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How Xero is incorporating the top 3 accounting technologies to assist businesses

How Xero is incorporating the top 3 accounting technologies to assist businesses

The evolution of technology has transformed many business industries and accounting is no exception. Instead of accountants spending time laboriously inputting data and balancing journals, advanced software that performs complex actions have streamlined accounting, improved accuracy and reduced the margin of error. Xero is at the leading edge of transformation, incorporating the top three accounting technologies that have changed the world of business.

1. Cloud-based accounting systems

According to the Accounting Today 2018 Year Ahead survey1, the overall adoption of cloud accounting is between 45% and 58%, depending on company size. The study said that 45% of small companies, 57% of midsize companies and 58% of large companies select cloud accounting over desktop alternatives. Cloud-based accounting systems like Xero bring businesses many immediate benefits including:

  • Increased flexibility: Accounting and financial data can be accessed from anywhere in the world, on any device, with an Internet connection, rather than being restricted to on-site computers. As long as you have an Internet connection, you can log into Xero. This means that no matter where you are, you can use any device with an internet browser to access Xero.

Complete integration: One of the big advantages when it comes to cloud-based accounting is that it allows for the integration of many different technology sources in order to reduce manual entry processes. For example, If you use automatic bank feeds, you never have to capture lines into your cashbook. Xero can link into your internet banking and feed your statement straight into your cashbook.

  • Greater security: In an on-premises accounting software solution there is always a risk that a laptop or desktop could be stolen and the data along with it. Cloud accounting leaves no trace of financial data on your company’s computers and access to the data in the cloud is always encrypted and password protected. Your data is stored in the cloud and is subject to far more rigorous security than your internal servers. Xero uses industry-standard TSL (Transport Layer Security) to protect your personal and financial data. Your data is also encrypted when it stored on Xero’s services  and encrypted when it is transferred between data centres for backup and replication.
  • Real-time response: Software updates can take place automatically and financial reporting can take place in real-time. This means your clients or companies’ account balances are always accurate and multi-currency and multi-company transactions take place far more smoothly and efficiently.
  • Reduced maintenance: In the on-premises world, companies face significant software license and maintenance costs and might have expensive capital purchases as the software becomes more advanced. With cloud-based accounting solutions, this is never a problem as cloud-based accounting requires far less maintenance and the cloud provider takes care of all backups and updates with no need for downloading or installation.
  • Increased Flexibility: Accounting and financial data can be accessed from anywhere in the world, on any device, with an Internet connection, rather than being restricted to on-site computers. As long as you have an Internet connection, you can log into Xero. This means that no matter where you are, you can use any device with an internet browser to access Xero.

2. Automation

Automated accounting refers to automating routine, high-volume financial and accounting tasks that are prone to human error and consume valuable staff resources. By applying automation to repetitive, manual and time-intensive processes, a business’s key thinkers are freed from mundane tasks that lower engagement and inhibit their ability to focus on driving business growth. With more time for analysis, instead of implementation, businesses can become more agile in the face of increasing demands and complexity.

One of the business areas that many companies are successfully automating is the payroll process with software Xero’s payroll feature that allows you enter pay run information and email or print payslips for your employees in just a few clicks. Pay run information is automatically updated with the general ledger with the creation of payroll journals.

3. Big data and the Internet of Things (IoT)

Big data and data analytics is allowing businesses to interact with data in new ways and provide new insights into the company – helping to make better decisions. For example, Xero’s customisable dashboard allows you to see all your key information in one place, so you can track your bank balances, invoices, bills and outstanding payments.

Grow your business using the top 3 accounting technologies

At GGD accounting, we understand that every business has different needs and requirements. As Xero Gold Partners, we are able to assist customers with Xero’s leading accounting solutions in the cloud. For more information contact our Xero team today.

1 https://www.accountingtoday.com/slideshow/2018-in-numbers-for-the-accounting-profession

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