The most popular accounting software available today, Xero, is trusted by millions worldwide. Although it is known for optimising financial processes from transaction tracking and cash flow, like any other SaaS product, it does have its shortcomings.
This article points out Xero’s benefits and mentions some of the caveats along the way. By knowing both the pros and cons of Xero, you can make an informed decision.
The brighter side
Easy to understand
An incredibly intuitive software, Xero makes your bookkeeping tasks much quicker and easier, especially if you are a beginner with no financial background. You can make edits to the purchase files, as well as make use of templates to help you stay on top. Xero uses machine learning, making it user-friendly and accessible. At the same time, it is powerful enough for professional accountants.
The Xero accounting software is constantly refreshed. You don’t need to update it manually, like in other applications or programs.
With consistent updates, you will always have the most recent and most modern rendition, and this is incorporated into the cost.
Reconciliation with different cloud apps
A long list of apps that integrate with Xero makes it even more powerful. Its app marketplace lists a range of existing solutions that connect seamlessly with Xero, saving time and effort for you, your accountant, and your whole team.
Best of all, these connections are already built for you. So you shouldn’t need much technical help to get started.
Don’t get confused between add-ons and integrations. Add-ons are extra tools built by Xero itself, such as Xero Projects, Xero Practice Manager, Hubdoc, and WorkflowMax. Many software providers have created their own Xero integrations. One look at Xero’s app marketplace, and you will find tools that will automate accounting and save you time for more pressing work.
Safe information backup
You can control who has access to your data. Xero protects your data with multiple layers of security, making sure you will never lose your data, and it is available 24/7. If your computer/laptop is lost, stolen, or broken, your account is backed up and protected online in the cloud.
Free trial of 30 days
Let’s be honest; we all love free trials. Most of your software subscriptions start with a free trial. You can get hands-on experience with a full version of Xero while learning accounting, bookkeeping, or business studies.
The other side
Sometimes they take more than 24 hours to respond to the queries, and the only way to get in touch with them is through sending message/email. There is no direct line to speak with them.
Slow with bigger transactions
Higher loads do affect the performance. If you notice it slowing down, it is time to understand the limits so that as your business grows, your functionality is not impacted.
Xero costs over customary desktop accounting software. If you have been using something like QuickBooks on the web, it may have cost you perhaps £180-£200 for the permit. You may choose to overhaul it after three to four years, costing you £50 every year.
Now if we compare this with Xero, there is a stark difference. Xero costs around £25 per month. This means you’d spend around £300 per year on your product.
Dependence on the web
Xero is cloud-based software, which means you would need a connection to the internet. Online business software requires a web association. Without it, you’re in a challenging situation. This makes it unacceptable when web access is inconsistent or excessively costly.
Organisations have switched to fibre optic connections for better connection and reliable speed. In a bad connection phase, Xero won’t live up to its expectations.
Report Feature drawback: Numerous clients complain about the detailing abilities accessible inside the product. They compare it to QuickBooks, where, for example, a few reports don’t need to be traded to another outside record (for example, general record).
You need to ask yourself whether you have to run point-by-point reports as often as possible. If the answer is no, this factor may not influence you enough for it to issue.
And if the answer is yes, it may feel time-consuming for you to send out specific reports to another program for a survey.