5 Basic Functionalities of Xero Accounting Software


Every business organisation needs to track different financial activities and create various financial reports. Accounting software like Xero automates financial tasks, thereby reducing accounting costs. Hence, management can make better business decisions. In this article, you will learn the basic functionalities of Xero accounting software. 

Easy Invoicing 

Invoicing is a critical business activity as it enables businesses to get paid for the services they deliver. It is related to billing for the services provided and attached to the image of your organisation. Xero accounting software offers several ready-to-use beautiful invoice templates that can be customised as per your needs. 

You can incorporate a customised branding theme, upload your logo, and include your payment terms and conditions. All this can be done with few clicks. The software also sends automated invoice reminders. It gives you complete control over the frequency of invoice reminders. The invoice tracking feature allows you to see whether the recipient has viewed your invoice or has paid. 

The accounting software allows you to create invoices quickly by reducing repetitive data entries. You can replicate previous invoices or use preset inventory items. 

Pay Bills 

Paying bills is a significant financial activity. Approving invoices and clearing payments is a part of the simple workflow. The accounting software allows you to schedule payment of multiple accounts. The dashboard gives you a complete view of the purchase order and related payments. It also allows you to understand and manage the cash flow more efficiently.

By displaying the upcoming bills, your company can make timely payments to avoid late fees and build and maintain a good relationship with your suppliers. It also enables you to keep all bills and payment receipts at a centralised location. 

Seamless Integration

No accounting software is complete in itself. It is not always possible for the software developer to add every piece of functionality in the accounting software. This is where 3rd party app integration comes into the picture. The Xero software for accounting supports more than 800 3rd party apps that take its functionality to the next level.  


Inventory management and accounting are two crucial elements of a business. Inventory management is related to keeping a healthy warehouse and tracking all shipments and orders. 

Accounting is associated with the current financial standing of the company. Xero gives you a holistic view of the bestselling products and the profits you are making. It allows you to decide which products to concentrate on and what raw materials to purchase. 

The inventory management module can be integrated with accounting software. It helps you keep a tab on daily stock levels and make the right purchase decisions. 

Create Purchase Orders 

The purchase order is an essential document in business. Businesses need to streamline their order process, so adequate inventory levels are maintained at all times. The integration of purchase order functionality in the software allows businesses to create and email digital purchase orders directly to the suppliers.

The software offers ready-to-use customisable templates to create a beautiful purchase order. The purchase order design can be customised to reflect your brand and also maintain a professional look. You can choose which information to display and how to show it.

To sum up, these are some of the basic functionalities offered by the Xero accounting software.

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