Xero FAQs
I use Xero and recommend it to my clients. There are many cloud accounting software solutions for you to consider, but I find Xero easy to navigate, reasonable and trustworthy.
Learn more about how Xero can help your business below and get in touch if you would like support with setting up and getting the most from this cloud-based accounting solution.
Having the right systems in place are so important and Xero really can change the way you manage your business, as well as make informed financial decisions.
What is Xero?
Xero is cloud-based accounting software that enables you to track your incomings and outgoings. It supports you with payroll and paying bills, as well as helping with practical tasks, such as sending out invoices and running balance sheets.
Because it is cloud-based, it is accessible both via your desktop computer, as well as a mobile, as an app. However, be reassured, it is completely secure. And can be integrated with other financial systems you may be using, including Stripe, Square and other POS systems.
Why use accounting software?
For those who are VAT registered, we are already obligated to use Making Tax Digital (MTD) systems for VAT returns. For self-employed individuals and landlords with an annual business or property income exceeding £50,000, MTD comes in to effect from April 2026. And they are looking into a deadline for those on incomes less than £30,000.
Effectively, this means MTD is coming for everyone and so you will need an online system no matter where you are in business.
Learn more about Making Tax Digital and the government’s plans here.
If you are not VAT registered, now is a very good time to get yourself acquainted with a trusted system that will make this transition easier.
Whilst I recommend Xero, my best advice is to ensure that your accountant is familiar with your chosen accounting software.
If you do not have an accountant, but are already set up with accounting software, then choose an accountant with relevant expertise, so that you can work together to make the most of the software you are paying for.
You can switch too – talk to me about this if you need help.
Why use Xero?
Rather than managing multiple spreadsheets and constantly referring to your bank statement, Xero allows you to easily track your money.
It’s a specially designed piece of software. The company has an established reputation and takes security of your data very seriously. This is further evidenced through their collaboration and, therefore, integration with other apps and banks, which you can ‘link together’.
Xero has also worked with HMRC on the new Making Tax Digital )MTD) rules, testing elements, and is an approved provider.
Xero also seems committed to continual improvement, listening to what customers want and need to help them run their business with ease. Furthermore, the training offered, in terms of written resources, help sections and videos are really helpful, free to use and readily available.
Personally, I and many of my clients find the usability and navigation logical too and have managed to teach sole traders the basics within an hour.
What can you do with Xero?
There is so much you can do through Xero and depending on what ‘plan’ you pay for, you can access more and functionality. Specifically, you can ‘add’ certain elements, so that you only pay for what you use.
Some of the highlights include:
- Recurring invoices
- Quotes that you can turn in to invoices
- Running payroll
- Easy to check reconciliations
- Run Profit and Loss reports
- Tracking of specific products or categories
- Storing of contact information – good for recording suppliers and customers
- Bespoke reports – letting you choose what you want to know and track telling you what you want to know.
You can create a bespoke dashboard so that, when you open Xero, key information that you are most interested in is displayed. You can also easily link your bank account for ‘real time figures’.
I believe strongly that you should have good systems in place to help you run your business, especially if you run a coffee shop or cafe. Learn more here >
How much is Xero?
The pricing for Xero does change and also depends on the types of accounting services you require and the ‘add ons’ you choose.
For the latest price points, visit:
How can I Xero HELP ME and MY BUSINESS?
For self-assessment and year end information, Xero allows you to easily run reports to give you the numbers you need. It makes it very simple for you, as well as your accountant, as everything should be accurately recorded and is easily accessible when you need it.
Xero helps to eliminate mistakes and identify any gaps well in advance of assessments and returns being due. It is so much more efficient and accurate than a spreadsheet, for example.
VAT returns can also be prepared and reviewed. There is a checklist to follow and then you can submit them directly – making life a lot easier.
If you give your accountant access to your Xero account – which can be done securely – then working on your accounts and any bookkeeping can be done together. There is no need for lost emails, confusing offline conversations and laborious paperwork trails.
How can I learn more about Xero?
Is Xero right for me?
Book a session with me and I can swiftly assess if Xero is right for your business. Let’s move away from spreadsheets and lost information and towards a more efficient digital solution.
While this blog aims to provide helpful information, it’s important to remember that every business and person is unique. So, before making any decisions, we highly recommend seeking professional advice. We want to ensure that you have all the support you need to make the best choices for your situation!
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