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Cloud-based business software has taken the lead recently due to its numerous benefits. As opposed to conventional accounting methods, cloud software offers convenience, business integration, and ease of use. Xero is one of the most robust accounting solutions for any firm due to its sophistication, ample reports, and the ability to add unlimited users, among others. Here is everything you need to know about the software with our Xero review!
What is Xero?
Xero purports to simplify the account processes for businesses. It provides a plethora of functions, including cash flow management, billing, payments, and more. The user can create separate records for all customers, employees, suppliers, and more. The Xero bookkeeping system is easy to use and offers support for all the financial components of a business.
Xero integration is unparalleled in terms of ease of use and coverage. The main highlights of the software include:
- Reconciliation of bank transactions
- Invoice and quote management
- Management of contacts
- Records of expenses, billing, and reminders
- Detailed reports of bank account balances, cash flow, profit and loss, and more
- Easy-to-use expenses monitoring system
Xero is a complex accounting solution that combines functionality and affordability. Users can manage their invoices and avoid cash flow shortages. This feature allows for viewing outstanding voices and offers a thorough payment history. In addition to this, it speeds up the payment processes due to the ability to create professional invoices that can be edited, previewed, and sent via messaging apps or email.
Bank transactions can be categorized with only one tap of a button. This helps to keep an organized outlook of the business and make sure that bank reconciliation is as quick and smooth as possible. All expenditure is monitored by having all the spending in only one place, allowing business owners and managers to make better financial decisions. All business account details, including cash flow, bank account balance, outstanding invoices, and more, are available on the go.
Another interesting feature is the Xero app available for both Android and iOS devices, including mobile phones. The app has the same features as the Windows-based version of the software, but the desktop functionality is broader and more complex, ideal for complicated tasks. The Xero app is ideal for on-the-go monitoring and quick transactions.
Xero Pricing & Plans
Xero pricing plans are varied, offering an affordable solution for any budget. After the 30-day free trial, users can choose between three options:
- The Early Plan is $9 per month but it is reduced to $4.50 per month for the first 4 months. It includes up to 5 bills, 20 invoices and quotes, and bank transactions.
- The Growing Plan is priced at $30 per month and comes with all the perks of the Early Plan, but there are unlimited bills, quotes, and invoices.
- The Established Plan embeds all the features above and includes a few premium ones for only $60 per month: multi-currency transactions, time and cost project tracking, and claim management.
While the main difference between the plans is related to the number of bills and invoices allowed, all of them offer access to the same straightforward features. Firstly, Xero provides a customizable dashboard which covers different section: bank accounts, bills to pay, invoices owed, and total cash flow. These charts can be easily rearranged.
The sales overview page offers graphs and charts, breaking down the invoices and estimates of your business. In addition to this, there is an invoice template, and the design can be customized and tailored to needs if required. The functions in this category are as comprehensive as they could be: automatic invoice reminders, recurring invoices, bulk invoices, and even replication of previous invoices. These time-saving necessities can be a real asset to managing a business.
Other functional areas available for all plans include the client portal, where you can view, print, and even pay invoices online. In turn, customers can view and accept or decline the quotes. It is also possible to leave comments. Other highlights common to all plans include:
- Contact management
- Expense tracking
- Chart of accounts
- Accounts payable
- Checks management
- Purchase orders
- Journal entries
- Class tracking
- Sales tax, tax forms, and others
- Packing slips
- Email templates
- Importing and exporting documents
Xero Customer Service
Xero’s friendly customer service representatives can be reached online 24/7. However, it is recommended to go through their expansive support section first, as they offer detailed information split into different useful sections: payroll and employees, practice management, how to manage and create bills, and many more.
Xero Pros and Cons
We look at the pros and cons with our Xero review below.
- Affordable pricing plans suitable for all needs
- Includes a wide array of functions, well beyond basic functionality
- Offers a user-friendly mobile app to manage any transaction on-the-go
- Detailed reports, expenses management, and many more
- Does not provide customer support via phone or chat
- Has only one invoice template
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Let’s take a closer look at some of the alternatives to Xero below.
Xero vs Freshbooks
Freshbooks is one of Xero’s main alternatives. It is quite competitive as it has similar functionality and pricing. Compared to Xero, Freshbooks offers plans according to the number of clients, such as Sprout for up to 5 clients, Seedling for up to 25 clients, Evergreen for up to 250 clients and one additional user, and Mighty Oak, the premium plan that allows for unlimited clients and 5 users.
In terms of features, Freshbooks is designed around a straightforward workflow that covers creating invoices, sending them to clients, and receiving payments. On the other hand, Xero has increased utility as it covers more than just the basics: bank reconciliation, purchase orders, and even inventory tracking.
Xero Vs QuickBooks
Is Xero better than QuickBooks? Xero and QuickBooks are both great options however they do have some differences, most notably the pricing and key features.
Frequently Asked Questions (Faq)
Is Xero an ERP system?
Xero software is a cloud-based accounting system, however, third-party software integrations help Xero become usable as an ERP.
Is Xero an Australian company?
Xero was founded in New Zealand and is listed on the Australian Securities Exchange.
Is Xero free?
No, Xero is not free. It comes with 3 pricing plans:
- The Early Plan: $9 per month
- The Growing Plan: $30 per month
- The Established Plan: $60 per month
Xero Review: Parting Thoughts
All in all, Xero is the ultimate accounting solution. Despite its numerous functions, it is easy to use due to its intuitive interface. Everything is well-organized in sections and pages, offering graphs, charts, and other resources to support managerial decision-making.
In addition to this, the Xero app for mobile phones adds extra convenience since you can check all the business information on the go. Its affordable pricing plans ensure that it is a great accounting solution no matter the size of the business.
Overall, Xero is perhaps the best accounting software that combines functionality, utility, thoroughness, and a user-friendly interface.
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Accounting software for small business
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