How to choose the right accounting software for your clients - WisdomInterface
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
How to choose the right accounting software for your clients
Introduction
Imagine the time you would save with a single digital ledger where you
only need to enter data once and never have to duplicate versions or
perform multiple checks.
A recent study revealed employees in Singapore businesses spend 40%
of their time completing administrative or repetitive tasks.¹
This ebook highlights the hidden costs of paper-based accounting,
transitioning to a paperless business, and how to find a change strategy
that works for your business.
Commitment from clients
When your client uses the right accounting software and starts to get an
accurate, daily view of their business financials, a few powerful things
happen: they are more familiar with their business, they’ll see cause-
and-effect more clearly, and they’ll feel empowered to involve their
accountants and bookkeepers more – which is great news for you!
Getting it right
There are many ways to assess accounting software for your clients,
and it’s worth investing the time to make the right decision – having to
switch accounting software later is no fun!
This guide outlines some of the key factors that you should look out
for to ensure you pick the right accounting software provider for your
clients. The result? The chance for you to truly partner with your clients
to provide high-quality, real-time service. This means your clients
become more productive and efficient – and they’ll thank you for it.
1
Xero Small Business Insights, October 2018
Is the accounting
software truly online?
The first and most important factor you should look out for when To run an efficient practice, you probably want to transition clients
choosing accounting software is to ensure it runs on the cloud. on to your preferred cloud accounting software. It will allow you to
The cloud is part of the internet. For example, cloud storage run a seamless operation and take full advantage of the technology’s
simply means storing your files on a company’s server, with a features, such as:
secure connection over the internet to your computer, smartphone
or other device. • instant access to client financial data
• easy, online reconciliation of transactions
Cloud accounting providers are similar, but they allow you to access
an application online instead of just storing files on one device. • a dashboard tracking key performance indicators
The advantage with cloud accounting providers is that you don’t • one single ledger and secure online collaboration with clients
need to save everything on your own machine. As long as you have
a connection to the internet, you can log in from any device using When you recommend new software to your clients, they’ll see you
a browser or an app, and have instant access to your software and as an expert. Just be warned that not everyone will adapt to the new
business data. technology at the same pace. The move to the cloud will be quite a
different journey, depending on who you’re dealing with.
But there are many cloud accounting providers, which can make it
hard to decide on the one that is right for you. So to help you make
this important decision for your clients, we’ve come up with a list of
must-have characteristics when choosing a cloud accounting solution
provider. We hope that this checklist will support you through
selecting the best online accounting software for your clients.
3
Essential features
Online invoicing
With online invoicing, many of the delays and barriers to payment can be eliminated.
That means your clients will get paid faster, have better cash flow and have more time and money to make their business grow.
One goal of invoicing online is to reduce the time between sending an invoice and receiving payment. It can make a big difference:
Speed and convenience Automated tracking and real-time reporting Save time and money
Raise invoices immediately, anytime, anywhere View payment status in real-time No more complex accounts reconciliation and cash flow
When you have the ability to raise invoices at your fingertips, Once you've sent out your invoice, what happens next? management
you no longer have to wait till you're back in the office. Your Traditionally, you would wait until the due date and keep checking Keep track of your company’s cash flow by sending invoices to
small business clients can even generate bills when visiting your bank account to see if you've been paid. And then start your clients directly from your accounting software on a weekly,
their customers or out on the road. chasing if the money hasn't arrived. But with e-invoicing comes monthly or quarterly basis.
automatic tracking – at a glance, you’ll see which invoices have
Automatic payment reminders been paid, as well as which ones are due or past due. No more wrestling with paperwork
Set up your accounting software to send out invoices No need to dig out old invoices, recreate similar ones or reuse an
automatically at specific dates and times. This takes the Create your own reminders old template. A few clicks and the new one is sent out. You also
hassle out of chasing for payments. Not all clients are the same. You can add notes and reminders for increase consistency and minimise any human error.
each client and invoice, from within the invoicing software.
