Online accounting software company Xero added a long-awaited simple inventory module and upgraded practice reports in a major upgrade released last night.
The multi-feature launch also completed online quotes, a feature that was released in a basic form in January. A new feature, side-by-side files, makes it easier to add receipts and bills by displaying them on screen next to transaction fields. The release is available immediately to all Xero users as part of their existing subscriptions.
“The End of the Beginning”
While desktop accounting programs may have greater depth in some features, Xero can finally say it has covered the basics. This includes quotes, purchase orders, inventory, invoicing, reconciliation, bills and expenses, payroll and compliance.
The advantage of online software is better use of live bank feeds, automatic bank reconciliation and built-in methods of communicating with bookkeepers and accountants, suppliers and customers. This is the evolution of accounting software from system of record to a source of real-time information for making strategic decisions.
“Today we’ve not only matched most of the features of traditional desktop software, but taken it beyond in terms of ease-of-use, mobility, value and performance,” Rod Drury, Xero CEO, said in a press release.
Drury has frequently talked about reaching basic parity with desktop software as “the end of the beginning”. The phrase has appeared several times in Xerocon keynotes and is used internally to describe a pivotal moment in the business.
The next stage will reveal Xero’s ambitious intentions in three areas; connected services, business platform and big data for small business. Xero has given glimpses of its plans with a demonstration of an insurance company calculating premiums for Xero users who have shared online access to their files, and an office supplies chain in New Zealand sending invoices directly to a user’s Xero account.
Below is an overview of the updates.
Side-by-Side Files
Xero has had the ability to upload and store receipts and bills through its smartphone apps since December 2013. Images saved to Xero Files are recognised by tax agencies and make it much easier to centralise and track all the expenses for a business.
Users can attach an image of a receipt to a new expense entry in Xero. Previously, entering the details required swapping back and forth between an image of the receipt and the form for the expense.
The side-by-side files feature shows the receipt alongside the expense form which will reduce the time it takes to add new expenses and bills.
Side-by-side files is a not feature that people will search for but one that will improve efficiency, says Tim Howell, Xero’s global product marketing manager. “We like it for a couple of reasons. It puts some discipline around record keeping. It also opens up opportunities for advisors who want to offer records entry.”
Xero has made a video showing how the feature works.
Online Quotes
Xero users familiar with online invoices will know what to expect with online quotes. The user emails a link to the online quote to a customer who then views the quote through the browser on their computer, tablet or smartphone.
The customer can comment (read: negotiate) by clicking on the Comment button at the top of the screen. The discussion is saved in Xero in the comments section below the quote itself.
“Someone else in the business can see queries against a particular quote, whether the customer wants to clarify a particular point, change the item or negotiate a better price,” Howell says.
The customer can also accept or decline the quote, actions which automatically update the status of the quote in Xero.
Quotes are customisable in the same manner as invoices through the use of templates. Quotes can be renamed (as estimates, for example) by updating the template.
You can also add plans or diagrams to an online quote. You control which files are made available with the online quote by selecting the option to “include within quote” after you’ve added the file.
“We are optimistic that the ability to quote online will allow customers to streamline their sales process even more and hopefully get jobs under way quicker,” Howell says, and help improve cash flow.
Xero says internal reporting shows the average number of debtor days for its users dropping from 54 days to 24 days though the online invoices feature.
Xero has released a video showing how online quotes works.
Practice Reports
The reports module in Xero has had a major upgrade to make it much easier to customise reports. Reporting templates can edit headers and footers, drag and drop columns and add sections.
The reports can be further customised for individual clients.
“The customisation is pretty powerful,” Howell says. “Those features are relatively common for online office products such as Google Apps or Microsoft Office 365 but seeing that embedded in an accounting solution opens up new opportunities.”
The new reports module is only available to New Zealand users. Australian users can expect to see the upgrade “hopefully by the new financial year” in June, Howell says. The US and UK will follow the Australian release later this year but there is no timeframe.
Read on for more on the practice reports.
Xero has made a video showing how the new practice reports work.
Simple Inventory
Xero already had the ability to track items but this has been expanded to add buy and sell prices and a basic inventory management. Users can add items to an online quote or invoice and track average cost of sale.
Xero users with more advanced inventory requirements can use add-on programs such as Dear or Unleashed.
Read on for more details and screenshots of the new inventory module.
Bank Feeds
Xero has added another 1,692 bank feeds for a total of 7,000 bank feeds with over 5,000 financial institutions globally.