend and backend. So for business owners who are trained up to do their own bookkeeping or internal bookkeepers, the software is quite user-friendly.
From a backend, it generates really good reporting for accountants to take away certain information they need to complete compliance, such as your BAS or tax returns, that type of thing.
A lot of people kind of get a little bit scared about using an accounting software, and I say, let’s do some training. It is no where near as scary as you first think!
2) It has a lot of integrations
The second reason I like Xero is that it has lots of integrations. I’m noticing with a lot of e-commerce clients that I pick up, one of the first things I’ll do is make sure that any of those integrations are linked. In addition to your normal bank feeds that are in most cloud accounting software, we’ll link PayPal fees, we’ll link E-way, Stripe, Square, Timely, depending on obviously if that’s gonna work for their business processes and it works for their bookkeeping.
I love the fact that Xero has a whole marketplace where there’s additional add-ons, you can select and really make that bookkeeping and accounting processing a lot more streamlined, a lot quicker, really cut down the every day menial tasks. Once upon a time we had to do a lot of manual filing, scanning documents and nowadays, we have our iPhone, we take a photo, we upload it via an add-on such as receipt bank, push it through to Xero and it’s in the cloud forever and ever, and ever.
3) Value for money
Now, the third reason why I love Xero is value for money.
Now I’m always a cost-benefit type of gal. So, let’s put it this way, it’s not the cheapest on the market. And when you’re comparing “cheapest” it’s hard because the accounting software available, is like comparing apples to oranges. I’ve had clients come to me and say “QuickBooks is cheaper than Xero” or “MYOB is way cheaper” or “This more expensive”, and I say, you’re really comparing apples and oranges.
So don’t think, “Oh, I’m starting a new business, I need to go with the cheapest option”. You will shoot yourself in the foot. I’ve had clients go to cheaper options, and as they grow, or they’ve noticed that it just doesn’t have quite the functionalities that they need for their business.
So, they start off with an invoicing system that kind of fits 50% of their needs. They grow, they realise 12 months down the track, “oh crap, it’s not doing what I need it to do”, and then we have to go through the process of converting them over to something like Xero. It’s not a big deal, but it’s that time and investment where if you choose the right solution for you, based on benefits to you, as opposed to that cost figure.
I definitely recommend making sure you pick the right solution for you because if we go ahead and pick a different software based on price, we get it all set up and that’s a time cost, whether you get assistance with that or you do it yourself, and convert it six months later, why didn’t we just pick the right option?
And that’s why I say Xero is value for money. It’s definitely not the cheapest people come up with. There are free options, but don’t get stuck into that trap.
4) It’s 100% cloud based!
The fourth reason is pretty obvious – It’s a hundred percent cloud based!
So I can jump on my computer, at the same time I can be in the phone call with the client, and they can jump on their computer. If I’m out and about, and I really need to pull some data I can do so on my phone (although it’s not my preferred way to pull any Xero data).
Xero does have apps for you to do certain things, but being in the cloud, you can give access to different members in your team, give access to your bookkeeper, your accountant, and it’s all in there. You can upload and scan documents instantly and seamlessly. Amazing! I love the cloud, it is great.
Another thing you can do is link to the ATO. So it obviously ticks the boxes around STP filing, you can do BAS lodgements through there as an option.
Now, fifth and final reason why Xero is amazing…
5) Xero is always improving
So I’ve noticed comparative to other competitors out there, they really invest the time into product development. You’ll see a little forums in the past where people ask “can I have this specific function?”, and more often than not Xero say, “Okay, we’re working on it. Thank you for the feedback”, and if there are enough people in the Xero community or enough Xero’s out there requesting for the same type of functionality, Xero will at least look into making that option available.
So I really love that they’re making it better for the users.
That is pretty much the five reasons why I love Xero!
Again, if you have any specific questions around your accounting software, your accounting needs, please definitely speak to a trusted tax professional. Again, everyone’s circumstances are different and you do need specific advice for your specific situation.
If you have liked my video, please do give it a thumbs up and subscribe to my channel, it helps me to provide more valuable content for you. Thanks for watching and I will see you in the next video. Bye.