Xero Review: Easy-to-use Software for Small Businesses

Xero-logoPrice Range: $9 – 70/Month
Free Trial: Yes
Availability: Android, iOS, Web, Windows
Who it’s for: Freelancers, Small Business, Non-Profit
Compatible with: Stripe, Paypal, ADP, Vend, Deputy, Stitch Labs, ZenPayroll, Expensify, BodeTree, WorkflowMax, Evernote, Square, Bill.com, Harvest, Squarespace, Kabbage
Our Rating:

“Beautiful Accounting Software”

Xero was originally founded in New Zealand in 2006. It was developed in a small office and quickly began to grow as a Quickbooks alternative. Now Xero is a publicly traded company in the New Zealand Stock Exchange and is ranked one of its top 20 companies.

Xero is a small business’s all in one accounting platform. Small businesses in service, retail, ecommerce, manufacturing and even food industries will benefit the most because of the software and features that Xero has to offer.

Advantages of Using Xero

Xero is ran entirely online, or in the cloud

This allows the user to access their account anytime or anywhere. Additionally, multiple users can be logged in at the same time. This feature permits multiple employees to work at the same time from different places or offices. With online accounting software like Xero, nothing needs to be downloaded or installed. No setup fees, upgrade costs, or contracts are required. You simply sign up, login and begin your accounting work anytime, anywhere.

Xero’s Tools Encourage an Organized and Efficient Work Space

The Bank Reconciliation features automatically matches invoices and receipts with the charges from your bank. All that needs to be done is click OK to confirm the transaction. There is no need to search for invoices to check the amount because Xero does the work for you. Xero has also made it easy to run reports and create statistical information to fit your desires. You can know the status of inventory, purchase orders, and bank statements with just a few clicks of a button.

Xero Connects Xero Connects with Over 400 Third Party Apps

Some of the more popular integrations include Paypal, Squarespace, Shopify, and Salesforce. Integrated services can run along with Xero so the payments flow directly into your account while being automatically recorded in the system, saving you more time and more money.

Excellent Mobile Environment

The Xero mobile app has many features for managing your business including sending invoices to customers from anywhere. The customer will then receive the invoice and will be given the option to pay online right then and there. It allows small businesses to spend less time sending out invoices back at the office and waiting and instead just have all the work done while you are running the front end of the business. Additionally, files can be attached to the invoices like quotes or contracts. Having all of the files and documents in one place can improve the customer’s quality of service because everything is made easy for them. The customers can also have the option of opening a free account to store all of the invoices sent to them. Improving the customer’s experience will grow your business and build an unforgettable reputation.

Excellent Online Training Videos

Xero 101 makes it very easy for anyone to use their software. Xero 101 is free feature that allows users to watch videos about setting up an account, using the basic features, and even using the more advanced parts of the system. There are numerous how to videos on banking, sales, payroll, and even how to use Xero on different devices like an iPad or cellular phone. The training is all done by Xero, so it saves your company time and money of hiring someone to train multiple employees that may have different skill sets. The education library is full of ways to learn more about Xero and how the interface and system is used.

Areas Xero Has Room for Improvement

Lack of bank relationships

The relationships allow the software to be connected with your bank accounts. If your bank is not partnered with Xero yet then it may be harder or even slower to connect and link the system and accounts. However, the software is continuing to grow and is adding new banks and third party companies continuously.

Price

Another con of Xero is the price comparison to its competitors. Depending on certain plans it can be slightly more expensive than similar plans with different software products. The difference isn’t huge but it is obviously more expensive. Plans start at $9 per month and range to $70 per month.

Final Verdict

Overall, Xero is perfect for small businesses for financial planning and accounting practices. Xero was created to help any small business grow. The numerous features and add ons make Xero a great alternative to Quickbooks. Getting started is easy and learning how to use the system is made easy too. To learn more or chat online with a Xero representative, visit Xero’s website, www.xero.com/us/. Or download the free trial, www.xero.com/us/signup/.

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PROS:

  • Easy to get your company up and running
  • Manage your business from anywhere
  • Simplicity of the various functions and features
  • Hundreds of add on apps that integrate with Xero to better manage your business

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CONS:

  • Not all banks integrate with Xero yet so that impacts your automatic feeds

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