Small and Medium sized businesses (SMEs) who use cloud-based accounting packages such as Xero sit on a wealth of information. The limiting factor for SMEs to access their analytic data is the lack of adequate skills within the finance department. Xero provides a wide range of data analytics features from which SMEs can measure the performance of their business and take necessary actions to improve their decision-making. Xero is also compatible with Microsoft BI which is a plug-in to the system for enhanced data analysis.
One of the features of Xero is its smart list, which allows the extraction of lists of contacts based on buying behavior, invoiced amounts, and even location to create targeted marketing campaigns. Once VAT goes live in the UAE, companies will be collecting information on product price, VAT rates on each item, demand for each product, invoices paid to suppliers, and quarterly payments made to the government to name a few. This data can then be exported and analyzed to get insightful information that can help businesses make better decisions. Therefore implementing software such as Xero not only has the benefits of using a cloud-based accounting system to automate processes but also enables quick and easy data analysis.
Xero makes the process of VAT return filing simpler by processing the data captured in the system to automatically create VAT returns on demand. This occurs by enabling the automation of capturing output and input VAT by configuring the tax rates by product upon creation of invoice or processing expenses. Xero uses one VAT account and only includes transactions from this account on the VAT Return.
Other analytical features of Xero include its main dashboard which provides a bird's eye view of the business through which you can stay on top of key metrics such as cash flow, inventory, expenses, bank accounts, gross profit, net profit, and debt to equity. It displays the results by way of design-friendly charts and graphs.
The dashboard also enables the convenient function to drill down the data directly from the dashboard without having to click away to another screen. It can also enable the setting of goals to track performance.
Xero and Microsoft BI
Xero recognizes the key to moving small businesses forward is ensuring that they have the right tools for analysis. That is what Xero aims at with their newest integration with Microsoft Power BI, the world’s most loved data visualization BI tool.
Microsoft Power BI is a business analytic tool, which helps to analyze data and share insights. It brings together all the information needed to get a complete view of the organization. Not only does it save time but also provides business advice and gives users an easy way to access and analyze information from Xero and other sources to make smart and informed business decisions.
Microsoft Power BI can also enable a dive deeper into the Xero data without requiring any IT support. With the click of a button, data in Xero can be paired with data from other sources – such as CRM, marketing, and support systems – to surface new insights. These can be saved as graphs and images to provide a visual snapshot of how the business is tracking.
We at Alpha Pro Partners are Certified Xero Advisors and we would be more than happy to assist you with your queries you may have.