This is why we LOVE Xero!
Posted on 22nd August 2019
Making Tax Digital hit us back in April, meaning any business registered for VAT had to keep all their accounting records digitally if they didn’t already, and submit all VAT returns using digital commercial software.
For all our clients who use our bookkeeping services, we manage your bookkeeping through Xero (and have actually been doing so since 2018). We absolutely love Xero – it is a fantastic piece of cloud bookkeeping software that allows us to maintain your business records, categorise your income and expenses, prepare and review your VAT returns and manage the end-of-year accounts and tax returns – and we are proud Gold partners!
This is why we love Xero
Sage, although much loved by accountants over the years, doesn’t provide live information. The data has to be manually entered (which can take lots of time in itself), and, owing to the fact it is not cloud based, there is little automation of the main bookkeeping processes.
With Xero, everything is up to date because it’s in real-time. All the key numbers are kept in one place, so it’s really easy to use. There’s even an option in which you can set up Xero to receive your bank account information through a feed, so you can see all your transactions in process.
Even better, this means that when you export a report, it will be 100% up to date.
Xero software is constantly updated and therefore always compliant
With desktop-based software, you constantly need to be on the ball about changes in legislation and any updates normally require purchase and installation. With Xero, it handles all of that for you. It’s always running the latest version, and, being based on the cloud, it’s constantly connected to the internet meaning your information is always being backed up.
Any changes to tax rates or legislation are set to update automatically in Xero, meaning the software is always compliant, negating the need for you to manually enter changes and updates yourself.
Mobile access for all!
In this tech-driven age, mobile access is expected for pretty much every type of software we use on our desktop PCs and laptops. It’s a huge benefit to know that you can access important information on the go.
Xero is sat on the cloud, which means that all information within the software is available at all times, provided you have access to the internet. The information is accessible through both a smartphone app and your mobile web browser, as well as being there on your laptop or desktop PC.
As well as this being a huge plus for the hectic, ever moving world we now live in, it makes it much simpler for both accountants and clients to collaborate. Gone are the days of awkward screensharing over glitchy video conferencing software!
What about security? Is bookkeeping on the cloud with Xero safe?
Despite the fact that we are constantly being fed headlines about data leaks and internet hackers, cloud bookkeeping software is extremely safe. Only the people you invite to access the software are granted permission – and it is all password protected. After a certain number of wrong password attempts, you are locked out.
Further, the information sent to Xero by your bank is all encrypted to industry standard – it has the same level of security as your online banking – so you can be safe in the knowledge that your confidential information is protected from hackers and criminals.
The servers that hold your data are highly sophisticated and extremely secure. The Xero servers are protected by a complex firewall, and are located in highly secure hosting facilities with advanced biometric technology controlling who has access to the data.
There are multiple layers of security used to protect your information, and each piece of data is backed up onto different servers which means that in the event of one Xero server being destroyed, your data can be accessed from a back-up location very easily.
We are entirely confident that Xero is the best cloud accounting software to use in terms of its ease, accessibility and superior security features.
Still haven’t made the switch to MTD?
From April 2019, all VAT registered businesses, with a turnover above the VAT threshold (£85,000), must register for Making Tax Digital and submit their VAT returns using MTD-ready software.
And, after April 2020 it will be compulsory for all sole traders, landlords, limited company directors and partnerships earning between £10k and £85k per annum and paying corporation or income tax to also make the switch, so it’s best to get on board earlier rather than later.
Get in touch with us today to find out how we can help you make the switch to Making Tax Digital with Xero.
Nicola J Sorrell -
Founder | Xero Champion | IR35 Expert
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