Xero Review – Cloud Based Accounting Software for Small Business Owners

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Xero Accounting Software for Small Businesses
There’s a fine line that you walk as a small business owner or entrepreneur. Eventually, your business’ finances expand beyond what you can handle with just PayPal and a simple business checking account. Many sole proprietors, freelancers, contractors, and small business entrepreneurs eventually find themselves growing and needed accounting software to keep up. That’s where…

There’s a fine line that you walk as a small business owner or entrepreneur. Eventually, your business’ finances expand beyond what you can handle with just PayPal and a simple business checking account. Many sole proprietors, freelancers, contractors, and small business entrepreneurs eventually find themselves growing and needed accounting software to keep up. That’s where Xero comes in to help.

Xero Accounting Software for Small Businesses

Xero offers an easy to use cloud-based accounting software system that helps small business owners and entrepreneurs keep track of their business’ finances, payroll, income, expenses, and more on any device. Xero helps you keep your finances at the tip of your fingers anytime and from anywhere around the globe. Accountants and bookkeepers can also use the cloud-based software with their small business clients, which allows them to work together through online collaboration.

Xero is a great fit for small business owners, sole proprietors, contractors, and even freelancers who are looking to implement an easy to use accounting system.

Xero Features Designed for the Mobile Small Business Owner

To say that Xero has a lot of features would be an understatement. Xero is a powerful accounting software specializing in micro and small business owners. Whether you’re looking to track and monitor your business finances while on the go, between meetings, from your local coffee shop, or from the beach, Xero lets you. It gives you the power, flexibility, and features to do so if that’s what you want.

Invoicing and Payments

Like most online accounting software, Xero lets you send your clients online invoices and accept debit card, credit card, or PayPal payments to help you get paid faster. You can add your company’s logo to Xero’s invoice templates or customize your own invoice design. One unique feature that sets Xero apart is their automated invoice payment reminders. You can tailor automated emails to your clients and customers to help you get paid faster.

Bank Account Updates

Xero lets you receive automatic updates from your bank and reconcile your accounts. The app automatically imports all of your bank and credit card transactions each day. You can set up custom rules to your credit card and bank transactions to make the reconciliation of your statements easy and straightforward.

Pay Bills

Xero helps you to pay your bills and manage your business cash flow with their software. Xero’s software lets you see what bills are due and shows you in a visual representation where your business is spending its funds. You can send bills and documents through Xero and email for your records and then attach files directly to your company’s bills to increase your record keeping efficiency, which can be a lifesaver at tax time.

Another feature of Xero is that you can set up reoccurring bill payments each month or separate time period you choose. And, you can assign any costs directly to a customer and their bill.

Track Inventory

Xero also easily allows business owners to track their inventory and manage stock control functions. Another great feature is the report Xero generates about the performance of your products and how inventory affects their performance. You can see details such as profit margins by item, stock levels, warehouse stock values, stockage dates, average purchase cost, and a host of other data points to help you use the information to make the critical business decisions about your company’s inventory ordering and product pricing.

Combine Accounting Software with Payroll

Depending on the level of plan you choose, you can add a payroll feature to your Xero software. Xero’s payroll option allows business owners and managers tools to track the number of hours your employees worked and approve vacation time. Xero’s payroll feature gives your staff the ability to access their payroll, hours, and leave request information from any device with the Xero smartphone app. They can view their pay stubs, submit timesheets, and apply for vacation all from the app.

Xero’s payroll feature allows small business owners with the ability to pay their employees with direct deposit or to print out a physical check. You can even customize the design of your check with Xero’s check designer. You can also set up to pay your employees weekly, biweekly, semimonthly, monthly, or quarterly. Additionally, Xero calculates your payroll federal and state payroll taxes and payments for you, and the company makes it simple to file your payroll taxes directly from Xero. You can even link certain payroll service providers such as Gusto or PayChex.

A few other payroll features from Xero:

  • Create reports for company payroll history, bank transactions, vacation, etc.
  • Reimburse your employees’ expenses
  • Log time in timesheets
  • Connect payroll to time management, human resources, and other apps
  • Pay employees different rates as needed
  • Allow your accountant or bookkeeper to view payroll details

Xero Subscription Plans and Free Trial Offer

Xero offers a monthly subscription plan for its services. The company has three levels of subscription plans for business owners to purchase. You can also enter the promo code, XERO30NOW to get 30% off your first six months of Xero (As of date of original publication).

