The Ultimate Guide for Xero Accounting Software: Features, Benefits, Costs & How to Get Started

However, it can be beneficial to bring one on and utilise their expertise to help your business perform. Online resources – such as those by Xero – explain topics like managing cash flow, tracking payments, and creating invoices. Read these materials to stay up to date with regulatory and other changes around tax and record keeping. Its automated calculations prevent data entry mistakes, save you time, and make tax season easier. Xero is powerful online accounting software for small businesses, automating invoicing, bank reconciliations, and reporting. Get real-time financial insights, track expenses, and keep accurate records – all in one place – to simplify cash flow management and tax preparation.

Xero Features

This tool allowed me to start a timer and allocate the time to a client or project and even specify the tasks worked on during the logged time. I was able to complete and send the invoice in less than 30 seconds. While, with most accounting software, you must generate a new report after choosing from a list of reports, the reports list in Zoho Books already has all data populated in each report. Xero is cloud-based accounting software that packs a real punch when it comes to features and functionality.

Products for accountants and bookkeepers

• Xero regularly backs up your data and protects it with multiple layers of security.
• Its customer support is limited to a single, email-based channel, and parts of its interface feel outdated.
• When I clicked “invoice” from this drop-down, I was taken to an invoice template with my company information already populated.
• The integration between Xero and Brex creates a seamless connection between corporate card spending and accounting records through automated data synchronization.
• Stay connected to your business finances with the Xero Accounting app.

(In contrast, accounting products from Sage or Zoho sync largely with other Sage or Zoho apps, not third-party solutions.) It’s hard to find a more convenient accounting solution than that. If you operate a chain restaurant, for example, choose an accounting software that you can integrate with your in-store point-of-sale (POS) system. Or, if you have a contract construction business or are a wholesaler, look for software that includes inventory management or mileage tracking and invoicing tools, respectively. This list was highly customizable, a theme I would experience while testing different features on the platform. For example, I could immediately use the search bar across the top of the screen to search my documents by keyword.

All of these features combined make NetSuite a very capable option for businesses of a suitable size. That said, it’s not a trivial investment and implementation does require specialized expertise to configure it optimally for each unique client situation. Costs can really add up both upfront and ongoing, so it’s important any prospective user has a completely validated needs case first before committing. You can use AccountEdge to track time based on the job or project.

• It’s likely ideal for growing businesses that require regular financial activities without the constraints of the Early plan.
• Gusto plans start at $39 a month (plus an additional $6 a month per payee) and include automatic payroll tax filing.
• Still, another button labeled “column” gave me the option to add or remove columns from the list of documents, such as document notes, categories, descriptions or date added.
• For email assistance, you can contact the support team directly, and they will provide detailed and timely responses to address your concerns.

But it can be a time-consuming process to work across different data sources and tools. Xero keeps all information in one secure place, and makes automatic calculations to keep your records accurate and up to date. Because Xero is based in the cloud, you can log in at any time, from anywhere, and give your accountant and bookkeeper access so you can easily work with them on your finances.

This page felt very dated—it looked totally different than Xero’s other pages. The chart of accounts is essentially your business’s central accounting hub, where you can view assets, liabilities, and equity, as well as add and code new accounts. It’s a page accountants must frequently access, which is why I was disappointed to see it looking so neglected. Affordable online accounting software with efficiency-enhancing features and easy invoicing. New users can access a free one-month trial with no credit card required.

Xero Customer Support

As you’re creating that new bill, Xero will alert you with a pop-up—and with a single click, you can have the amounts from all the other outstanding bills automatically roll into the new one. This is great for consolidating payments and avoiding missing any outstanding balances. Upon logging in to Xero, you’ll be presented with some snapshots of your business’s financial health, such as your bank balance, owed invoices, cash in and cash out, upcoming bills, and more.

Fixed Asset Management

It’s free with every subscription and compatible with iOS and Android. Additionally, we studied user reviews for independent insights into the software’s pros and cons. When looking for the best accounting software for growing businesses specifically, we focused on pricing tiers, the number of integrations and the breadth of features and tools. Big data is changing businesses, with an increasing impact each year. Growing companies need data presented in a digestible format so owners can act on the insights. During our software demo, we found that Xero’s reporting features make it easier to interpret key data analytics.

We can’t really say one’s better than the other, but we do know one will work better for your specific needs than the other—it just depends on what you’re looking for. The only experience I could have done without is the upselling of partner products. Instead of leading me to certain partner products, I would have preferred a menu item of available integration products so I could see what was available and choose the right one for my business needs.

The software is especially popular among businesses operating internationally due to its multi-currency support and global banking integrations. Real-time access to financial data combined with automated processes significantly reduces manual bookkeeping tasks. The platform automatically processes bank feeds, categorizes transactions, and updates financial records, saving hours of data entry time while maintaining accuracy. This allows businesses to focus on strategic projects rather than routine accounting tasks.

In that respect the built-in help will pay dividends as you use it to navigate any of the trickier aspects of the cloud-based layout. 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. If a direct conversation is needed, the support team offers a xero online accounting software callback service. Provide your phone number and preferred time, and a representative will contact you to resolve your query.

Features and Functionality

For example, it offers a document storage tool that allows you to drag and drop, upload or email documents to the platform, then sort and file them; however, you need to use a customizable filing system. From there, you can easily retrieve documents to attach to invoices as necessary. In my testing, I also found the software to be incredibly intuitive to use, even when dealing with advanced features like setting up workflow automations. Getting started is simple with a cloud-based platform that requires no software installation.

To determine the best accounting software, we meticulously evaluated numerous providers across specific categories. Each software was scored based on its performance in these areas, and these scores were calculated to determine the product’s total score, with a potential maximum of five stars. By employing this methodology, we were able to objectively analyze competitors based on their merits in these vital categories. The “My Cabinet” menu option was accompanied by a folder image with a plus sign on the image.