Companies like Xero invest millions in persuading users about their easy-to-use software because it’s far more user-friendly and beneficial than old-school bulky accounting software.
Plus, Xero saves small-medium-businesses (SMBs) time they can spend on other, more important tasks like business scaling, increasing ROI, and improving customer retention.
But what if you don’t know the first thing about your accounting statements?
This raises a question: is professional help still required if you use Xero? Will it help you save money you would have to pay for an accountant?
How Does Xero Work?
Accounting and bookkeeping are often used interchangeably, but they are not the same. Bookkeeping is the process of recording the income and expenses of an individual or business in ledgers, sometimes known as “books.”
The “double ledger” approach — which states that every debit entry in a ledger will be followed by a credit — is the most popular method of doing bookkeeping. An example of this method would be that if you buy a car, your crash will be credited, but your asset will be debited.
On the flip side, accounting prepares complex and extensive reports for these so-called “books.” Profit and loss statements, debtor reports, creditor reports, and balance sheets are some of the statements Xero can be used to generate.
Can Xero Be Used by Accountants?
Xero can be used by accountants. The company offers an accountant version of their software that your accountant can log in to and verify your business reports. Xero for accountants allows accountants to serve more clients when previously they weren’t able to because accounting is a tedious process. Xero eases their work and makes it smoother.
Plus, it makes accountants far more valuable because they can direct their attention toward providing advice on improving savings, figuring out cash flow problems, and warning business owners of suspicious activity early on.
Why Use Xero When You Still Have to Hire Accountants?
“Time is money.” We all know that, but have you ever thought that time is an opportunity?
No matter what you decide to do — doing your bookkeeping yourself or hiring an accountant — Xero will save you a lot of time. Xero will also remove human errors in your bookkeeping, allowing you to dedicate your time to other things that matter.
Additionally, hiring an accountant will make certain that you put all your attention into ensuring your business is profitable while your accountant is able to present you with the best advice and backup plans.
Bookkeeping is a simple task, but not so simple at the same time. For instance, going through 100 balance sheets is easy if that’s literally your job, but doing that when you’re the boss and have to run the business? Forget it.
So, even if you use Xero, you’ll still benefit greatly by hiring an accountant. Why? Because an accountant can provide insights and expertise you don’t have, allowing you to focus on the things you do best and letting them handle things they do best.
Plus, think about this: a regular small business spends up to 60 hours a month performing bookkeeping, even if they are using Xero.
Would you rather spend 60 hours a month doing something you’re not sure about? Or would you utilize these hours to grow your business and let a professional handle your bookkeeping?
So, instead of only using Xero to manage your bookkeeping needs, hire an accountant to save time. You can use that time for pursuits like creating a brand, increasing leads, generating more interest, and making your business process more efficient.
YBM are a Xero Platinum Champion Partner, with a large number of clients using Xero and staff fully accredited to provide Xero training.
Call us today at our Orange office on 02 6362 1533 or our Molong office on 02 6366 8049