Funding, marketing and hiring staff are just a few of the issues that new businesses face.
The aim of small business accounting software is to alleviate some of the stress of these challenges and to ultimately ensure that they are conquered as easily and as quickly as possible.
Recently, a multitude of accounting software products has hit the market, with a particularly large jump in the number of start-up businesses using cloud-based products and utilising add-ons. These provide all-encompassing solutions that help such businesses take some of the more mundane bookkeeping functions in house to reduce costs.
Some of the major problems that businesses face can include:
- Cash Flow – There are enough good ideas and leads for the business to launch, but sometimes a shortage of cash to see these ideas through to fruition.
- Time – With so many tasks to complete and not enough hours in the day, prioritising is key. Bookkeeping and finances should fit around the business owner without necessarily dictating how they spend their time.
- Geography – New businessmen and women often need to follow where the work is and cannot always be chained to a desktop computer with software installed on the hard drive.
Xero is designed to look great and to, more importantly, save time and money.
So, looking at each of these issues in turn, how exactly does Xero alleviate these problems and allow the business owner to concentrate on running their company?
- Cash Flow – Xero’s prices start from £9 per month for businesses with fewer than 20 bank statement lines and five invoices per month. Exceeding these limits for one month will mean a price increase only for that month; the price will fall again once the transactions reduce back below the limit. Xero employs a monthly subscription model, therefore costs can be managed with no unexpected or hidden price hikes. The pricing compares favourably against competitors, both cloud and desktop based.
- Time – Their design ensures that many of its functions are available at the click of a button. For example, Xero’s automatic bank feeds can be set up in a matter of minutes and can be refreshed in an instant to allow bank transactions to flow into the account. Xero then helpfully suggests invoices to match the bank statement line. Finally, bank rules can be set up to deal with recurring items quickly on the bank statement.
- Geography – The Xero Touch app is available from the app store and allows the business owner to view invoices, bank balances and expense claims on their mobile devices wherever they are. These cloud-based products have progressed with the modern world and are largely available on multiple platforms. This massively relieves the pressure in regards to working from different locations when starting up a new business, particularly if you’re a Freelancer or Contractor.
As soon as Xero is set up and implemented within a business, the efficiency savings can be seen almost immediately.
For more information on how Tait Walker can help you implement Xero within your business, contact Stuart Moody on 0191 285 0321 or stuart.moody@taitwalker.co.uk.
