Spreadsheets are highly customisable. If you’ve been using them for a while, you likely have them set up just the way you want. But spreadsheets are limited in what they can do, and they often rely on manual data entry. This means that your spreadsheets are at risk of being wrong due to human error.
You can avoid those errors by switching to an accounting system that automates much of the work that goes into keeping spreadsheets up to date. Xero is a multi-function bookkeeping and accounting program that does the data entry for you. It also fundamentally changes how your company handles finances across the board. If you’ve been using spreadsheets and want to decrease the amount of manual work you put into your financial tracking, Xero is a marvellous option. It may be time to make the switch.
What Is Xero?
Xero is accounting software, but it’s more than just a glorified spreadsheet. Xero offers a range of services designed to make tracking financial data and facilitating cash flow easier. The software automates so many tasks that the risk of human error drops substantially.
Compare that to a spreadsheet program like Excel or Google Sheets, where manual entry can introduce small errors that throw off your bookkeeping and accounting data. You can see why Xero is a winner.
Much of the manual data entry that you need to do in a spreadsheet isn’t necessary in Xero. Instead, the program has features like multi-channel capture. You can use a picture of a receipt or other document to auto-fill records. Take a picture or upload an existing picture of the document, and Xero will scan the information and transfer it to the relevant rows or columns.
Xero connects to multiple platforms like Shopify, helping you keep track of sales and fees. The program also allows you to connect to most banks so that transactions from your account automatically load into the program. You can load as many as 12 months of previous data, and all connections are secure.
The process is customisable and lets you set rules for different types of transactions, such as recurring bills or purchases. If your bank doesn’t allow this type of connection, you can still upload the data to Xero with an exported file.
Data entry isn’t the only task that Xero can handle. You can also use the program to:
- Issue invoices and purchase orders
- Track the time and expenses for a project
- Create payroll reports
- Calculate payroll taxes
- Pay bills
When Should You Stick With Spreadsheets?
This isn’t to say that no one should be using spreadsheets. If your business is low-tech and needs to report only company-wide income and expenditure with no payroll or invoicing, perhaps a spreadsheet is all you need. Think of an independent contractor with an uncomplicated tax structure who wants to track only basic income and outgoings.
But once you start adding in payroll, invoicing, sales, or multiple divisions and projects, those spreadsheets may not be adequate for all the tracking and reconciliation you need to do. That’s when moving from spreadsheets to Xero makes sense.
What Are the Key Indications That You Need Xero?
Three indicators stand out when you’re deciding whether to switch to Xero. The first is that you’ve been noticing errors in your spreadsheets. Even the smartest, most astute person can make a data entry error. However, those mistakes can cost you time and money. If you really want to eliminate transposed or missing numbers along with other human-made errors, switching to Xero is a good idea.
Another indication that you need to move to Xero is that your business is expanding. As previously mentioned, as your business grows more complex, you need more support. The automation and links between platforms and bank feeds alone can help your company’s financial tasks run more smoothly.
Finally, if you’ve noticed that you need more people to spend more time on data entry and generating reports, it might be time to switch to Xero. Let people focus on their main duties at work. There may be times when you want someone doing manual data entry. However, Xero reduces the need to pull other staff away from unrelated projects.
Does Xero Require a Subscription?
Xero does require a monthly subscription, and you have multiple pricing tiers to choose from. The cost of each tier is comparatively low, and Xero often has deals for new subscribers. Best of all, the fee covers everyone at your company and does not increase if more people are using the system. The subscription auto-renews every month.
Each tier has a specific list of benefits. The lowest tier, for example, allows you to enter five bills and send or approve 20 invoices. You also get a 30-day cash-flow forecast. The highest tier, however, lets you enter unlimited bills and send or approve unlimited invoices. You also get a 180-day cash flow forecast, along with many other benefits such as the ability to track projects.
See What Xero Can Do for Your Company
Automation lets you focus on the really important stuff while keeping accurate records of transactions. Spreadsheets have served you well, but now it’s time to make the leap to a multifaceted financial system. Discover how Xero can help your business thrive. Sign up now to make your financial data flow easily.
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