As your small e-commerce business grows, managing the different aspects of your online store can quickly become more complex. One area that can cause particular headaches is accounting and bookkeeping. This includes managing inventory tracking, accurate sales and customer records, transaction fees, credit card deposits, and more.
Fortunately, you can simplify things with Xero, a cloud-based accounting software. Keep reading to learn more about the benefits and advantages of Xero accounting software. Learn how e-commerce service providers like you use Xero to automate tedious accounting tasks.
TL; DR: What are the Advantages and Benefits of Xero Accounting Software?
- Xero cuts down the time spent on accounting and bookkeeping tasks
- It gives you clearer insights into your business‘s financial status
- Xero scales to accommodate new accounting needs as your e-commerce store grows
- It supports a wide range of features — from inventory management to payroll
- Xero supports multiple currencies and helps you comply with different tax laws and regulations
What is Xero?Â
Xero is an online accounting and bookkeeping software designed for small and medium-sized businesses as well as personal finance management.Â
It offers a wide range of features to help small businesses manage their finances more effectively, including invoicing, payroll, expense tracking, inventory management, purchase order management, and bank reconciliation. Xero also provides financial reporting tools that give businesses insights into their financial performance.
Why Use Xero for E-Commerce Accounting and Bookkeeping?Â
Here are seven reasons why Xero is a top accounting software for e-commerce businesses.
1. Xero Saves Time on Accounting Tasks
One of the biggest benefits of Xero 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 small business.
How many hours will I save each month?
- Average orders per month
- Number of products / variations on my site
- Number of new products per month
Monthly Savings
0 hours
That’s 0 days per month!
Don’t think it’s worth it? Is your time worth more than $0 per hour?
2. Xero Provides Better Financial Visibility
Xero’s value goes far beyond handling basic bookkeeping tasks. 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.
3. It is Scalable
Another long-term benefit of using Xero is its scalability; it can easily accommodate your evolving accounting and bookkeeping 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.
4. Xero Offers a Wide Range of E-Commerce Services
Xero also offers a range of tools and features that can help you manage your online store’s books effectively. For example, you can manage your payroll, accurately track inventory while keeping it in sync with WooCommerce (through an integration like MyWorks), 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 small business performance.
5. It Ensures Compliance With Tax Laws
Using Xero with your online 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.
6. Xero Supports Multiple Currencies
E-commerce service providers 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 track revenue and payments in various currencies accurately.
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.
7. It Makes It Easy to Collaborate With Your Team
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.
Automate Xero E-Commerce Accounting With MyWorks
MyWorks is the easiest way to integrate Xero with your e-commerce store, especially if you use WooCommerce or Shopify. MyWorks integrates directly into your store’s admin area, which means you don’t have to switch platforms. Plus, it syncs the data both ways, so you can access inventory information and orders in Xero and accounting data in WooCommerce or Shopify.
