It doesn’t matter whether you’re a SaaS company, you manage IT systems, or you develop software – if you work in tech, you’re going to love Xero accounting software. Xero has been a technology-first accounting solution since the day it started and prides itself on delivering a modern accounting experience that fits in perfectly with tech companies. Here are 6 ways Xero satisfies the needs and expectations of tech companies.
1. Xero’s OpenAPI
Xero has many, many amazing features that make it a tech company’s go-to accounting software, but this has to be their favourite by far! Xero lists over 700 apps that connect off the shelf but connections can also be made via middleware such as Zapier. Xero has open APIs (RESTful web service), which means that if the solution you need isn’t included in the long list of integrations available, coders can get to work and create their own.
This is very exciting for tech companies because it allows them to truly get the most out of the software and streamline their processes. A real-life example of this working in action would be with our client Provident who connected their CRM, Sugar, to Xero. They mapped the integration themselves and it is working very well for them. By having open APIs, Xero positioned itself from the outset as an agile accounting solution, making it a software tech companies naturally gravitate towards.
2. Keep track of project profitability in Xero Projects
Poor project management can bring any company to its knees over time, but for the tech company this threat is particularly menacing. Why? It all comes down to the sheer magnitude of projects tech companies deal with and how costly it is when things go wrong. According to the Harvard Business Review, one in six projects go 200% over budget and 55% of project managers say that going over budget is the primary reason for project failure. No business wants this, which is precisely why our tech clients use Xero Projects to keep projects running smoothly and within budget.
Projects was a lightweight app when it first came on the scene, but Xero has been adding to it ever since, making it increasingly popular. It is a fantastic project management software that allows you to keep a close eye on your projects without getting overwhelmed by the details. The easy to use interface means you can effortlessly find out how profitable you are on a project-by-project basis. In just a few clicks, you can assign expenses, locate important receipts, and record deposits so you will always bill the right amount for every project. Of course, Projects integrates seamlessly with your Xero accounting software and costs just $7 for one user per month ($5 for each additional active user per month). What’s not to love?
By having open APIs, Xero positioned itself from the outset as an agile accounting solution, making it a software tech companies naturally gravitate towards.
3. Time recording in Xero Projects
Under the umbrella of project management is the tricky matter of time management. Going overtime on a project is generally equated to going over budget, after all, people need to be paid for the work they provide. Keeping track of who is doing what, for how many working hours and what the cost rates are for each individual is essential to determine the true profitability of a project. The good news is you don’t need an entirely separate application to do this when you use Xero Projects.
Within Projects, you can record your time on desktop or mobile. Everyone working on a project will have an assigned ID within the app and from there they can capture and track their time, making it easier for managers to determine how long a project is going to take and precisely how much it will cost. We have found that many of our tech clients who have tried several alternative time management tools, such as Toggl and Workflow, have now settled on Xero Projects, which is a testament to how good it is.
4. Paperless options that fit right in at tech companies
Our tech clients love the fact that everything is kept securely in one place with Xero. Not only is this more efficient, but it keeps the dreaded paper stacks at bay! Paperless accounting makes sense for tech companies that are already keeping everything digital. People in tech understand that unlike with paper records, having everything securely stored in the cloud means that you can access the data you need from anywhere, at any time. The fact that Xero is a front-runner of the paperless office speaks to their natural way of working. Xero accounting software and its hundreds of intuitive integrations makes paperless working easier than ever before.
For example, Xero add-ons such as AutoEntry and Receipt Bank capture your invoices, receipts, and statements, automatically extract important details from them and transfer the data to your accounts so that you always have up to date information at your fingertips. Importing bank transactions for one-click reconciliation is another paperless task. Do supplier bills arrive by email? With Xero, these can be forwarded directly into the billing module as a payable bill. Payroll has gone paperless too! The two integrations Xero uses for payroll are SimplePay and Parolla. We could go on, but we think the advantage of using Xero accounting software to embrace a paperless office is clear!
5. Xero has an interface tech companies love
People in tech tend to have strong opinions on user interface design, but Xero is confident it satisfies expectations. “Beautiful accounting” is not their brand slogan by accident. There was no such thing as beautiful accounting before Xero. Creating an accounting software that oozed usability for all kinds of people working in all types of industries was their main priority from the beginning and the result has been a resounding success.
We’ve found that our tech clients have a respect for how intuitive and feature-rich the Xero interface is, which is a high compliment given that these are people who will have designed software themselves many times before. This UI makes it is easy to move between features, get access to what you need when you need it and keep data organised. Xero also has proved its ability to create beautiful mobile versions of the software, with three different apps on the market – Xero Accounting, Xero Expenses, and Xero Projects. The clear language Xero uses makes understanding the software a breeze and the friendly functionality of the dashboard takes the pain out of accounting for non-accountants.
6. Xero is cloud accounting
It sounds obvious, but the cloud is still a huge draw for tech companies. Xero is set up like the systems tech companies are used to using. The high expectations tech companies have from their systems is met by Xero and being in the cloud is a big part of that. It would be very tedious for these early adopters of technology to be working with accounting software that is only partly in the cloud. Xero is reassuring in that it fits in with the natural rhythm of working at tech companies.
The free-flowing communication the cloud provides is unbeatable. It means that tech companies can keep their accountant connected to Xero at all times, so that they can provide advice with ease and it will be received in real-time, no matter where in the world the accountant is based. This means that companies can make more informed financial decisions quickly, and this is very advantageous in the competitive industry that is tech. It also helps that Xero is a blue-chip company, providing a high level of cloud security that tech companies appreciate given it is such a huge aspect of their own business. The fact that Xero is on AWS and provides two-factor authentication is something tech companies recognise and it provides them with added reassurance.