Xero accounting scores a top ten review

Xero accounting is a relative ‘new kid on the block’ that is taking shape as a serious challenger to the MYOB and Quickbooks end of the market. As a small business accounting tool, this cloud based application has been attracting positive reviews – including a place in the 2010 Software Shortlist Top Ten.

If you are a small business owner or sole trader looking for flexibility, portability and a streamlined program then it is well worth checking out Xero accounting. The package doesn’t do everything – it is not a comprehensive ERP suite. But what it does, it does well. And there are an increasing number of extra add ons coming out.

Because Xero is cloud based you can access it anywhere, any time and it does not require complex integration with any of your existing software or website.

Xero accounting snapshot

Easy to use interface Powerful banking module – integrates directly with most major banks Automated processes – once your processes are set up, monthly bookkeeping and bank reconciliation take just a matter of minutes Multi currency transactions Budget management and reporting Strong support via video demonstrations Portability – access online anywhere, any time

What are the drawbacks to Xero accounting?

The lack of full functionality could be considered a drawback – although Xero doesn’t pretend to offer what it can’t provide. No doubt the application will continue to grow and expand.

One review singled out the inability to customise invoices as a drawback, but these small issues are ones that Xero is no doubt working on in their bid for continuous improvement.

Each add on has its own benefits and limitations. For example, Xero recently added a payroll feature which allows for effective set up tracking of employee details, pay runs, leave and deduction, but does not provide automatic PAYG, superannuation or leave entitlement calculations. Sufficient for small business basics, but not much more.

Overall, Xero accounting stands up as a good, simple and very easy to use accounting package, perfect for small businesses and sole traders who don’t need to get too complicated with their accounts.