8.5Expert Score

Xero Books Accounting software Review 2024

If you are looking for a way to streamline the daily operations of your business, then you may be looking for a way to speed up your accounting processes. Ultimately, there are plenty and accounting programs out there that may be able to help you save time and money on your accounting. One of the most popular programs is called Xero, but is this the right program for you? It is important to learn more about the features of this program. Then, you should take a deep dive into the benefits and drawbacks before deciding if this is the right software for your business. Take a look at some of the most important information we have uncovered below. That way, you can make the best possible decision for your needs.

Price

8.5

Customer Service

9.5

Accounting Standard Features

9.5

Reporting

8

Integrations

9.2

Platforms

9

Other Expert Ranking

9

PROS

• You have access to an unlimited number of users through this program. You do not have to worry about certain users getting locked out of the program because there are already too many people logged in. 
• You have access to a free trial that lasts 30 days. This allows you to try out the various features of the program before deciding if this is right for you.
• You have access to a customizable dashboard that will display the most important information in front of you. 
• If you have questions or concerns about the program, there is an online support team that is ready to help you. 
• The program is very easy to set up. Even if you do not have a lot of technical knowledge, you should not have a lot of problems getting started. 
• You will have access to a wide range of reports that you can customize to meet your needs. That way, you have all the information you need to make decisions on the future of your company.

CONS

• There is no payroll offering available through Xero. If you are looking for a program that can help you manage payroll at your company, you will need to look elsewhere. 
• If your business is growing quickly, you may find that you outgrow the pricing plans quickly. As a result, you may need to switch to another program in short order, which can increase your expenses. 
• Even though there is an online support option available, there is no phone support option. If you are looking for someone who can help you with your business in real-time, you may be frustrated at the results. 
• While you do have access to features that can help you manage your invoices, they are not that great. The program is very basic and can be a bit clunky at times. You may get frustrated if you are trying to develop invoices for your clients. 
• Even though the program does centralize some of your information, you will still end up sending a bunch of e-mails back and forth. This can make it difficult for some of your employees to keep track of which version of your files is most recent. 

Xero as an Accounting Software: What You Need To Know

An Introduction To Xero

Xero is an accounting program that has been specifically designed for small businesses that are quickly growing. There are a lot of features you will instantly recognize when you log in to this program. You will have access to customizable reports and a convenient to ask for that will display all the information you need to make decisions about your business.

In addition, the accounting functionalities of this program are strong. It can expedite a lot of the tasks that your team currently does by hand. That way, you may be able to save a significant amount of time that you can put towards the areas of your business. What are a few examples of the biggest features of Xero?

The Main Features of Xero

If you decide to go with Xero, there are several important features that you can take advantage of. A few examples include:

Inventory Management

Without a doubt, one of the most important features of this program is inventory management. Even though the inventory management feature is simple, it is very effective. You can use this feature to keep track of how much inventory are you have in stock. You can also learn more about how items are selling, linking them directly to your purchase orders.

That way, you can quickly realize when you need to order more of something. You don’t have to worry about your inventory dropping too low, and you should not have to have so much inventory on hand that it drives up your maintenance expenses.

Banking Reconciliation

There are also bank reconciliation features available. You can link your bank account to your profile on Xero, allowing you to link your bank transactions to your transactions on Xero. Using Xero, you can keep a close eye on your cash flow. That way, you do not have to worry about anything falling through the cracks.

If necessary, you can also create separate accounts for each individual user. That way, you can keep track of who is involved, how much money they are spending, and how your cash flow is being impacted. This can go a long way toward helping you balance the books at the end of the year, particularly when tax season rolls around.

Invoice Management

Another one of the most important features of Xero is its ability to help you manage invoices. Small business owners are able to use company logos to customize their invoices. Then, it is possible to add a wide variety of payment options, allowing customers to pay their bills using a single click of the mouse.

There are numerous payment options that you can integrate with Xero. For example, you can take advantage of PayPal, Stripe, and numerous other payment options. You can also use the mobile application to send invoices while on the go. Furthermore, you can use this application to set up payment reminders. That way, you don’t have to spend a lot of time tracking down invoices that are still outstanding.

Expense Tracking

Another one of the most important features available through Xero is expense tracking. Even though this is something that is only available in the highest tier, the expense management features can be helpful. As your business begins to grow, your employees may submit claims to get reimbursed. This is one of the biggest benefits of this feature.

There is a receipt capture option that allows you to quickly take photos of receipts and important documents. That way, you can take a look at how your employees are spending money. Then, you can take a look at the claims, reimburse them, and keep your employees happy. This can help you keep track of your expenses while also encouraging your employees to stick around.

Payment Management

Payment management is another important feature of this program. You can take a look at your outstanding bills and purchase orders, compiling all the information in one place. In addition, you can bash and schedule your payments. That way, you can improve your cash flow management.

You will have access to a variety of bill organization features. That way, you can run reports quickly, importing each bank transaction. This makes it easier for you to analyze where your money is going and where it is coming from.

