Cloud-based accounting has become popular among entrepreneurs and SMEs because of its unique benefits. While many alternatives exist in the market, companies are constantly looking for the platform best suited to meet their business needs. Given that Xero is one of the best alternatives, this article will further provide additional insights on the 5 biggest benefits of using Xero.
1. Instant financial reports generation for decision making
For making informed decisions, business owners will consult their financial reports to make forecasts on the outlook of the business, and how to avoid potential issues that may arise in the future. Usually, business owners may utilize their annual audited reports to make future plans.
However, using the audited reports for planning and decision-making can be challenging since the report does not provide the real-time status of the company’s financial position. The reliability and accuracy of data due to time lag can lead to inaccurate business projections.
By using Xero, it allows you to generate reports without limit. After transactions are reconciled, real-time data is made available for reports generations. Since your Xero reports are generated based on real-time data, Xero can provide additional historical data needed to trace the past transaction and compare performance. With this, you can understand the company’s performance and draw conclusions through numbers.
You will have a clearer and accurate picture of the company’s financial situation for informed decision-making.
2. Ability to integrate with customized applications using the Xero app marketplace
Businesses may wonder how cloud accounting software caters to different industries’ needs. Xero achieves this through its growing app market. Dedicated to developing their community and app market, Xero allows integration with more than 1,000 applications to minimise the needs on manual tasks and satisfy various industries’ needs..
3. Reduce manual tasks by Syncing bank Information
A great amount of bookkeeping time is spent manually entering banking transactions into accounting software or spreadsheet. However, with the use of Xero, this issue can be resolved. Xero has created a feature from its API allowing financial institutions to connect securely to its software, generating daily bank feed to the platform. In Hong Kong, banks like HSBC, DBS Airwallex, and payment platforms ranging from Paypal to Stripe also implemented the bank feed integration in 2017 to connect their customers to Xero.
Automatic bank feeds can save an enormous amount of time on data entry, and increase the accuracy and speed of keeping the accounts up to date. Direct feeds ensure that small businesses are working with accurate data. Once the bank feed has been set up, there are additional ways to enhance the efficiency when performing bank reconciliations by creating bank rules. It removes the manual effort of inputting the same data over and over again.
4. Increase flexibility using cloud platform features
For traditional accounting systems, accounting work is usually prepared using designated computers. This system inhibits collaboration and efficiency. Using a Cloud accounting system allows users access from different devices, even smartphones, to the platform. Companies can store, retrieve, and process different financial data with just a few clicks. There is no limitation on the number of users to manage their works remotely, 24/7, and through different devices. This fosters collaboration within a team, ensuring all stakeholders and employees are on the same page.
Another important feature for Xero is the ability to automatically upgrade. Being able to work with the latest version of the software ensures that you have access to the latest features to improve your workflow. This flexibility allows companies to keep improving their efficiency, even during company scaling.
5. Global recognized secure platform
The major concern of changing from traditional accounting methods to a cloud platform is the security risk that cloud accounting may consist. Data breaches can lower a company’s revenue, ruin business relationships, and affect customer loyalty. As a customer-centric company, Xero is globally recognized as the premier information security management system (ISMS) standard to protect its users. It provides different security measures that enable users to safely use their platforms.
Xero also applies Multi-factor authentication (MFA). Not only do users need to sign up by login name and password, but they also need to use another app on smartphones or tablets for authentication. These extra steps prevent strangers from login into the account even if they have access to the password.
How FastLane can Help:
As Xero’s Hong Kong Accounting Partner since 2019, FastLane Group can provide you with an end-to-end solution to help transition your Xero accounting process from offline to online. Xero setup does not need to be difficult. We understand the practical considerations that must be made to use Xero properly. These factors include data migration, invoice setting and customization, conversion balance set-up, and how to use Xero to prepare for your audit and tax obligations.
We will provide a dedicated account manager to help facilitate your transition and to ensure effective coordination during the Xero implementing process.
In addition, FastLane can further customize your system by identifying the most appropriate third-party application suitable for your business. We can assist you with integrating both applications.
After setting up a Xero account, FastLane can provide 1-on-1 training to your team, ensuring that all of your staff are familiar with the system. If you encounter any issues while using Xero, we can act as your support to help you resolve any issues as they arise.