Xero Bookkeeping Software Review: Notes from an Experienced Bookkeeper

Let’s face it—bookkeeping, for most business owners, is boring. People go into business because they are good at a specific skill or have a passion for something. They rarely have a passion for balancing books. This is why it’s so important to find the right software to help manage your accounts. It will provide you with maximum results with minimal effort. We have prepared reviews of several software programs available and how they can impact your business. Let's start with our Xero review.

What Is Xero?

Xero is a cloud-based small business accounting software with robust accounting features, allowing small business owners to manage their cash flows, bank reconciliation processes, invoices, inventory, payroll, and more. It also enables business owners to view their financial statements in real time, helping them make informed decisions quickly.

To start, I’ve compiled a quick Xero bookkeeping software review to examine one of the newer options available that is growing in popularity. So, let’s take a look at what features Xero has to offer:

Cloud-Based Accounting Software

Xero is a cloud-based application. For those unfamiliar with the term ‘cloud,’ this simply means that Xero is an online application. All of your data is stored on a cloud or a remote server. Some of the major benefits of using cloud-based software include:

• Remote access anytime, anywhere, by multiple registered users.

• Compatibility with both Mac & PC.

• Reduced risk of data loss due to hardware failures.

• Always updated financial data, providing a more accurate snapshot of business finances.

At Darcy Bookkeeping & Business Services, we particularly like Xero’s cloud-based functionality, which allows seamless collaboration between clients, accountants, and bookkeepers.

Xero Bank Feeds

One of Xero's most valuable features is its bank feed. Syncing your Xero account with your bank account allows transactions to be imported in real-time.

Benefits include:

• Reduced data entry, saving time and money.

• Easier bank reconciliation.

• Minimized human errors.

Xero Free Online Support

Xero offers free online support via email, with response times ranging from 24 to 48 hours. While this is useful, it lacks real-time chat or phone support, which can be a downside for those needing urgent assistance.

Xero Payroll

Xero simplifies payroll management by:

• Automatically calculating superannuation contributions.

• Importing payroll batches directly into online banking.

• Generating payslips and tax summaries with ease.

Xero Invoicing

Creating invoices in Xero is easy. The software supports multi-currency transactions, tracks receivables, and can export invoices directly to customers' Xero accounts, reducing overdue payments and improving efficiency.

Xero Pricing

Xero’s pricing structure varies based on transaction volume and employee count. Pricing ranges from $35 to $115 per month, with additional discounts available through Xero partners.

Xero Reports

Xero offers standard financial reports, but customization is limited. Reports can be exported to Excel for further analysis. The ability to publish reports ensures historical data remains unchanged, providing a reliable financial snapshot.

Additional Functionalities

• Pay Bills: Track and pay bills efficiently.

• Accept Payments: Integrate with Stripe, GoCardless, and other payment gateways.

• Track Projects: Generate accurate estimates and track project costs.

• Financial Reporting: Monitor real-time financial data.

• Analytics: Get insights into cash flow, revenue, and expenses.

• Bank Connections: Set up bank feeds for automatic transaction updates.

Xero Review: Pros

• Currency Conversion: Easily convert currencies for international transactions.

• Automated Bank Feeds: Reduce manual data entry.

• User-Friendly Interface: Ideal for non-accountants.

• Integrations: Works with various third-party apps.

• Improved Cash Flow Management: Helps track finances efficiently.

• Secure Data Storage: Encrypted cloud storage ensures data protection.

• Tax Compliance: Helps businesses stay tax-compliant with automated reports.

Final Thoughts

Xero is an excellent accounting solution for small businesses, offering a range of features that simplify bookkeeping and enhance efficiency. While it lacks phone support and advanced reporting customization, its user-friendly interface, automation, and cloud-based accessibility make it a strong choice for business owners looking for a reliable bookkeeping solution.

If you need personalized assistance with Xero, our experienced and certified Xero bookkeepers can help. Give us a call at 1300 728 875 or fill out a contact form to get started.