What Is Xero?
Award-winning online accounting software designed for small business owners and accountants. Available on any computer or mobile device with an internet connection. Business finances and cashflow are updated in real time. Imports transactions from bank accounts. Unlimited user logins. Integrates with over 1,000 3rd-party business applications. Supports multiple currencies. Data is accessible through a single ledger, allowing accountants and clients to collaborate around finances.
Who Uses Xero?
All small and medium sized businesses and accounting & bookkeeping practices.
Where can Xero be deployed?
Cloud, SaaS, Web-based, Android (Mobile), iPhone (Mobile), iPad (Mobile)
Xero videos and images
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Features of Xero
- Accrual Accounting
- Activity Dashboard
- Asset Accounting
- Bank Reconciliation
- Billing & Invoicing
- Billing Rate Management
- Calendar Management
- Case Management
- Check Writing
- Client Portal
- Compliance Management
- Contact Management
- Cross Ledger Posting
- Customer Statements
- Customisable Reports
- Customizable Fields
- Data Import/Export
- Document Management
- Electronic Payments
- Fee Calculation & Posting
- General Ledger
- Invoice Management
- Real Time Data
- Real Time Reporting
- Receipt Management
- Reporting & Statistics
- Secure Data Storage
- Task Management
- Tax Management
- Third Party Integrations
- Time & Expense Tracking
- Trust Accounting
- Workflow Management
Alternatives to XeroMore Xero alternatives
Affordable professional level accounting software for small business
Comments: It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I realized the default accounts/descriptions for expenses did not correlate 1:1 to IRS categories. (I should have checked this more closely when I set up my accounts because it's a New Zealand company, and the previous product was local.) This means I will need to double-check all my transactions for 2018 and the IRS has my vastly overestimated tax payment until I can do that and file my return on an extension. I've had a much better experience importing data from financial institutions because Xero uses a well-known importing service that is trusted by the institutions. I like being able to match multiple invoices to bank deposits because I usually don't run to the bank for each check. This will be more valuable as my company grows. I should probably find an accountant to assist me with this, but I haven't found an accountant who understands both craft businesses and Xero.
Professional double entry software at a very affordable price Accommodates both cash and accrual accounting Links to financial institutions to get transactions Uses standard importer recognized by the financial institutions instead of just trying to log in remotely (and triggering fraud alerts) Can match multiple invoices to a single deposit transaction imported from bank Can keep using Xero as company grows
Pre-existing expense categories/descriptions don't map 1:1 with IRS definitions, so I'm having to go back to all my receipts to make sure expenses are entered in proper accounts because I didn't realize this when I switched More difficult to focus on specific expense categories to check transactions Have not been able to import historic data from previous app (possibly because it's not double entry) so I am still paying the subscription on that software to retain access to my data No integration with Craftybase, so I have to enter supply purchases and customer invoices there independently
Very different to Sage 50
Comments: We moved from Sage line 50 to Xero, this has mainly been a positive experience. From our day-to-day usage, sending invoices, chasing debt, bank reconciliation it is very easy to use. Our accountant set up Dext to import receipts and expenses which means we spend much less time with data entry now and we are much more paperless than we were. The key driver for us was to work in a cloud based system that would integrate with other business management systems and Xero kept coming up as the one that plays nicely with lots of other services. Our managment accountant has taken a lot more convincing as the web-based interface can be a little more clumsy in some 'pure-accountancy' areas and getting the chart of accounts nicely presented has taken a bit of effort. Generally we're really happy with Xero and are also happy with the split that the CRM/MRP/ERP system is supported by that vendor leaving the accountancy to the accountancy experts.
Ease of use from a day-to-day perspective for a non accountant and integration with other cloud software such as Dext and Flowlens
We have had a couple of glitches where bank feeds have stopped working for periods of time, manual import of bank statements can take a few attempts to get right.
Making accounting simplified and easy to navigate
Comments: Excellent experience so far! I switched from Quickbooks and never turned back
The software has been crucial for the operation of my small business, it connects with Shopify sales very well and the reporting functions allows me to track sales and profitability easily. It also makes it easy for tax time.
N/A - every function has been great and no dislikes as yet
ACCOUNTANT WARNING DO NOT PARTNER - I was 2nd partner in Canada not a smart move heres why!
Not much to say here anymore, they pretty much used to be good and totally lost faith.
As an accounting firm I would be very cautious with using Xero or recommending it to clients. Outside of Xero billing for things that were supposed to be free, which after complaining they claim they will reconcile but I had to threaten with a lawyer to get that reaction. As an accounting firm it is a very risky move to partner with the Xero software platform. As a firm Your clients will know your using Xero and as a result will likely start to follow Xero using social media. When this happen your clients will receive advertisements about other Accounting firms partnered with Xero. The problem isn’t that you will loose your clients, but this makes you look really bad in front of your clients that you are recommending a software that recommends other accountants outside your firm. This actually happened to me in Canada, and the response of the Canadian Xero team was simply that they didn’t intend on these promotions to be received by the clients of my firm. They didn’t care, they didn’t apologize, they didn’t even acknowledge what they did was wrong, it was evident that they prioritized their growth over their existing partners, at least in Canada. Even The Canadian director of Xero comments where limited to telling me ” I understand that you need to make important decisions in the best interest of your firm”. To me this was a clear message that he doesn’t care. As a small business the software was historically leading, recently, many clients are having issues logging in
It took me a while, but I am a Xero convert!
Comments: When I first began using Xero, I had heard a lot about it and was skeptical. Surely, no software could be so "all that"! I was introduced to it by a colleague who has converted the whole of her mid-size accountancy practice to it, and literally within a day and a half (which did include watching some of the short but very clear tutorial videos) I was not only up and running, but felt confident using it, finding my way around it, locating and fixing errors etc. It's literally that simple and straightforward. It's also incredibly stable - I think in 3 years it's only been offline (to my knowledge) 3 times, each for a very short period. I've also not found ANY bugs so far - almost unheard of! - and the support is fantastic, even though it's online.
Provided it's set up properly, Xero is probably the most friendly accounting software - to non-accountants that is - of any I've ever come across. Back in the 90's, MYOB revolutionised accounting software for small business, but Xero takes it to a whole new level, by removing so much of the data entry work that takes time, leaves room for errors and is in general a pain, when you'd rather be - you know, running your business. With Xero, it's up to the individual operator how much they want to automate their accounting transactions; if you want to, you can use the really powerful, but still simple tools to do a lot of the legwork for you. If you prefer to do it more manually, that's OK too - it's still simple and very quick and easy to use.
Xero is constantly adding and refining its software. Inventory control is an area I'd like to see strengthened, but that's already way ahead of where it was a couple of years ago. Similarly processing payments in advance. But these are relatively small niggles which for the majority of small businesses don't present any issue.