Don't be a Zero, consider Xero.
Updated May 21, 2015
Don't be a Zero, consider Xero.
Score 5 out of 10
Overall Satisfaction with Xero
K Bowling Accounting uses Xero to complete transaction posting, bank reconciliations, and financial reporting for one client which is a social media consultant. Our client chose Xero because it integrates with Freshbooks. The client uses Xero across their whole organization. Xero addresses the problem of getting good financial data from one-system, and allows for easy bank reconciliations.
- The importing feature via bank feed, and csv is easy to use once setup correctly.
- The bank reconciliation matching and creating feature is easy to use. I like that it will memorize GL numbers for items that recur.
- The feature of merging contacts rather vendor, client, or employee is really easy and useful.
- The fact it integrates with Freshbooks, and Square sets it above some other products.
- I do wish when using the create feature in the bank reconiliation that the payee name would automatically pre-fill.
- It would be nice to be able to match an item and save the match without having to ‘ok’ or ‘reconcile’ the item immediately. It is easy to undo and start over, but a save feature could save time later on.
- The inability to modify the ‘item’ on client invoices once a payment has been applied. If you go through the trouble of removing the payment and modifying the ‘item’ the description field (which is free-form) gets wiped out.
- If the wrong bank was picked when entering a customer payment it is not easy to fix. It is easy to undo the payment, but when you re-add it does memorize the check number, etc. so you have to write down all the information prior to fixing so the information can be re-keyed. This is very inefficient when you are only changing the bank account where the deposit was made.
- It is not easy or efficient when you need to change the GL on all invoices for one vendor. Unlike QuickBooks where you can toggle back to the report that you were working from to make changes; in Xero you have to re-run the report each time.
- Since Xero is web based it allows employees in multiple states to access the system from any where which provides increases employee efficiency so they can spend more time in the field with clients.
- Since Xero is web based there is no need to employ a full-time accounting staff that has to report to an office. Staff members can easily work remotely on an as needed which saves money on folks that get paid by the hour.
- Since Xero is web based it allows tax accountants easy access to financial data for timely and accurate tax filings which should result in cost savings on tax preparation.
Xero was chosen by the client simply because it integrates with FreshBooks. I prefer QuickBooks for its ease of use, but it doesn't integrate with FreshBooks. The bank reconciliation feature of Xero is very similar to QuickBooks which is a benefit. The reporting feature in QuickBooks is a little better than Xero since it has more filter options.
- Don't do it at all
Xero seems to work well for service based organizations. It has the ability to accept large amounts for transactions via imports which saves a ton of time that would be wasted on data entry if they were done by hand. The only downfall is the inability to efficiently make changes to transactions.
4 - The owners of the company use Xero to make record deposits from clients and obtain financial data on sales and profitability of the firm. The bookkeeping firms uses Xero for transaction posting of cash based transactions to prepare bank reconciliations, and financial reports. The tax accountant uses Xero to pull financial data for tax preparation.
The client does not employ anyone in-house to support Xero. If the client has questions or has issues with Xero they contact K Bowling Accounting for help.
- Transaction Posting to get accurate profit/loss statements.
- Bank Reconciliations to get accurate cash balances.
- Sales Reporting Data to see which services are generating the most revenue.
- We were surprised to see that Xero integrates with Square.
- We were surprised to see that Paypal transactions could be imported in for easy posting.
Xero is a good product and I believe with enhancements it will continue to improve so it will be more competitive with other products on the market. As the clients comfort level with Xero increases the more likely they will be to renew. Generally speaking folks don't like change, so if something is working there is no need to move their cheese.