Many accounting practices are still done the old way, but business today works in new ways. These two systems of working need to be united to make bookkeeping up to date and efficient. Xero does this effectively.
Most systems have you input transactions that occur during the month, then at the end of the month you reconcile these with the bank account.
Xero automatically enters your bank statements daily, so instead of depending on the end of the month bank statements, you now focus on transactions.
While this feature and way of doing things may take a while to learn, it isn’t called ‘Smart Reconciliation’ for nothing. Once you have got used to it, this feature simplifies the process and you will wonder why you never looked at your accounting this way before.
Where many businesses have a number of sets of books, (eg. accountants and bookkeepers often had one each), Xero prefers one ledger, with all the information available to everyone involved in the process of keeping the books. All it takes is a simple click, or search, to find any and all the information you need. Quick, easy and efficient, with all parts working together to offer results with no time wasted. There is no need to wait for one person to input figures and send it to another. It is automatically accessible to all.
Having everyone on your team able to collaborate on your accounts at alltimes,is a new concept for many, but when you think about it, it makes sense.
While the fact Xero works differently to older methods, and even some newer ones, might take time to get used to, the benefits far outweigh the learning necessary to use Xero software. There are how-to videos and step-by-step guides to help you along, and these make it simple to set up.
Is it the top rated accounting software in many countries, and there is good reason for this.