Accounting software provides insights into the overall financial performance of your business – handling financial aspects and keeping records of business transactions. It manages accounts receivable and payable and allows cash flow tracking, revenue, and expenses.
Want to know which accounting solution is right for your company? Find out more information about the pros and cons of Xero accounting software here…
Background Data
Xero was started in New Zealand and has rapidly become one of the most popular accounting solutions serving over 1.8 million subscribers globally. These services are renowned for being mobile-friendly, having an intuitive platform, and a robust feature set.
The cloud-based accounting software is accessible from any internet-based device, giving you the ability to manage your accounting on the go. It’s also compatible with the latest mobile technologies like tablets and smartphones.
Pros and Cons of Xero Accounting Software
See a range of Xero pros and cons below:
Pros:
- Partnership – Xero allows collaboration between financial advisors, outsourced bookkeepers, and businesses as users can view transactions and published financial reports in real-time.
- User-friendly – features let you do accounting tasks such as financial reporting, reconciliations, and switching between clients much faster.
- Time-saving features – converting quotes, schedule recurring invoices, setting automatic payment reminders and attaching files are all quick and easy to do.
- Add-on integration – additional third-party add-ons automate and link data saving time and money.
- Multiple users – the cloud-based software enables setting up of multiple user levels within the account alongside different access rights which are role-based.
- Offers more than 700 integrations – running more than 50 reports to allow management of both customers and suppliers.
Cons:
- Restrictions – starter packs have limits on the number of transactions carried out each month, no use of multiple currencies, and no inventory tracking on smaller versions.
- Lack of intuitiveness – a learning curve is needed to gain experience with the dashboard organisation, and you may need professional help initially.
- Limited expense claims – with project management restricted to the most expensive plan, and no offer of multi-currency support.
- No paid notification – payments need to be individually checked on invoices, and the pay now feature can’t be used for partial payments.
Pricing
Xero offers a 30-day free trial for its online accounting software before you sign up for a subscription. There are three unique software plans to choose from:
- The Early Plan – this costs about £8.00 per month and limits you to five invoices, five bill and 20 transactions each month
- The Growing Plan – costs around £25.00 monthly and offers unlimited invoices, bills, and bank transactions
- The Established Plan – pricing here is approximately £50.00 a month and as well as unlimited invoices, bills, and bank transactions this plan includes expenses, projects, and the handling of multiple currencies.
Pricing policies may include discounted Payroll subscription, and allowance for adding extra staff members for an additional £1.00 per month.
Outsource Your Accounting Tasks
Why not choose an online accounting service that comes with a Xero certified bookkeeper? You’ll be given all the education you need to ensure you can monitor your entire accounting system minute by minute. And every financial transaction you make will be accurately recorded. Get Xero bookkeeping for all of your business needs!