What is the Cloud?
The cloud is basically just another word for the internet. If you are an experienced business owner who is still trying to keep up with technology lingo just think of it as the place on the internet where you will do your work. (shhhh, it’s not on your own computer anymore)
What is Xero?
Just when I thought I would demote bookkeeping to one of our “add-on” services I came across Xero cloud accounting software. Traditionally, bookkeeping has been a pain in the neck for accountants and business owners alike. But the small business accounting platforms coming out now are changing this philosophy. Xero is at the forefront of these (according to my research) and has made it fun for me to do accounting again. One look at Xero’s accounting system design and you’ll wonder how Quickbooks will catch up.
Xero claims to be the easiest accounting system out there. Their goal is to create an accounting platform that is easy to use and connects with other businesses you interact with. For example, if I do banking at Wells Fargo, I can set up a data connection to have my banking transactions automatically imported into Xero. If I do my client management on another system, that system can sync it’s data directly into Xero, making it so I don’t have to do any data entry between systems. Sound magical? It feels like it.
What Can Xero do for Customers?
Once Xero is set up, the accounting side becomes a piece of cake to manage. This leaves me (the accountant) and you (the client) with more time to talk about your business and it’s goals. It frees up time for both of us to focus on more important matters such as business strategy.
In addition, Xero’s accounting cloud system can be updated in real time. You can pull a report as of yesterday and have all your sales, invoicing, payables, and receivable data updated. That provides a real benefit for business owners who want a forward looking business.
A Glimpse into the Future
Imagine being out making sales or providing a service to someone. When the sale is made or your work completed you pull out your mobile device and look up the customer and create the invoice. You modify whatever you like on the invoice and then send the final invoice via email to the customer. At the same time the invoice is synced into your accounting system where an accounts receivable invoice is created for the customer. The customer pays you via credit card or check and your accounting system picks up on it and marks it paid by matching the invoice to the bank transaction coming in through the bank feed.
Total time reconciling your accounts receivables?
That’s just one way this evolution into cloud accounting will provide significant benefits to businesses.