Direct invoicing No more worrying about numbering your invoices correctly
When you use accounting software that is accessible by both Customise reports to suit your objectives Let your accounting software handle this, either with a unique
you and your clients, they can share the responsibility of issuing You can run ageing reports on your account receivables, so you client number or a sequential numbering system.
invoices as and when necessary. can see which of your clients are poor payers. You could then
adjust your payment terms to suit each client. Your time is money. Less time spent invoicing means more time to
Staying secure online spend managing other important areas of your business.
E-invoicing software is secure and safe to use. It uses special An automatic audit trail
encryption similar to that used by other financial institutions such No more worrying about whether or not your invoice arrived. Some
as banks. Your clients can trust it, so they're likely to respond to software will even send you automatic updates when your bill is
your invoices faster. opened by the customer.
Speed is just one competitive advantage of invoicing online, but Invoice tracking is important because neglected bills might never
the benefits don't stop there. be paid. Your small business clients can’t afford to lose money like
that. Online invoicing helps ensure nothing falls through the gaps.
4
Receive payment online, too Don’t wait for cheques to arrive in the post. The latest online payment services allow your clients to ‘pay now’ from within the invoice itself. It’s fast, easy, and means you get paid almost instantly. Customers love online payment too, because it’s quick and easy. Plus they have the option to pay by credit card, which gives them extra financial flexibility. Choose a merchant service provider that can integrate with your invoicing software. Most should. Once the service is switched on, a “pay now” button will appear on your invoices. When you email the invoice to a customer, they can click the button to pay you instantly. Did you know? One in five businesses that use Xero to send invoices offer an online payment service and just by doing so, reduce debtor days by up to 40%. In some cases, they get paid instantly! PayPal and Stripe are two examples of online payment technology that can be used by business owners to receive payment online, instantly. Learn more
Storage Store your business information online in one secure, central location with Xero. Managing and sharing your files has never been easier. Store your key business documents in the library, so all your records are stored and backed up online for easy reference and sharing. Collaborate in real-time with your clients using a shared files folder. All your records are kept in one place, making it quicker and easier to find and share information. Did you know? All of Xero’s pricing plans come with unlimited storage in our Files inbox. This means that it’s so easy for your clients to upload and share important documentation to support their financial claims. Learn more
Real-time collaboration
Multi-user and multi-device
A cloud service provider should be able to allow access to their application
through a variety of devices and operating systems, all at the same time.
The more types of devices that are supported, the easier it will be for you
and your team to access. So at the very minimum, your cloud accounting
service provider should support:
Apple iOS devices Android OS devices
For iPhone and iPad users. For a wide variety of tablets
and smartphones.
Download Xero for iOS Download Xero for Android
Windows PCs Apple Macs
For desktop and laptop machines, For desktop and laptop
and some tablets, running machines running Apple’s
Microsoft’s operating systems. operating systems.
Log in at login.xero.com Log in at login.xero.com
Depending on the way your business is run, you may need support for other
platforms too, such as Linux or Java.
It’s important to check if the pricing plans offered by your software provider
charge per company or per user as this can have a significant impact on
costs. Xero for example charges a fixed price for any number of users in the
same organisation. Xero accounting partners further receive subscription
discounts as well as partner plans that begin from as low as USD 3 monthly.
See Xero partner program for accounting and bookkeeping practices
7
Security
Asking your clients to move from the desktop to the cloud may raise many questions. One of their main concerns will be the security of their financial data.
