What are the key features of Xero cloud accounting software?

Xero Accounting originated in New Zealand back in 2006, but since then, their market has expanded across the world. Today, Xero leads the New Zealand, Australian, and United Kingdom cloud accounting markets, and there are more than 2 million Xero subscribers worldwide.

But why is Xero so popular? There are a few reasons for that.

We’ve put together a list that will take you through the top 10 key features of Xero, and what makes this cloud accounting software such a popular choice for Small Business Owners and finance professionals alike.

Read on to find out more about the top key features of Xero.

Top 10 key features of Xero Accounting

1. It’s cloud based

As Xero is a cloud-based accounting software, it means that you don’t need to install it directly onto your computer or smart device, taking up valuable space. All you need is an internet connection and you can access Xero from any device, anywhere. This means you can check on your accounts or send off an invoice even when you’re not at your desk, making your business truly mobile.

Being cloud based, it also means that you’ll always have access to the latest software instead of having to purchase the latest version every time a new update is available.

Plus, if your computer is ever stolen or damaged, you can still gain access to your accounts through the cloud.

2. You can customise your experience with add-ons

There are a multitude of different add-on applications you can make use of, and there are new add-ons being developed all the time.

These add-ons are available through the Xero Marketplace, and by choosing the right add-ons for your needs, you can create a totally customised Xero experience that suits your purposes.

3. It’s designed to be user friendly

Xero is compatible with both Windows and Mac operating systems, and there are three different subscription levels that mean you can choose the plan that suits your needs and budget.

The Xero dashboard is another really handy feature. Once you’ve configured your dashboard properly, it can give you a quick, accurate look at your business in real time.

4. It can take care of payroll

Did you know Xero can process payroll? Employees also have access to payroll through the employee portal, which means they can easily lodge time sheets, view their payslips and income statements and apply for leave. Xero can also be integrated with payroll partners like Deputy. This makes taking care of payroll simple and convenient.

5. You can send invoices and quotes to clients

Through Xero you can create professional invoices and quotes and email them directly to your clients. You can also create customised templates, and upload your logo to your templates.

If you incorporate an add-on like PayPal, clients can even make payment directly from the invoice.

6. It allows for multiple currencies

If your business deals in overseas trade (say, for example, through your online shop), Xero allows you to accept payments and receive bills in different currencies. You can also send invoices and quotes in different currencies. This can save you time and stress, as you no longer have to worry if you’ve got the exchange rates right and that you’re not overcharging clients or being underpaid.

7. You can run different reports

Xero allows you to run a number of reports to track how your business is going. There are dozens of ready-made reports that can be implemented, but you also have the ability to customise these reports to better suit your needs. You can run these reports as often as you need to.

8. It’s secure

As far as security goes, cloud accounting is a safe way to manage your accounts.

Xero has numerous security measures that help make it safe, secure and reliable: such as two-step authentication, data encryption, secure data centres in enterprise-grade hosting facilities and multi-layered network security. Plus, no-one has access to your business’s data unless you provide it to them, so you have complete control over who can and cannot view this data. 

9. You can store your files online

Gone are the days of endless stacks of paper files and boxes filled to overflowing with years of receipts and documentation.

With Xero, you’ll never have to delve through an overstuffed filing cabinet ever again. You can save all your files – invoices, expenses, receipts, data entries – as an online file. Good for the environment as you cut down on paper costs, and good for your filing system as everything is safe and secure in the cloud.

10. It makes doing your taxes easy

With Xero, your Accountant can simply log in and complete your financials in Xero. This takes the stress out of the end of financial year panic, making things simple and streamlined.

Want to learn how to get the most out of Xero cloud accounting software?

OC has partnered with The Career Academy to bring you the Certificate in Xero short course. This online course that will teach you everything you need to know about the core elements of Xero Accounting. It’s designed for both finance professionals and small business owners alike, and acts as the perfect introduction to Xero Accounting. 

Find out more about the Certificate in Xero short course here and how you can become Xero certified.