When you run a side hustle, start-up or small business, every dollar counts. So, deciding where to invest your budget can be tricky.
There are so many tools out there, from social media management tools to small company accounting software, it can be hard to know which ones are best for your business.
Of course, there’s one area of business that every entrepreneur has to deal with, no matter where they are based in the world, which industry they are in, or how big their operation is.
Accounting, finance and taxes.
In fact, GoDaddy’s Venture Forward Research team recently found that 47.6% of Canadian entrepreneurs named these as their biggest money challenges:
- Finding funding
- Keeping up with rising material costs
- Staying on top of taxes
The good news is that when it comes to managing finances, online accounting software can come in extremely handy.
So, in this blog, we’ll look at the benefits of using a small business accounting system like Xero.
Do better business with Xero - FREE for six months. Xero accounting makes it quicker and easier for small businesses to send invoices, reconcile payments and manage finances. Claim offer.
First things first, what is Xero?
Xero is an online accounting tool that was designed specifically to help small businesses and entrepreneurs.
The software connects to your bank account/s and your clients to help you manage both your business balance and the projects you undertake.
You can also share the details in the dashboard with your accounting professional.
Established in 2006, Xero is now trusted by more than four million subscribers worldwide.
11 benefits of small company accounting software like Xero
Here are 11 ways Xero can help you spend less time managing money and more time making it:
1. Never chase an invoice again
Xero can be set to send out invoice reminders every morning. You can turn them on or off, depending on how frequently you want to chase clients.
You can even just turn reminders on for a single customer.
Invoices can also be sent out with your own branding and payment options included.
2. Stay on top of your cash flow
Xero’s user-friendly dashboard can display data on invoices owed to you and bills to be paid side by side, so you can see your predicted end balance for a specific time period (such as the next 30 days).
This should keep you from lying awake at night counting sums rather than sheep.
You can also check information like your largest operating expenses and gross profit.
3. Share your data with your advisor anytime
Discuss the health of your business with your chosen accounting professional at any time, by sharing the data in your dashboard.
4. Manage your accounts anywhere
Xero’s small company accounting software lets you carry out tasks such as creating invoices and checking your cash flow wherever you are -- whether that’s a construction site or the Metro on the way to a meeting.
5. Easily calculate your sales tax
Xero can automatically calculate applicable taxes on transactions for GST/HST filing online.
6. Manage project budgets on the go
With Xero’s job tracking and project planning tools, you can do everything from creating quotes for particular jobs to recording time on a specific job and adding that time to an invoice.
7. Stop doing it all
When you run your own business, you wear all the hats. You’re expected to be everyone, from the owner and the IT expert to the talent and – let’s be honest – the caterer and cleaner, too.
Getting your accounting right can be the making of your business. Automating the process should not just save you time, but lead to peace of mind, too.
8. Get industry-specific help
Xero has inbuilt features for everyone from retailers and construction companies to non-profits and Amazon sellers.
For example, Xero can help Amazon sellers reconcile Fulfillment by Amazon transactions. One less thing for you to do.
9. Free 24/7 support
If you need help, Xero’s support team are available online or over the phone all day, every day.
10. Reconcile in seconds
Xero imports and categorises your latest bank transactions, freeing up time to spend on tasks that will move your business forward.
11. Start for free
GoDaddy has teamed up with Xero to offer a six-month free trial of accounting software across its Starter, Standard, Premium and Ultimate plans.
Claim your offer here before March 21, 2025. No promo code is needed, and you can cancel anytime.
* This offer (100% off Xero’s then-current list price for six consecutive months) is only available to subscribers to new business edition subscriptions who redeem this offer via this pricing page. After 6 months, Xero’s then-current list price will apply. Xero reserves the right to change its list price, charges and billings terms at any time at its sole discretion. This offer cannot be redeemed in conjunction with third-party or other Xero offers. Prices are listed in local currency and inclusive of taxes (if any). This offer ends March 31, 2025. Xero reserves the right to change or cancel this offer at any time at its sole discretion. This offer and use of the Xero services are subject to Xero’s terms of use.
