Smart Accounting with XERO – Solution for International SMEs

In a business world that rewards high-velocity corporate cultures, the ability to quickly react to industry changes has become increasingly relevant for SMEs.

Being able to have a full overview on service/product profitability allows managers to take immediate decisions and assess which service/product lines are worth strengthening and which ones should be excluded from the portfolio of offerings. This is only possible thanks to real life insights into company’s finances.

Business owners should be able to have 24/7 continuous access to key performance indicators and financial information about the health of the company. The lack of essential timely financial information may force managers to make day to-day decisions in a blindly fashion, driving the company into financial instabilities and troubles.

Particularly significant for SMEs is an accurate cash flow management. Even extremely successful business models might encounter operational difficulties in case of cash shortage and funds mismanagement. Cash-out flows are often easy to anticipate (e.g. rental, employees’ salary, etc.) while forecasting cash collection from clients might be rather challenging. Optimized cash collection schedule and liquidity management is therefore crucial for survival.

Data management is also a fundamental activity for SMEs. Customer relationship management databases, inventory stock management systems and timesheet tracking are just some examples of the substantial amount of data that businesses need to successfully manage. Traditionally, data would be created, processed and stored through either paper-based or excel based processes, generally on different systems that are often not able to communicate with each other.

SMEs should aim at holding all information up to date, processing them on systems that are well integrated with each other and accessible by everyone at anytime.

Real-time data with automated “Bank Feeds”, online invoicing and expense scanning technology.

XERO is a global small business platform which offers cloud-based accounting software including tools for managing invoicing, bank reconciliation, inventory, purchasing, expenses, bookkeeping and more. XERO has developed “Bank Feed” technology with over 100 banks around the world (HSBC, DBS in Hong Kong and OCBC, HSBC, UOB, DBS in Singapore just to mention a few examples), allowing transactions from your bank accounts to directly flow into XERO, reducing the time taken to complete a bank reconciliation.

With the development of a scanning technology, XERO is also committed to enhance company’s internal and external process efficacy.

Thanks to this technology, both the interaction with clients as well as the management of the organization’s internal staff may be conducted in a much easier and effective way.

SMEs and their clients are indeed able to exchange documents in a secure and rapid way thanks to a safe shared cloud-based environment.

Scanning technology also allows an expense claim function where employees can simply take pictures of their own receipts and submit them for approval, saving them the trouble to keep the paper copy. XERO scanning technology will auto-populate their expense claim for easy submission and reimbursements.

Concerning cash management optimization, XERO offers easy and helpful solutions to SMEs.

First of all, clients receiving invoices from XERO users will be able to settle outstanding invoices with a simple click. Once the client receives the message through XERO email, she/he will be able to process the invoice payment by being redirected from the email link to the PayPal or Stripe platform. With online invoicing, users will also be given the possibility to reduce the period of cash collection cycle thanks to automatic invoice reminders sent out to alert slow paying debtors.

Finally, over +700 third party applications (inventory, time tracking, payroll and expenses processing, etc.) can be integrated to Xero’s ecosystem, allowing seamless business operations and the creation of a corporate ecosystem that can communicate across departments and make data easily accessible by all staff.

FIDINAM is a proud recognized SILVER PARTNER of the accounting platform XERO and has access to a range of add-on applications and additional tools currently used by the company to better manage the Group’s and the clients’ accounting needs.

Patrick Heimann, Senior Business Consultant

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