Xero is a superb accounting platform for small businesses, featuring a wide range of bookkeeping, reporting, and financial planning tools for business owners of all levels of accounting experience – from new start-ups to established SME owners. If you are currently using a different platform or are migrating to a cloud-based accounting system for the first time (e.g. from spreadsheets), this article explains 8 ways in which your business can benefit from Xero accounting software.
1) Xero Is Compliant With HMRC Making Tax Digital
Making Tax Digital is changing the way that all SMEs manage their tax reporting obligations. At David Howard, we are working hard to make the transition towards HMRC Making Tax Digital as easy and stress free as possible for our customers. Xero’s tools and processes are thoroughly tested for accuracy to ensure that you remain compliant with MTD, enabling your business to evolve with tax management requirements and simplifying your reporting obligations.
2) Reporting And Invoicing Can Be Automated
Xero’s automated invoicing and reporting tools save you time and energy on bookkeeping tasks, freeing up more resources to focus on your business growth. You’ll be able to generate reports quickly and easily, giving you accurate insights into the financial health of your company at all times, aiding decision making and allowing tax saving collaboration with your accountant.
Creating invoices is quick and straightforward with Xero, with invoice templates automatically populated with your contacts’ details, and the option to link in with various online payment methods for faster payments.
You can create bulk invoices from spreadsheets, create repeating invoices, can also raise invoices on the go in the mobile app, so there are many time saving tools.
3) Extensive Software Integrations
Xero also offers extensive integrations with other software platforms, allowing you to sync your accounts and make sure all your data is up-to-date. This means that if you’re already using an existing system such as Shopify or Stripe, you can easily integrate these services with Xero, avoiding unnecessary manual data entry. There are a wealth of add-ons to utilise, which can be found at https://apps.xero.com/uk. Some very popular add ons are for example Dext for invoice processing, Approval Max for approval processes, Wise for bulk payments.
4) Excellent Cloud-Based Data Security
Security is always a priority for businesses, and Xero offers the highest levels of security for your data. Xero uses encryption to protect all your financial information, and it also has granular user access controls in place to ensure that only authorised personnel can view or edit sensitive information.
5) Prepare And File Your Tax Returns Easily
Xero offers a suite of tax management tools to facilitate easy compliance with the latest HMRC rules, and making the process of filing accurate CT and VAT returns fast and easy. With automated filing reminders, you can stay up-to-date on any deadlines and never miss important dates related to your business taxes.
If your business has employees, Xero also has features specifically tailored to payroll and HR management for small businesses. You can streamline the payroll process, automate your monthly submissions to HMRC, manage deductions for taxes and NI, reimbursements, and other payments, as well as record holidays and absences in an efficient manner.
6) Data Can Be Accessed On Mobiles Or PC From Anywhere With The Xero App
By installing the Xero app on your mobile devices, you’ll never be without your financial data, and you can stay up-to-date on everything from wherever you are working, on any device. Xero allows multiple users to access your business accounts simultaneously from different locations, making collaboration easier between remote colleagues and your accounting partners.
7) Intuitive Budgeting And Forecasting Tools
Xero is a great platform for budgeting and forecasting; you can create detailed budgets based on past expenses at the click of a button, and track performance against your budget in real time. This helps you plan for the future of your business and make smarter financial decisions.
8) Xero Has An Easy-To-Use App For UK-Based Sole Traders
Xero Go; developed specifically to help ease the burden of financial admin for sole traders in the UK provides easy access to the tools you need to meet digital record-keeping requirements as part of the upcoming overhaul of the UK tax system: Making Tax Digital for Income Tax Self Assessment (MTD for ITSA).
Small Business Accounting Services From David Howard
Xero enables business owners and accountants to collaborate on shared information at the same time through a fast and intuitive online accounting interface. At David Howard, we offer a full small business accountancy service with all the support you need to get the most value out of Xero. To find out more or for a bespoke quote, please contact us.
