There are many accounting software options out there, and many have their perks, but for e-commerce businesses, Xero can’t be beaten. Let’s look at how you can use Xero for e-commerce, and how to move over to it if you are currently using different accounting software.
Xero has become firmly established as a modern, cloud-based accounting software that leverages technology to make your life easier. It is multi-award winning and has helped more than 700,000 business owners to date. Xero is not a lite version of a desktop product – it was built to be cloud-based, and the difference shows. We believe it is the smart choice for all our e-commerce clients who wish to have accurate, visible, and clear financial reports to allow for business growth
Time management at its best
As any business owner knows, time is precious. Outsourcing can be a huge help but can cost more than a fledgling business can afford. Xero cuts to the chase and removes the need for most of your tedious and time-intensive paperwork, freeing up valuable time to grow your business with little to no manual input required. It will remove the risk of data entry errors, avoid constant spreadsheet updating and keep everything related to your business’ financials in one safe cloud-based location.
And yes, of course, Xero is fully functional for the Making Tax Digital initiative, with the ability to submit VAT returns directly to HMRC.
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Ease of use
Xero will save you a lot of time, but it is also one of the most user-friendly accounting software options available. There is no need to go on courses or struggle with tutorials as the functions are clearly laid out and aim to be accessible to all, regardless of your accounting experience. There are no complicated menus to drill down through; almost everything is available within one or two clicks.
What’s more, Xero software seamlessly integrates with existing business systems. Xero will simply integrate with other software to help businesses manage sales, finances, reports, payroll, and tax.
If you do get stuck there is free unlimited support or you can use the thriving Xero Community, where users share advice and their own experiences.
Price matters
We understand that the price-point is high on your list of priorities, but once again Xero makes itself accessible to everyone from a new business, to an established brand. Prices start at £10 a month for the Starter Package, with most users opting for the Standard Package at £22. At Unicorn, we include the Xero standard package for all our clients, so you’ll never need to worry about this cost for yourself.
Location-free, just like you can be
Business no longer requires a bricks and mortar office. E-commerce businesses frequently outsource their distribution to a fulfilment centre and they are increasingly managed from remote locations. Xero is entirely cloud-based and allows multiple users to have simultaneous access, which allows you to share financial information securely with your bookkeeper or accountant instantaneously.
There is also a mobile app to help you keep your financials in check while you’re on the move. Whether you need to check the figures or snap and record your expenses while out and about , the app will allow you to stay up to date. Have your accounting finances and reports on hand wherever, whenever with Xero cloud-based software.
App compatibility
Xero is the number one accounting software app for app compatibility. By linking your other apps to Xero you’ll eliminate the need to copy data over, once again reducing your administrative time. Xero’s marketplace contains more than 700 apps, and that number is growing. Those specifically for e-commerce include Stripe, PayPal,A2X, Shopify, iZettle, WooCommerce and MailChimp, but you’ll also find your favourite apps related to time management, customer relationship management, and website management.
Internationally valid
Xero was built from the ground up to be the ultimate cloud accounting software for modern businesses. As such, it makes managing multiple currencies as straight-forward as transacting in your own currency.
Each supplier or purchaser can have a currency set as their default. The exchange rate is updated once an hour, with footnotes automatically created to display the rate on the financial statements.
When the exchange rate shifts, invoices will have a note added that shows you the unrealised gains or losses. Once the invoice is paid the final amount will be added to your gains and losses in your financial statements.
One-stop shop
You can also track your inventory through Xero. Why use accounting software and a separate inventory management system when Xero can cover both bases. By running both through Xero you can ensure that the stock levels in the accounts are always accurate, without waiting for month-end reports.
Scalability
As your eCommerce business grows, you’ll need to choose a platform that can grow with you. Xero has the flexibility and capability to scale alongside your business, giving you access to all of the tools you need, as you need them, with the ability to add more features and integrations to accommodate your business’ evolution.
Security
Your data is important, and protecting it is imperative if you want to protect not only your own business, but the trust of your customers and their valuable data too. Xero prioritises data security, using encryption and other trustworthy security measures to keep your financial information under lock and key.
We’re Xero Gold Partners
At Unicorn, we specialise in helping e-commerce businesses. We are proud Xero Gold Partners because we believe that is how we can best serve those in the e-commerce sector.
If you are using Xero but not sure how to make the most of your accounting software, we can help you capitalise in the areas that will help your business. Our expert advice and industry knowledge will always be relevant to your individual business needs to ensure that your online business growth is streamlined and supercharged.
If you’re not currently using Xero but are looking to make the move, we can help you transition smoothly. Whether you are using Sage, Quickbooks or Excel spreadsheets, we will use our specialised skills to convert your accounts to Xero.
E-commerce needs Xero
By maximising your use of Xero’s features and setting up your systems so they talk to Xero you can save considerable time and money. E-commerce is a tech-based industry by nature, so it makes sense to use accounting software that is at the cutting edge of cloud-based technology. We believe Xero is an essential tool for e-commerce business owners and we know we can make sure you get the most out of it.
Why choose Unicorn Accounting?
At Unicorn Accounting we are e-commerce accountants who help make your online business a growing success. We offer e-commerce accounting advice, financial management, bookkeeping, cash flow statement, and tax filing services to support and scale your business.
Our team of accountants and Xero-certified advisors have experience working with both small start-ups and family-run online stores to large-scale, international retail and e-commerce brands.
If you’ve got an online store, we have the best solution for you. Providing you with a financial arm to your business through our sector experience, and skills with innovative technologies. To see how we can help you maximise the scalability of your e-commerce brand all year round, get in touch with Unicorn Accounting today. Or click here to get a free quote.
Related articles
https://unicornaccounting.co.uk/blog/mtd-2021-requirements-for-e-commerce-businesses/
https://unicornaccounting.co.uk/blog/accounting-for-shopify-accountants-give-you-the-lowdown/
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