Businesses often experience significant ups and downs, and one way to ensure consistent results is dependent on how these businesses choose to store their data. The act of documenting and storing data is described as bookkeeping. Several bookkeeping methods have been developed to minimize the downs while maximizing the ups experienced by businesses.
The developments in various methods for bookkeeping can be summarized in two,Guest Posting traditional and modern bookkeeping. Traditional bookkeeping involves manually documenting data obtained from a business in hardcopy (book) by a chartered accountant or bookkeeper. In contrast, modern bookkeeping resulted from the introduction of technology and electronic devices where electronic devices are used to store data in an electronic ledger.
However, some modern bookkeeping methods are highly rated above others for specific reasons. One of the modern methods of bookkeeping that has received many applauds and patronage from businesses is online bookkeeping. Online bookkeeping involves using various online bookkeeping applications and platforms to store and process data obtained from a business. Amongst these online bookkeeping platforms is Xero bookkeeping. This article will highlight what Xero bookkeeping is and how it benefits businesses.
What is Xero Bookkeeping?
This is a type of electronic online bookkeeping services where data is stored online on a web server instead of on a computer’s hard drive. The origin of this bookkeeping system can be traced to New Zealand and it was grist adopted by businesses around Australia. Today, it is among the most used bookkeeping systems around the world.
Benefits of Xero Bookkeeping?
Specific reasons are vital to the reception that Xero bookkeeping has received globally. These reasons are the benefits of this method, and they are:
Transparency: The problem with traditional Bookkeeping methods is that data is open to only business members; clients are granted access on special occasions. With Xero bookkeeping, there is much transparency as it being web-based means that both members and clients of a business can have access to the data anytime.
Insurance: When data is documented on the web, it is stored and backed up in a server. Thus, if any accidents occur, that can lead to data loss. With Xero Bookkeeping, the data can be easily retrieved when misplaced. Hence, technically data is rarely misplaced or lost.
Security: In the early stages of Xero bookkeeping, traditional has the edge because it offered more security than Xero bookkeeping. In the early stages of Xero bookkeeping, hackers could easily access business owners’ data. However, recent developments have reinforced the security it offers. Hence, if business data is stored using Xero bookkeeping, the stored data is highly-secured.
Flexibility: The issue with traditional bookkeeping is that once data is entered, it can rarely be amended, but this is not the case with Xero bookkeeping because storing data allows for data to be easily amended, and it also minimizes the chances of entering incorrect data. This is because it allows for interlinking between business accounts; thus, business data is obtained directly from its source.
It has been established that Xero Bookkeeping is one of the ideal methods of bookkeeping for various reasons. This article has explained what the Xero system of bookkeeping is and what makes it ideal for modern businesses. We have also highlighted some of the benefits you will enjoy with this accounting system.