Cloud-based accounting has become popular among entrepreneurs and SMEs because of its unique benefits. While many alternatives exist in the market, companies are constantly looking for the platform best suited to meet their business needs. Given that Xero is one of the best alternatives, this article will further provide additional insights on the 5 biggest benefits of using Xero.
1. Instant financial reports generation for decision making
For making informed decisions, business owners will consult their financial reports to make forecasts on the outlook of the business, and how to mitigate against potentials issues that may arise in the future. Usually, business owners may will utilize its annual audited reports to make future plans.
However, using the audited reports for planning and decision-making can be challenging since the report does not provide the real-time status of the company’s financial position. The reliability and accuracy of data due to time lag can lead to inaccurate business projections.
Adopting Xero allows you to generate reports instantly. After transactions are reconciled, real-time data is made available for reports generations. Since your Xero reports are generated based on real-time data, Xero can provide additional historical data needed to trace past transaction and compare performance. With this, you can understand the company’s performance and draw conclusions through numbers.
2. Ability to integrate with customized applications using the Xero app marketplace
Businesses may wonder how cloud accounting software caters to different industries’ needs. Xero achieves this through its growing app market. Dedicated to developing their community and app market, Xero allows integration with more than 1,000 applications to eliminate manual tasks and satisfy the needs of various sectors and industries.
We can consider a case study with restaurants and discuss how Xero helps to streamline its accounting features using connected apps. Eats 365 is a connected application that can be found in Xero’s app marketplace. Eats365 is a cloud-based platform designed to act as a user-interactive point-of-sale (“POS”) system for restaurants. Using the Eats365 app, patrons can find, browse, reserve, order, pay for, and even specify whether they would be dining in or taking away the food. Connecting Eats365 and Xero, you can consolidate all your financial information onto Xero. You do not need to manage two systems in order to figure out your cash flow and performance. This integration allows you to manage your business seamlessly.
3. Reduce manual tasks by Syncing bank Information
A great amount of bookkeeping time is spent manually entering banking transactions into accounting software or spreadsheet. However, with the use of Xero, this issue can be resolved. Xero has created a feature from its API allowing financial institutions to connect securely to its software, generating daily bank feed to the platform. In Hong Kong, banks like HSBC, DBS Airwallex, and payment platforms ranging from Paypal to Stripe also implemented the bank feed integration in 2017 to connect their customers to Xero.
Automatic bank feeds can save an enormous amount of time on data entry, and increase the accuracy and speed of keeping the accounts up to date. Direct feeds ensure the small businesses are working with accurate data. Once the bank feed has been set up, there are additional ways to enhance the efficiency when performing bank reconciliations by creating bank rules. It removes the manual effort of inputting the same data over and over again.
4. Increase flexibility using cloud platform features
For traditional accounting systems, accounting work is usually prepared using designated computers. This system hinders collaboration and efficiency. Using a Cloud accounting system allows different devices, even smartphones, to get access to the platform. Companies can store, retrieve, and process different financial data through a few clicks. Unlimited users can manage their works remotely, 24/7, and through different devices. This fosters collaboration within a team, ensuring all stakeholders and employees are on the same page.
Another important feature for Xero is the ability to automatically upgrade. Being able to work with the latest version of the software ensures that you have access to the latest features to improve your workflow. This flexibility allows companies to keep improving their efficiency, even during company scaling.
5. Global recognized secure platform
Security has long been the main concern for companies to switch from traditional accounting software to Cloud platforms. Data breaches can lower a company’s revenue, ruin business relationships, and affect customer loyalty. As a customer-centric company, Xero is certified as compliant with ISO/IEC 27001:2013, which is globally recognized as the premier information security management system (ISMS) standard to protect its users. It provides different security measures that enable users to safely use their platforms.
Xero also applies Multi-factor authentication (MFA). Not only do users need to sign up by login name and password, but they also need to use another app on smartphones or tablets for authentication. These extra steps prevent strangers from login into the account even if they have access to the password.
How FastLane can Help:
As Xero’s Hong Kong Accounting Partner of 2019, FastLane Group can provide you with an end-to-end solution to help transition your accounting process from offline to online. Xero setup does not need to be difficult. We understand the practical considerations that must be made to use Xero properly. These factors include data migration, invoice setting and customization, conversion balance set-up, and how to use Xero to prepare for your audit and tax obligations.
We will provide a dedicated account manager to help facilitate your transition and to ensure effective coordination during the Xero implementing process.
In addition, FastLane can further customize your system by identifying the most appropriate third-party application suitable for your business. We can assist you with integrating both applications.
After helping you implement Xero, FastLane can provide 1-on-1 training to your team, ensuring that all of your staff are familiar with the system. If you encounter any issues while using Xero, we can act as your support to help you resolve any issues as they arise.