This is a natural concern, but the cloud is one of the most ‘saved point’ if necessary. In the cloud, this is all done for you smartphone. Xero will also alert you when detecting suspicious
secure ways to store information. That’s because no data exists – you don’t have to lift a finger. But with traditional accounting activity on your account, for example when your Xero account
locally – it’s all online, protected by powerful encryption. This software it’s you – or your IT team – that has to remember to is accessed from a remote location.
is a much safer method of storage than keeping data on a local make regular backups and store them securely.
hard drive. Think about the following scenarios: Disaster recovery planning
Xero performs real-time data replication between our Disaster recovery (DR) is a vital part of running a cloud
Stolen or lost laptop geographically diverse, protected facilities, to ensure your business. If the unforeseen happens, such as an earthquake,
With cloud accounting software, if your client were to lose their data is available and safely stored. This means that should an tornado or other disaster, whether natural or otherwise, the
laptop their accounting information would still be completely unlikely event occur, such as an entire hosting facility failure, business should be able to continue with minimal interruption
secure. The loss of the laptop would be inconvenient, nothing we can switch over quickly to a backup site to keep Xero and as servers in another location take over.
more. On the other hand, a lost laptop with traditional your business running. We transmit data securely, across
accounting software installed could never have its data be encrypted links. Control
recovered. Using cloud accounting software puts your clients in control.
Here are the features a good cloud accounting service provider They can decide who can view their data, and they control each
These are the basics of good cloud service delivery. If you find should offer: user’s level of access. The cloud really is the safest place for
yourself talking to a software provider who doesn’t have all your clients’ accounts data.
these systems in place, walk away. Data encryption
Your data should be encrypted so that if it should fall into the As a Xero customer you have the flexibility to invite unlimited
Natural disaster hands of hackers, they won’t be able to make any use of it. users into your account to collaborate on your data, and the
In the event of a natural disaster or an office fire, your clients Xero encrypts all data that goes between you and Xero using person that holds the subscription has control over who has
won’t lose any work time if they use cloud accounting software. industry-standard TLS (Transport Layer Security), protecting access and what they are able to do. Our customer support
Their data will be safely stored online, so they can access your personal and financial data. Your data is also encrypted at staff cannot access your information unless you invite them
their accounting information through the internet. But with rest when it is stored on our servers, and encrypted when we to help.
traditional accounting software, their data may be inaccessible transfer it between data centres for backup and replication.
for days or even weeks.
Multi-factor authentication
Data backup At the basic level, access to your accounting software should
Computers, like all devices, are susceptible to failure. Hard be safeguarded with a login and password. Xero goes a step
drives can stop working, operating systems can crash, software further and offers two-step authentication. This provides a
can have bugs, and users can make mistakes. It’s vitally second level of security for your Xero account by requiring a
important to have backups, so you can return to a previous unique code generated by a separate authenticator app on your
8
Integration with other business apps
You will want to be able to compare one cloud accounting provider
with another, which means you’ll need to know exactly what services
each one offers. Most of these providers will include that information
on their website, but if not they should be able to supply it in
document form for you.
But the big advantage of cloud services is the flexibility to ‘add-on’
additional features as you deem necessary. Most providers will have
deals with partner companies and some will also allow third-party
providers to create third-party applications or ‘apps.’
This works a bit like the app stores in smartphones, or plug-ins for
web browsers. It means you can get more out of your software. So
ask for a list of third-party suppliers, partners, and add-ons. In some
cases there may be hundreds to choose from.
Did you know?
Xero connects with more than 700 third-party apps depending on
your clients’ industry or business needs. Popular apps that our
customers use are payroll, e-commerce, online payment options etc.
View app marketplace
9
Reliability
Uptime
A broad range of features is of no use if the system keeps going offline or
crashing. The amount of time a cloud service stays running and accessible
is called its uptime. When evaluating accounting software, the uptime
percentage should be over 99.95% in the best cases: that’s less than an
hour of downtime in a year.
Achieving good uptime depends on various factors. These include having
staff with the right skills, providing investment for new servers and
infrastructure, and understanding the business need for reliability.
Xero holds a record of 99.97% uptime. We use multiple
redundancy technologies for our hardware, networks,
data centres and infrastructure. These ensure that if any
component fails, Xero will keep on running – with little
or no disruption to your service.
Demonstrate repuation in the industry
Have you spoken to your peers about the accounting software they use? If
you’re evaluating a specific accounting software, find out how many users
they have worldwide, in your locale, and find evidence of trust by peers in
your industry.