The three Xero plans are:

  • Starter
  • Standard, and
  • Premium

Xero Starter Plan

The Starter plan currently costs $9 per month before the discount and includes five invoices or quotes, five bills, and 20 bank transaction reconciliations for small business owners.

Xero Standard Plan

The Standard plan costs $30 per month before the discount, and it doesn’t set a limit to the number of invoices, quotes, or bills that you can send to your customers and clients. This plan also includes Xero’s payroll management feature for up to five employees. This plan is the best value for many solopreneurs and very small businesses. It should cover most small business needs. And you can always upgrade to the Premium plan as your business grows.

Xero Premium Plan

Finally, the top level of Xero, the Premium plan costs $70 per month before the discount and covers payroll for up to ten employees. You can increase the Premium plan up to 100 employees for the payroll feature for an additional monthly cost. The Premium allows you to choose 10, 20, or 100 employees for their payroll feature, all with different price levels. The Premium plan also offers the capability to receive and pay expenses in multiple currencies for your business’ international transactions.

Free Trial

Xero offers new customers a 30-day free trial. You can also sign up and save 30% on your first 6 months. Finally, there are no ongoing contracts, so you don’t have to worry about getting locked into a long-term contract. As a small business owner, monthly payments make it easier to project certain expenses. You may find that Xero is an affordable and flexible method for managing your books, inventory, payroll, and other accounting needs.

Xero Free Trial & Save 30% for the First 6 Months: Visit the Xero website to sign up for a free 30-day trial. Be sure to use code XERO30NOW to get 30% off your first six months of Xero!

Track Your Business Anywhere

Sole proprietors, freelancers, contractors, and small business entrepreneurs often find themselves struggling to manage their business finances and need accounting software capable of keeping up with your changing needs. That’s where Xero comes in to help.

Xero is more than simply a cloud-based accounting software and app. It’s everything you need to manage and track your small business’ income and expenses all in one place, online, and on the Xero mobile app. You can manage your small business on the move, from your home office, or at the beach with the Xero app, which is available for your iPhone, iPad, or Android smartphone.

The amount of features that the company continues to add to its monthly plan is incredible. And, the software syncs with a variety of business apps that your business might already use in its day-to-day operations. You should check out their website for more information about all of the other features that weren’t listed here.

Xero is a leader in online accounting software designed specifically for small businesses. Whether you are a solo entrepreneur or a small business with 100 employees, Xero is a great accounting software solution to help you take your business to the next level. With over 860,000 customers globally, Xero makes it easy for small businesses to stay in control of their finances and enables them to seamlessly work with their employees, customers, clients, advisors, and bookkeepers.

Is Xero Right for You?

Xero offers a variety of accounting services that will fit a wide range of small businesses – from the solo entrepreneur to up to medium size businesses with inventory, employees, and payroll. Xero also has a budding community of certified bookkeepers who can help you manage your books. You can also give access to your accountant or provide the required files. And since Xero is online, you and your bookkeeper will have access, regardless of your location. This makes it a very flexible solution.

The closest competitors to Xero are QuickBooks Online, and FreshBooks.  FreshBooks is designed more for the solopreneur or small business, and QuickBooks is powerful enough and easy enough to use that it can work for the solo business, or up to medium to large businesses. Xero is somewhere in the middle in terms of features.

Which is best? Well, that depends on your business and needs, right? I know, that doesn’t quite answer your question. But the best way to know is to visit the website and poke around. Better yet, you can start a free trial and see if Xero will meet your needs and a a price point you can get on board with.

Sign up for a free Xero Trial Today: You can sign up for a free 30-day trial by visiting the Xero website. Be sure to use code XERO30NOW to get 30% off your first six months of Xero!

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About Hank Coleman

Hank Coleman is a personal finance writer and the publisher of Money Q&A, where he writes about investing, retirement, and budgeting tips. Be sure to connect with Hank on Twitter @MoneyQandA and on Facebook.

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