Congratulations to Xero and their team for reaching the 1M subscriber milestone just a few months ago!
From day one, we have been a big supporter of Xero, even back when MYOB and QuickBooks were the flavour of the months. Xero is a markedly successful New-Zealand start-up currently going global. Already, it has offices located around the world and over 1,800 staff members. The product has been reported as a highly effective financial planning tool, providing an innovative accounting service that will not only change the way accountants work but also how businesses perform.
Every year, our team has attended XEROCON, the annual Xero conference in Australia. There were over 2,000 accountants and bookkeepers at the last annual gathering, all eager to witness how much Xero can offer to accountants and business owners to facilitate their professional structure.
The changes Xero has undergone, with its rapid level of improvement and innovation, mean that the product is truly unique from other available services. Nonetheless, there are still business owners believing that there are only limited differences in subscribing to Xero over other accounting software.
In the past few months, we have seen many business owners either DIY their Xero setup or getting experienced bookkeepers to do the setup for them, with problematic results. Some attempt to use Xero as they were previously using MYOB or Excel. Bills, hours worked and invoices were entered manually one by one to Xero after they got paid, simply for the purpose of record keeping and tax. Reports were done in Excel manually; Xero was only used to get data collected during the quarter. Super was still getting paid manually by using Super Clearing House, even though Xero can almost automate this process. These are only a few examples of how Xero was being used at a below optimal level.
It is sad to see what these business owners were doing- essentially, they were fuelling their electric cars with petrol! Hence, the efficiency of Xero usage was only at about 20%! Our role is to explain the benefits and services of Xero (not just with accounting) and demonstrate how to get Xero to collaborate with other software to ensure all information is synched together. These improvements can transform business structure and maximise both efficiency and profitability.
Here are few tips of utilising Xero:
If you are using Xero, try not to also use paper. The system should be 100% digital from input to output;
- Don’t double handle. Xero has ability to be API to most of other applications so if you are using other applications, try to link them to Xero;
- Use Xero as a collaboration platform to keep your team together. All employees should be using Xero apps to manage time-sheets, leave, payroll, projects, expense reimbursement and communications;
- If you can automate, do so.Areas you can automate include: super payment, recurring sales, sending statements to outstanding account, bank feeds andreporting;
- As Xero is constantly updating& upgrading their product, seek advice from a trusted advisor from the Xero directory listing only. We are going through serious training and qualification management system setup by Xero, and therefore will appear on this list;
- Put the required effort and feedback into the software. Xero is a community rather than just a software, we all have right to vote for the next feature to get developed.
- Finally, invest in Xero and us! Most people balk at the initial consultation and setup cost, but it is important to remember the savings to costs and time spent that will accumulate in future. Your business deserves the very best!
- Winners will be announced tonight: Accountants Daily Australian Accounting Awards 2018
- New Financial Year: It might be time to change to Xero - But how much will I save?
- (Audio) How much attention do you pay to the biggest item in your books?
- (Audio) Cloud accounting is the past, so what will be the future?
- New Feature Review - Exploring Xero Projects (Part 1)