Discover the advantages of using Xero for e-commerce accounting. Streamline your financial processes and gain insights for business growth.
As your WooCommerce store grows, managing the different aspects of your business can quickly become more complex.
One area that can cause particular headaches is handling accounting for your e-commerce store. This includes managing inventory tracking, accurate sales and customer records, transaction fees, credit card deposits, and more. Fortunately, Xero, a simple cloud-based accounting software, makes it easier to manage your e-commerce accounting. You can even integrate the tool with your WooCommerce store to fully automate and streamline your accounting processes.
Read on to learn how using Xero, and syncing it to WooCommerce, can take your business to the next level.
The Benefits of Using Xero
One of the biggest advantages is the time you can save. It’s easy to use and focused on tracking key business metrics. With Xero, you can automate many of your e-commerce accounting processes, including invoicing, bills and vendors, and bank reconciliations. This frees up time that can be better spent on growing your business.
Better financial visibility
Xero’s value goes far beyond handling accounting basics. Once you have accurate data present in the tool, you can leverage reporting to make better financial decisions. The software provides real-time visibility into your accounting data, enabling you to make informed decisions about your business. You can also use it to generate reports that provide insights into your sales, expenses, inventory, and cash flow.
Another long-term benefit of using Xero is its scalability; it can easily accommodate your evolving accounting and reporting needs. The software is designed to handle large amounts of data and, when fully integrated with WooCommerce, can be customized to fit your specific business requirements – whether that’s custom fields, unique workflows, or individual reports.
Wide range of features
Xero also offers a range of tools and features that can help you manage your finances more effectively. For example, you can manage your payroll, accurately track inventory while keeping it in sync with WooCommerce (through an integration), and watch cash flow as your e-commerce sales are automatically kept in sync. This can help you streamline your operations and improve your overall business performance.
Compliance with tax laws
Using this software with your WooCommerce store can also help you stay compliant with tax laws and regulations, especially when integrated with WooCommerce. From automatically handling tax calculations to generating reports – it makes it easier to file taxes accurately and on time.
E-commerce businesses operate in a global market, and it is essential to support multi-currency transactions, especially when selling across borders. Xero offers robust multi-currency support, enabling businesses to accurately track revenue and payments in various currencies.
When syncing these transactions from WooCommerce, a good integration solution should correctly convert the currency to the business’s base currency, making it easy to keep track of transactions. This accounting platform also offers real-time exchange rate updates, ensuring that businesses always have accurate information.
Finally, using Xero can also improve collaboration between different teams in your business. The software allows you to give different team members access to separate parts of your financial data, making it easier to work together and keep everyone in the loop.
How to link Xero and WooCommerce
With the right syncing tool, integrating Xero with WooCommerce can be pretty simple. **Using MyWorks, you can easily bring the accounting tool directly into your WooCommerce admin area. MyWorks creates a seamless integration that syncs data both ways between WooCommerce and Xero.
Once you’ve added MyWorks to your WooCommerce store and connected your accounting company, all that’s left is configuring the data you’d like to sync – like customers, orders, payments, inventory, and more. At that point, your sales data will be automatically synced with the accounting tool, saving you time and reducing the risk of errors from manual entry.
Businesses can also create product categories and subcategories, easily grouping products as needed. The software also offers advanced features like product bundles, flexible sales accounts, and compatibility with product discounts. This helps to easily manage different types of products and offer them at a discounted price, increasing sales and revenue.