Review of XERO the online accounting software

The monthly price tag of XERO may discourage some freelancers and small business owners. However, XERO is one of the best online accounting software. Many other online accounting applications are just copycat of XERO. First of all, I would like to say that the XERO website is the fastest that we have tested until now. A website with fast page load is so important when you create invoices, bills, receipt… On top of that, everything has been designed to speed the job of accountant, data entry clerk or freelancer.

 

Bank module of XERO:

XERO allows connecting to several bank accounts and automatically import the transactions avoiding the duplicate transactions. Then, right from the bank module, you can match the bank transactions with invoices and bills. You can also transfer the amount to another bank account. XERO is one of the best application when you deal with several bank accounts. Below you can see a screenshot of the bank transactions reconciliation page after automated import from the bank website.

Bank payment reconciliation page in XERO

Sales module of XERO:

You can create an invoice from the Xero module very quickly by choosing a pre-existing item (product or service). From the invoice module, you can connect two payment gateways: Paypal and STRIPE. Once, a payment gateway is connected you can get an instant payment from Paypal and Stripe. You can also manually record a payment on the invoice page (see screenshot).

Purchases module of XERO:

Company employees can create a purchase order in Xero. Thus, XERO can be integrated with the procurement workflow of a company. For sure, you can create a bill, a recurring bill, and a credit note.

Inventory module of XERO:

It is a great module for shops. An Inventory module is integrated into XERO. It can track the quantities of the items that you want to be tracked. Consequently, if you try to invoice a tracked item with no enough quantity left you will get an error message.

In the inventory module, you can set your product and services. Then, you can set the price for every product and service. You can export and import your list of products and services from and to XERO. You can also see the history of the changes that you have done on an item.

Payroll module of Xero

Using the Pay run module, Administrators or a dedicated user can set up employee rates, hours, contribution, expenses make bulk payments, send payslips by email or get a PDF. Afterwards, you can get detailed reports of employee wage expenses. You will be able to set up the payslips yourself adding as many allowances, deductions, and tax lines as you want. You can create a default template for all your employees. In other words, XERO allows you to manage your payroll in-house. This is great for the small businesses.

Expense claim module of Xero

Xero has a dedicated module for expense claim. An expense claim may have 2 states in XERO: awaiting approval and awaiting payment. Consequently, you can include using XERO for your company workflow.

Fixed assets module of Xero

The fixed asset module of Xero allows you to add your fixed asset in the system along with their purchase date, their purchase price, and warranty. The asset types are linked to the right asset account and it includes a depreciation account. You can operate a yearly depreciation in Xero. For sure, what you do in the fixed assets module will be reflected on the balance sheet.

Bookkeeping modules in Xero (Adviser):

Xero allows you to manually enter accounting transactions in a double-entry journal. Accountants may add accounts to the chart of accounts of Xero. Note that you can import and export the Xero chart of accounts.

List of reports in Xero:

  • Account transactions
  • Bank reconciliation summary
  • Budget manager
  • Aged Payables
  • Aged Receivables
  • Balance sheet
  • Cash Summary
  • P & L
  • Sales tax report
  • Inventory item report
  • Depreciation schedule
  • Fixed asset reconciliation
  • … many other …

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