The most amazing change in the accounting environment for small business has erupted since the invention of the abacus, the cloud based accounting package Xero. Just like the abacus was a pivotal change back in those days, small business now will experience a pivotal change in the way that they view and process financial information for their business. Zero is nothing but Xero is everything.
Xero provides business owners with everything they need to improve cash flow and increase profits.
Let’s compare the accounting systems before Xero to what incredible improvements are now possible for business owners.
How things worked BC X ( Before Cloud Xero)
• Accounting data was only accessable via a local desktop or server in the office.
• Once these were damaged or stolen, the data was lost.
• In order to get around this problem, the business needed to make both on-site and offsite backups.
• One had to be or employ an IT expert in order to make sure that these backups worked when needed.
• In order to upgrade a new feature of the software, CD disks were received via the mail or downloaded from the supplier website and had to be installed on all the computers or server, again requiring an IT expert.
• In order to upload new PAYG tables, new CD disks received in the mail had to be uploaded every year.
• In order for the external accountant to see what was going on with the business, he had to be sent a copy of the file on a USB or emailed the file.
• During this time the business owner could not process or have access to the file information until he received an updated file back from the external accountant.
• The external accountant needed to deal with different versions of files belonging to different clients and had to therefore make sure he returned the correct version to the business owner.
• The programme needed to be purchased for up to a couple thousand dollars and additional licenses needed to be bought as well.
How things work AC X ( After Cloud Xero)
• No data is stored on any local computers or servers so no data can be lost should computers malfunction or be stolen.
• All that is needed is a computer to access the internet.
• There is no longer a need for manual backups as all data is stored in the cloud and backed up automatically.
• There is no need to update PAYG tax tables or upgrades to software as this is done automatically in the cloud. So a business owner no longer needs to be an IT expert or employ an IT expert.
• The accounting file can be viewed from a desktop computer, mobile phone , tablet or laptop from anywhere in the world, not just from an office.
• The live business file can be accessed by the external accountant simply by logging into the file, without disrupting the processing of information.
• The file can be accessed by many authorised persons simultaneously
• A monthly license fee is paid to use the system with no lock in contracts.
• An unlimited number of users can access the file with no additional cost.
• The cost of processing will be reduced by at least 30 %.
• Processing can be streamlined by automation compared to manual processing which is very labour intensive.
These are some of the major improvements for small business that can be realised by becoming part of the new Xero generation.
So come on what are you waiting for…..?
Accolade Accounting are experts in Xero, so join the Xero generation today by calling Neil on 0421 824 137 for a free discussion on how you can join.
Until next time … Keep Xeroing