Xero is an small business accounting software program that can meet the needs of many small to medium sized businesses. With this program, businesses manage their accounting through an online portal, which stores information to the cloud rather than locally on a computer. Mobile applications for iOS and Android devices are available that allow for access on tablets and smartphones.
Currently, there are three versions of Xero available: Starter, Standard and Premium. The starter version allows users to complete a number of basic accounting tasks. It provides income and expense tracking, sales and profitability reporting and the ability to generate W2s and 1099s. In addition, users can create and send up to five invoices, pay five bills and automatically reconcile up to 20 bank transactions using the program. Banking information can be fed directly to one’s Xero account, and it’s also possible to import data from QuickBooks or spreadsheets.
The Standard version of Xero allows users to get all of the benefits of the Starter version plus unlimited quotes and invoices, bill payments and reconciled bank transactions. The upgraded version also makes it possible to complete payroll for up to five employees and to issue direct deposits or checks. With the version, users can also file state and federal income taxes online.
The Premium version of Xero gives users every benefit from the Standard version along with payroll processing capabilities for up to 10 employees. Companies with more employees can pay additional fees to get the ability to pay more personnel. The full version also includes multiple currency functionality.
Xero is a small business accounting program that is accessed entirely online either on a computer or a mobile app. The program is one of the most affordable options for businesses, and it has a number of benefits that make it a good solution for many companies.
Compared to other online small business accounting programs that store information in the cloud instead of locally, Xero is far more complete. Even the mid-range version of the product, Xero Standard, allows users to complete functions that are missing from some cloud-based competitors like depreciation calculations. The program is incredibly easy to navigate, and when a user does encounter problems, it is very easy to find help within the program, usually making it unnecessary to contact customer support.
Another big benefit of Xero is that all versions allow for an unlimited number of users. Administrators can set up different access levels to data to ensure security. This is a feature that is virtually unheard of in other cloud-based programs.
For all of its benefits, Xero does have a few drawbacks. The cost difference between the Standard and Premier plans is large considering that the full version does not provide many additional benefits compared to the mid-range version. Also, there are a few key functions that none of the versions of Xero offer. One is that there is no way to track inventory costs with the program. Purchase order functionality is also missing. In some countries, payroll is also not available; however, it has been added in the U.S.