Are you a small business owner? Then you should be aware that you have limited resources to expand your company and reach a wider audience. You’ll need to find ways to save money and improve efficiency. Delegating a task such as bookkeeping to an inexperienced employee can lead to mistakes in your accounting books. Error-filled books will lead to poor decisions and misallocated resources. You’ll spend more money because of tax penalties, missed collections, late payments and others. Avoid these problems by using accounting software such as Xero or QuickBooks Online.
Xero and QuickBooks Online provide multiple benefits to small business owners like you. With help from a company that provides outsourced accounting services, you can set up either system and keep your books updated.
What are the benefits of using accounting software?
According to companies that offer outsourced accounting services, small businesses will benefit from using accounting software even for basic bookkeeping tasks. Automation reduces redundancies in your operations, cuts costs, and keeps your employees focused on productive and profitable work. These are some of the advantages of investing in accounting software for your growing small business:
- Automate sending invoices and statements to clients. The employee designated to engage with clients can schedule the sending of invoices and reminders. They don’t have to do this task manually. All they need to do is gather and categorize emails and schedule them.
- Customer support is within reach whenever you need it. Their customer service agents (bot or human) can answer your questions and provide immediate solutions.
- Cloud-based accounting software keeps your financial data secure. You can add layers of security to allow only chosen employees or outsourced partners to access your data. The servers are secure, and the encryption reduces the risk of data theft.
- It’s possible to access data from any location and whenever you need it. You or your employees don’t have to go to the office to review financial statements before creating a budget or deciding on your marketing strategy. Access your statements remotely and at your convenience.
- Protection from loss and natural disasters. Your company might lose financial documents because of fire, flooding, earthquakes, or any natural disaster. An employee might also misplace documents. Storing your documents in the cloud eliminates or at least reduces the risk of loss or damage to important financial data.
- Accounting software can generate financial reports when you need them. QuickBooks Online or Xero can generate these for you when you need them for meetings, pitches, applications for loans and others.
- If you keep inventory for your small business, it’s easy to track them using accounting software. The system enables you to identify if there have been any losses and if your inventory is at the right number.
- The system allows you to allow and process electronic payments. This feature is convenient and beneficial for both you and your customers. This simplifies your collection and payment process.
- Update in real-time. Use the most recent financial data when deciding about the allocation of resources and when you can implement a new strategy. The system can update immediately and generate the latest report when you need it.
- Eliminate errors in your accounting books. Mistake-filled books lead to poor business decisions. The software allows its users to identify mistakes and correct them immediately.
These are the benefits of using accounting software. These advantages simplify bookkeeping and other related tasks. Your team can focus on what they do best. You’ll spend less on hiring and onboarding new employees. You also don’t have to train your employees for tasks that are not within their job description and area of expertise.
What are the features of Xero?
Xero is an option to consider when choosing to invest in accounting software. Many companies that offer outsourced accounting services recommend this system to small business owners. These are some of the features that enable you to simplify and improve your accounting and bookkeeping processes:
- Complete Payables
- Accept Payments
- Bank Reconciliation
- Capture Data
- Store Financial Information
- Generate Reports
- Send Invoices
- Accounting Dashboard
- Purchase Orders
These features allow you to make real-time updates, store your financial data securely in the cloud, prevent loss or damage to documents, generate reports, send and collect invoices easily, and reconcile your bank statements just to name a few advantages. Xero’s features are user-friendly even for beginners.
What are the features of QuickBooks Online?
The other accounting software you can consider for your small business is QuickBooks Online. Here’s an overview of some of the features you can expect when you use QuickBooks Online:
- Bank Feeds
- Organized Expenses
- Receipt Capturing and Organizing
- Inventory Management
- Secure Financial Data
- Customizable Reports
QuickBooks Online provides similar benefits as Xero. Its features are easy to understand and its interface is user-friendly. Customize the features you use so that the system fits the needs of your growing small business. QuickBooks Online is worth every cent you spend because of the advantages it offers.
Choosing between the two
Now that you are aware of the benefits and features of Xero and QuickBooks Online, you might be deciding which of the two you will invest in. The answer to this question depends on your small business’ needs. Both are user and beginner friendly. An outsourced bookkeeping company can help you set up either one and teach you how to use either system effectively.
Review the accounting and bookkeeping needs of your small business to determine whether Xero or QuickBooks Online is the software you should invest in. QuickBooks Online has been around longer and has a stronger brand recall. However, Xero isn’t far behind when it comes to features that simplify and improve a small business’ accounting and bookkeeping processes.
We at Robookkeeper can assist you whenever you need bookkeeping tasks done. We have a team of experienced virtual bookkeepers that provide first-rate output in a timely manner. We update your accounting books while you concentrate on what you do best. Our team can correct any errors found in your books and provide you with real-time updates using either Xero or QuickBooks Online. You can access your financial information at your convenience because we’ll store them in the cloud. We offer quality outsourced accounting services to entrepreneurs like you.