Xero the new hero
Most businesses often start out using Excel spreadsheets and then make what has always been seen, and understood, as the “natural progression” to Sage, but why follow the crowd? This blog explores why you should be using Xero and outlines the pro’s and con’s of using the more traditional accounting software packages, and why you really should consider getting your head in ‘the cloud’.
Why Excel isn’t a long-term solution
Excel can do a large number of tasks, is easily available and is very widely used in the world of business, and it would be wrong not to acknowledge this upfront. However, while the application is sturdy, the spreadsheets created while using it aren’t – and this often causes issues later on.
Common problems with Excel as an accounting software substitute
- Using Excel can be like having to know a programming language
- Setting up a good Excel spreadsheet takes time
- You need a strategy before you start
- There’s no audit trail
- It doesn’t integrate with other business applications
- Transactions recorded in Excel are difficult to track
Why accounting software is better for business
It is very much easier to use, but above all, it’s accurate. Cloud-based software is designed to be scalable, cost-effective and tailored to your business needs. Xero fits the bill for the majority of our client base, and it’s functionality is just one of the many reasons why we can’t recommend Xero enough.
You can have unlimited users, but can choose the level of access, giving you reassurance that sensitive data isn’t out in the wild. You’re guaranteed maximum uptime of the software, backups are done nightly on offsite servers, and there’s little chance of fraud due to the detailed audit trails as well as highly encrypted servers.
Reporting becomes easy, and takes far less time. Profit and loss, balance sheets, management reports, sales tax returns, depreciation schedules and foreign currency gains and losses are all prepared with a single click.
We are getting asked more and more about Xero which just shows how they have really grown and developed.
Seven reasons why accounting software is better than Excel
- Hit the ground running with confidence – Instant confidence from the get-go. When you have a clear financial view from the start, you don’t need to worry about making uninformed business decisions
- Your data is accurate – Your company’s real-time financial data is kept in one central place – online, in the cloud. Bank statement lines are fed into your software – it’s automatic, and reduces the amount of data entry and potential mistakes
- Out-of-box reports – Get most of the reports you will ever need, with a few clicks – no need to wait for month end. Real-time reports and budgets are easy to view and share
- Up-to-date information – Create the information any of your partners might need at a moment’s notice – especially important around tax time when data will be shared with an accountant or financial advisor
- You’ll have a clean audit trail – All historical information is available at your fingertips. A proper audit trail ensures your data cannot be compromised. It also records every business transaction. This includes sales contracts, payments to employees, and more
- It syncs with other business applications – When you use cloud-based software, you’ll be able to take advantage of apps that sync with your financial data. Inventory management, invoicing and a whole lot more can take the time and hassle out of small business accounting, including getting rid of receipts!
- Access to data anywhere, anytime – Give any member of your team, or Accountant, access to your data online anytime, anywhere (as long as you grant them permission to do so)
It’s about letting your business grow
Whilst it can be hard to alter the way you do business and embrace change, the potential rewards are huge. It’s time to give your business the room to grow and succeed, without restrictions, and get into the cloud.