Xero to Hero
Has your business outgrown Xero? Find out what happens when you get past buzzwords like “beautiful”, “intuitive” and “visibility”. This helpful blog identifies the most common indicators your business has outgrown Xero’s capabilities.
Like many of us, the longer you do something for, the harder it becomes to change your ways. It’s human nature really. And This is often the case we see when it comes to changing software. For many businesses who start out using products for sole traders and small business, making the leap towards ERP can be daunting. However, it doesn’t need to be.
Sticking with a product like xero due to sentimental value, familiarity, or a lack of choice. After all, it has served you well over the years. Maybe you’ve been avoiding the tell-tale signs that things aren’t going as they should be. Perhaps you’re telling yourself that as long as your operation stays afloat, things will be ok.
But will they?
Will things magically get better if you continue to stick your head in the sand?
Drawing on over a decades worth of experience in the ERP sector as a leading MYOB Platinum Partner, we created this blog to help you easily identify common pain points your business might be feeling when you’ve outgrown off the shelf accounting software packages such as xero or quickbooks.
Most importantly, these pain points come from years of conversations we’ve had with businesses. Many of whom have successfully made the transition from being a small business with large aspirations, to a thriving enterprise thanks to MYOB Advanced and BusinessHub.
We hope this insight will help you work out if you’ve outgrown Xero, and assess your own future business needs and growth aspirations.
Xero is slowing down or timing out
This is the most common sign – reports start to slow down or time out. It happens because Xero was not built to accommodate large transaction volumes. As a result, the more your business and data grows, the less Xero supports your operations.
You need multiple company files
One of the main weaknesses of Xero is that it’s designed to only manage one business. Granted there are workarounds, they are not ideal and can be expensive. This often leads to inaccurate reporting across your entities.
Add-ons are adding up
Xero is not designed to work alone, so larger businesses will need multiple add-ons to meet their needs. The down side? Multiple add-ons are expensive and limited. This increases the total cost of ownership. Over time, it may be more expensive than investing in an ERP system.
Customisation is limited
As your business grows, your processes become more complex. And while multiple add-ons can take on the role of band-aid to fill in the gaps, they are can become expensive and slow your system down. As you add more products, complex supply chains, employees, locations and customers to your business your solution may start causing more costs, delays and errors than it’s worth.
A lack of local support
Xero supports multiple countries, offering varying levels of technical support. Having a locally based partner located in Australia like BusinessHub is important as we understand the local environment. We know how your system has been implemented and customised. And we can provide the tailored support you need to succeed.
No accurate real-time insights
Using Xero plus add-ons means your data could be sitting in separate databases that do not integrate in realtime. This means that you have to download multiple reports from different add-ons and manually pull them together. Not only is this time consuming, it increases the risk of errors and offers no real-time insights. In comparison to an ERP system, Xero fails to offer the same level of control, flexibility and precision that growing businesses need.
Xero doesn’t have sophisticated permission functionality nor the ability to set up automated workflows. This means you have no choice but to continue manually approving requests. This takes away the you could be spending on your business and increasing revenue.
Accounts or end of month reports take too long
Xero is designed for small businesses, which means that many growing businesses will have to use spreadsheets to fill in the gaps. You may have multiple staff spending time on manual and repetitive tasks, or joining data in spreadsheets from various add-ons and reports. Time that could be used on revenue raising activities.
You can’t control user access
Xero doesn’t offer the level of flexibility or user access levels like an ERP. This lack of safeguards leaves you open to data breaches and fraud. Add-ons also require logins too, so granting or revoking access means repeating the same across multiple apps, which increases the risk of errors.
Ready to step up?
As we have shown in this blog, most small businesses start off using off-the-shelf products to meet their basic accounting needs. But it doesn’t take long for successful, expanding businesses to outgrow the capabilities of those platforms.
When that happens, the frequently asked question is: what should I do next? Some will persist with Xero – using all sorts of cumbersome workarounds, like adding more and more plug-ins to extend functionality. Unfortunately, this approach can be messy, expensive and complex to say the least.
So what should you do next?
It might be time to take a closer look at an intuitive ERP solution like MYOB Advanced. It’s the perfect platform for successful businesses to use as a catalyst for growth aspirations. It delivers financials, customer relationship management, inventory and warehouse management, professional services automation and eCommerce capabilities in a single solution. Not to mention it works seamlessly with MYOB Advanced Payroll and Workforce Management.
MYOB Advanced allows businesses to interact with their customers in new ways, providing the necessary functional depth to support complex business models and processes. It contains the integration complexity associated with additional applications and provides unsurpassed insight across all functional capabilities through a unified data model.
In conclusion, while an off-the-shelf accounting software package like Xero may have initially fit your needs, investing in an integrated and functionally rich platform like MYOB Advanced will put your business on the fast track from local to legendary.
We have trust in the MYOB brand and as it turned out their Advanced solution really did have everything we needed.
The functionality of MYOB Advanced met our many needs including customer special pricing, advanced stock management, a customer portal as well as CRM.