The 5 reasons we recommend Xero for SMEs.

These days, all SMEs are using cloud-based accounting software. It’s made it easier than ever to manage your business finances. Frankly, if you’re not on the cloud yet, you’re far enough behind that you might as well be counting coins by candlelight. 

Originally, the three best platforms for SMEs have been MYOB, Quickbooks and Xero. Yet over the last 10 years, Xero has surged ahead while the other brands have fallen behind. Xero feels like the only truly future-proof accounting platform out there, and their software is always evolving.

This is why we’ve gradually switched to using Xero for all of our back-end operations. We’re a Gold Partner Xero Certifed Firm, and we strongly recommend that SMEs use this software. Here are 5 reasons why. 

1. They listen to their customers and focus on the future.

Xero has become the leading accounting platform because they’re constantly looking to the future and evolving their product. Technology and financial regulations both move fast, yet Xero knows how to keep pace. They’re constantly optimising their software to stay relevant & up-to-date with consumer needs.

So how do they achieve this? By actually listening to their customers. Xero has gradually developed a strong reputation for taking consumer feedback seriously. A quick LinkedIn search reveals that they have over 300 product managers, a much higher-than-average number. This shows just how invested they are in continuously improving their service.

What started as a small local firm servicing a handful of NZ & Australian SMEs has since grown into a multinational company with over 3 million users. Yet it’s clear from Xero’s approach that they haven’t lost any of that community-minded spirit.

2. Using Xero will save you a lot of time and money.

Xero automates a lot of the data entry and accounting reporting that you’d normally do by hand. Once your SME starts to scale & grow, accounting can really start to eat away at your time. It’s hard to overstate just how much of a difference using Xero makes when it comes to getting this time back. 

Running a small business is undeniably busy work, so a lot of SME owners are likely to be paying an employee or contractor to handle their finances. In this case, the time that’s saved by using cloud-based accounting software like Xero will gradually translate into some serious financial savings over a long period.

If you run a business where you work with your client’s finances – as we do – then the benefits are even more obvious. Since we’ve implemented Xero here at Rees Group, we’ve been able to seriously streamline the amount of time spent on preparing compliance work and devote a lot more time to giving our clients in-depth advice about the future. 

3. It makes working with your accountant and business advisor so much easier.

That brings me to the other key reason we love using Xero – it makes communicating with our SME clients a more seamless experience. Ultimately, this gives us a lot more time to work on strategy and provide robust commercial advice to our clients. It’s an approach that delivers a lot more long-term value for the client.

Xero allows us to work directly onto the client’s file, which saves everyone a lot of time. This tool alone saves a lot of back-and-forth conversations, and it’s just one of many ways that cloud-based accounting software simplifies compliance. 

It’s largely for this reason that a lot of accounting firms will only work with SMEs that use Xero. We’re a little more easygoing when it comes to our client’s personal choices, but as a Gold Partner Xero Certified Firm, we really do recommend that all SMEs give it a go.

4. It’s easily integrated with other devices and apps.

The cloud-based nature of the program means that you can access it on your phone or laptop from anywhere. All you need to do is visit Xero on an internet browser, and you’re not required to download any software onto your device.

It also integrates well with a lot of existing software and apps that businesses are already using. You can easily incorporate timesheet data, and sync information from popular phone apps like Expenses and Projects.

It even works seamlessly with more complex software, like the document management program Hubdoc, or with analytics & reporting tools like Spotlight and Fathom

5. They understand common pain points like invoicing, internal reporting and slow-moving bank records. 

There are a few areas where the benefits of Xero’s automated assistance really stand out. 

For instance, their invoicing system is intuitive and easy to use, sending out E-invoices to the client instantly and making the whole payment process simpler from start to finish. Chasing invoices is often cited as one of the biggest pain points for SMEs and sole traders who are just starting out, and we’ve found that this feature goes a long way to increasing customer collections.

Xero’s interface with financial institutions is also excellent, featuring live transaction records and smart tools that automatically capture and allocate payments into easy to understand categories. You can then drill down into these groups for more detailed information on specific payments.

Finally, an in-built reporting tool makes it easy to create customisable reports for financial analysis and internal management. Xero provides SMEs with a whole range of handy accounting tools, but these 3 are the ones where the convenience really shows.


These are 5 of the reasons that we love being a Gold Partner Xero Certified Firm, and why we recommend it to our SME clients.

It’s also important to remember that whilst cloud-based accounting software is amazing, it’s only part of the picture when it comes to growing your business. There’s no substitute for good advice.

If you’re thinking about using Xero in your SME, get in touch with one of our experienced business advisors today. They’re Xero experts, and they’ll walk you through the entire setup process, showing you how to use the software in a simple, easy-to-understand way.

The information in this article is of a general nature. It does not take your specific needs or circumstances into consideration. You should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.

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