Customizable Reports

Another major benefit of using this program is that you will have access to customizable reports. Using this accounting software program, you can generate customized reports to take a closer look at what is happening in your business.

Even though there are a lot of accounting programs that only allow monthly reports, this feature is customizable. Therefore, you can adjust the time frame to meet your needs. This makes it easy for you to share reports, collaborate with others, and communicate with an accountant or financial advisor. This can play a major role in how you execute your business strategy.

Project Tracking

You can also take advantage of project tracking features. This makes it easier for you to calculate estimates, track the amount of time you spend on each individual project, and update your invoices. Furthermore, you can take a closer look at your cost and profitability numbers.

Even though this is a powerful teacher, it is only available at the upper tiers. Therefore, if this is something you think you need, you will need to pay for a higher plan. This is one of the best options available if you are looking for a way to track the number of hours you and your employees spend on a specific project.

Document Management

If you decide to use this application, you also have access to a comprehensive document management system. This is an online filing system, and you can use it to reduce the clutter at your business. You can upload all of your important files, paperwork, and receipts in one place.

Using this accounting platform, you can generate new reports, attach files to transactions, export spreadsheets into email documents, and share files with employees, accountants, and clients as quickly as possible.

Xero Provides Mobile Functionality as Well

If you decide to go with this software program, you will also have access to a comprehensive mobile application. The mobile application is free with every plan. Using the application, you can send invoices and payments on the go.

Furthermore, with access to this mobile application, you have access to customize reports. You can take a look at customer profiles, and respond to quotes as quickly as possible. If you have employees who are constantly on the go, then you will want to take advantage of the mobile application. It is available on all major platforms, including Android and iOS.

These are just a few of the many features available through Xero. Because there are multiple plans available, you can customize the features you need. This is a great way for you to control your expenses while still taking advantage of the best features available.

Xero: The Pros and Cons

Even though there are numerous features available through Xero, this does not necessarily mean this will be the right program for you. Instead, it is important to take a look at the benefits and drawbacks.

Clearly, there are a lot of benefits of going with this program; however, you do need to compare these to the drawbacks. This will help you figure out if the program is right for you.

You need to think carefully about these drawbacks because they could inhibit your ability to use the program effectively. After you think about the benefits and drawbacks, compare them to the needs of your company. This will help you figure out if the program is right for you.

The Pricing and Plans Available Through Xero

One of the most significant benefits of going with Xero is that a lot of the features are available in all plants. On the other hand, some of the features may be limited at lower levels. Therefore, you need to look closely at what you were getting with each individual plan. That way, you can make sure you are not paying for something you do not need, but you still have access to the features you require.

One commonality that is important to keep in mind is that you have access to an unlimited number of users at each plan. You do not have to worry about upgrading your plan purely because you need more users. This could help you limit your overhead expenses.

The plans available through Xero include:

• The Early plan is $11 per month. You have access to an unlimited number of users, five invoices, five bills, and 20 bank transactions. Unless your business is very small, you are going to end up help growing this plan very quickly. If you are looking for a small plan, this could be a good option for you because you have access to inventory tracking features. This is not something you are going to get from other accounting programs at the same price point. If you need to make a lot of transactions, this plan is not going to meet your needs.
• The Growing plan is $32 per month. You have access to an unlimited number of users, an unlimited number of invoices, an unlimited number of bills, and an unlimited number of bank transactions. If your business is growing quickly and you need extra support from your accounting software program, then this is probably the best option for you. Even though you get access to an unlimited number of certain features, you might need additional customization options as your business continues to grow.
• The Established plan is $62 per month. You have access to all of the features included with the Growing plan. You also have access to expense management features, project management features, and multiple currencies. Even though this does represent a significant increase in price tag, you are getting access to a new range of features, which could be worth it.

You should think carefully about these plans and decide which one is best for your business. Keep in mind that if you need to upgrade your business plan, this is relatively easy. You do not have to worry about encountering any issues if you scale up or back your subscription plan.

Premium Add-Ons

There are two premium features that you may want to consider for your business. The first is the ability to accept payments from your customers. You have the option to include payment services with your invoices through PayPal, Stripe, and numerous other options. That way, your customers can pay you with a single click. This is not a subscription service but instead charges you a fee for each transaction. The fee is 2.9 percent plus an additional $0.30 per transaction.

Another premium feature you might want to consider is accounts payable and accounts receivable. If you are looking for help managing your accounts payable and accounts receivable, one popular integration is through Bill.com, which will charge you $30 per month for this functionality.

A Summary: Xero is a Strong Accounting Sofware Program

In the end, Xero is a strong accounting program that provides you with access to a wide variety of features. It makes it easy for you to manage your documents, send invoices, and keep track of your expenses. There are multiple plans available that you can customize to meet your needs.

Unfortunately, when compared to other programs, the features can be a bit lacking. Furthermore, you may find that you outgrow all but the smallest plan relatively quickly. As a result, it is a program that is great for small businesses but is not ideal for larger companies. It is still a strong soccer program that has a place on our list.