Xero, a dynamic player in cloud-based accounting software, has rapidly grown its customer base, particularly among small and medium-sized businesses. It stands out for its flexibility and user-friendly interface, making financial management accessible and efficient. In this article, we explore Xero's suitability for multi-currency transactions, a critical aspect for Canadian businesses engaged in global trade.
What can Xero do?
Xero supports over 160 currencies, offering instant conversions and current exchange rates for seamless international transactions. Users can handle invoices, payments, and purchase orders in various currencies. The platform also facilitates setting up foreign exchange accounts, helping businesses track and manage currency fluctuations' impact on cash flow and profits. Additionally, Xero offers reporting tools that allow for financial performance analysis in both local and foreign currencies. This feature aids in simplifying multi-currency accounting and supports the management of global business operations.
What is missing?
Xero's multi-currency capabilities, available exclusively on the Premium plan at $67 CAD per month, offer significant functionalities but come with certain limitations. Firstly, to leverage the multi-currency features, users must also be on a business edition pricing plan that includes foreign currency options. However, the exchange rates, sourced from XE.com, update hourly but are finalized as the daily rate at the end of the day. This timing is dependent on the time zone set in the organization's financial settings, potentially causing discrepancies for global businesses operating across different time zones.
From a usability perspective, some users find Xero's interface outdated and not as intuitive as desired. Additionally, if a user decides to downgrade their subscription and remove the multi-currency feature, they face the limitation of not having access to important basic features. Another notable drawback is the inability to use tracked inventory for regular buying and selling in different currencies, which is a critical component for businesses engaged in international trade. This limitation underscores a missed opportunity in fully utilizing multi-currency functionalities. Additionally, item prices in foreign currency transactions are not automatically converted in Xero, requiring manual calculation, which can be a time-consuming and error-prone process.
Furthermore, Xero's platform has limited customer support and lacks comprehensive Knowledge Base articles specifically for its multi-currency features, posing a challenge for users seeking guidance on navigating these complex functionalities.
How can Finofo solve this?
Finofo stands out with its intuitive design, ensuring easy setup and management of multi-currency accounts. Its automated system simplifies currency transfers and quick invoice clearing, drastically reducing manual labor. With Finofo, experience seamless, automated multi-currency transactions, making financial management efficient and hassle-free.
Open your Finofo account today!