Xero, for example, has close to 1.6 million subscribers worldwide.
Over 100,000 accountants and bookkeepers worldwide list themselves as
partners of Xero, using Xero to provide services to their clients.
Learn more about Xero’s partner program here.Pricing Does the software provider charge a licensing fee for the whole company? Or a subscription fee for each user? Is there a minimum commitment? Are there limitations in the number of transactions? Is it time-bound? Are there any premium features that will cost more? Each provider will have a different pricing structure. Evaluate Find out what the software will cost your clients today, and if the cost may grow over time. While a low up-front initial cost may be appealing at first glance, if the costs rise exponentially as your business grows. Did you know? With Xero, what you see is what you get. Limited plans start from USD 20 monthly, but with a little upgrade at USD 30 per month your company may access Xero for an unlimited number of transactions and for an unlimited number of users. Start 30-day free trial
Support
Self-service Ongoing updates
When you or your clients encounter issues using accounting software, you’d likely Software updates can be developed and delivered faster and more easily in the
want to get answers instantaneously. When evaluating accounting software, keep cloud. This means you don’t need to worry about installing the latest version and
an eye out for the types of support avenues available for the user. you’ll get access to new features instantly. A good accounting software should
constantly innovate, delivering new features and performance improvements,
Xero, for example, maintains a large library of useful documentation in Xero without interrupting the service and disrupting users.
Central – a one-stop online resource for Xero feature explanations, how-to
articles, videos, and to chat with other users for quick answers
Conclusion — An engaged client is an asset
Personalised support When your clients take their accounting online, your practice reaps the benefits.
Your clients are more engaged, confident, and rely on you to provide real-time
When you’re not able to get answers on your own, what other support avenues advice into their business’ financial position. It’s a win-win combination.
are available to you? Is there a hotline to call? A support email address? Are
these avenues available to you round-the-clock and how soon can you expect We also know that accounting practices who make effective use of technology
a response? On top of 24/7 support, Xero provides all our accounting and spend half the number of hours on servicing the compliance needs for each small
bookkeeping partners with a dedicated Account Manager who is the point of business client, and grow their revenue nearly three times faster.
contact for all-things-Xero.
Contact us at partnerteam@xero.com to learn more about how Xero accounting
software can be the right choice for your clients in the new year.
Training & education
As a Xero partner, you also get access to Xero University, an online learning hub to
learn about Xero and obtain Xero Advisor certification so your clients know they
can trust you as their cloud accounting advisor.
100,000+ accountants and bookkeepers worldwide partner with Xero. Find out
who are the Xero certified peers in your country:
View Xero Advisor directory
Classroom training is also available in Singapore and Hong Kong and the
curriculum ranges from the basics of Xero to setting up your practice, day to day
in Xero, and using Xero report templates.
12Xero Partner Program Complimentary accounting software & practice tools Free Xero subscription, Xero HQ, and Practice Manager Ongoing support & consulting Dedicated Account Manager and access to partner consulting Marketing support Xero partner marketing fund, Xero advisor directory listing, and Xero Certified Advisor Badges Education & training Tailored content in Xero U, CPE credits, Xero Community & certifications Grow revenue Earn margins for clients you bring on-board with Xero Apply to become a Xero partner
Choosing accounting software: An easy checklist
No Characteristic Check
1 Does the software run on the cloud?
Online invoicing
Unlimited storage
Online payment
2 Features
Anytime, anywhere
Multiple users
Multiple devices
Data encryption
Multi-factor authentication
3 Security
Automatic backups
Disaster Recovery Planning (DRP)
Open API
4 Integration with core business apps
App certification program
Uptime
5 Reliability
Reputation (ratings & reviews)
Transparent billing plans, additional costs factored in
6 Pricing model
Ongoing updates
Online self-service
7 Support 24/7 email support
Dedicated Account Manager
14For a free 30-day and trial and more information, visit xero.com
You can also read
