For non-accountants running their own small business, the above headline may seem like a world away as they struggle maintaining their financial books and records on cumbersome spreadsheets, overly complicated and costly accounting systems, or worse, bunches of paper in drawers, cupboards, boxes and wherever else these records end up.
I have been around simple and complex accounting systems all of my professional life spanning some 24 years. Actually, with some of my first clients in my early years, I prepared their accounts using hand written ledgers with financial statements being hand drafted and then typed by a secretary pool. We have certainly come a long way since then.
Over that time I have used or interrogated most of the mainstream small and large systems as an outsourced accountant, auditor and CFO in reasonably large businesses. When I first started reviewing the Xero system, I was at first skeptical at how useful it could be to businesses based on how easy it seemed to use. You hardly expect a system that is easily used by non-accountants to have any real power behind it. However, Xero really does what it says on the box.
The cost effectiveness of the product makes it perfect for cost conscious start-ups to be able to use right from the start of the business ensuring that reliable financial data is readily available for your own tracking purposes or even funding opportunities should the case arise. Due diligence is made easy with a reliable financial system in place that could be interrogated from distance, given the cloud nature of the product.
Mature and more complex businesses should not discount its effectiveness with the ability to add on further modules to the base package as required. Costs again are extremely competitive with the opportunity for businesses to only subscribe to the modules that are needed by the business. How often have you looked at your accounting software solution and realized you are paying for far more than what you need. Auditing your accounts can be made far more simple as well reducing disruption to your business during this process.
The cost savings of cloud based software versus in-house servers are very substantial for the more complex business. Also for the new start-up, your information won’t be lost when you lose your laptop or spill coffee over it. The security features of Xero are very impressive ensuring your private data is protected and it’s also available to you anywhere in the world, 24/7, as long as you have an internet connection. Its compatibility across all mobile and static devices allows you to review your data simply, wherever you are.
When we speak to clients after introducing them to Xero, especially start-ups, they question why they struggled for so long with a relatively disorganized financial system and are excited about what the organized data can now do for them.
At TLB Business Advisory Services, we are Xero Certified Partners so you are assured of high-quality services with experienced professionals for all your Xero needs. To find out more about Xero and how our Accounting Outsourcing Services can deliver benefits to your business, contact us at firstname.lastname@example.org or 04 3609477.