There is a huge difference between a Xero Accountant Advisor and a Xero Bookkeeping Advisor company. Most of the business owners I speak with don’t realize there is a difference, and/or understand what a Xero Advisor can do for them as a whole. So let’s break this down.
Xero Advisors In General
Xero is a cloud based accounting tool that promotes real time accounting and collaboration with an outside advisor. It also syncs with hundreds of 3rd party software applications, allowing tools you may already use to sync meaningful, timely details to your accounting system, and also prompts discussions around better and faster ways to do things using tools you may have never heard of before.
By default, a Xero Advisor is going to help you get the best out of Xero, will be able to work with you virtually, enable you to work mobily, and provide various levels of service, advice and value based on your needs.
The level of service, advice and value is the big variable here, and one way to overarchingly categorize Xero Advisors and help you pick the best fit is based off the Xero Advisor “Type”.
Xero ‘Accountant’ vs Xero ‘Bookkeeping’ Firms
I now work for a full service Xero ‘Accounting’ firm, HPC, but also formerly worked at a Xero ‘Bookkeeping’ firm that was later acquired by HPC.
From my personal experience, I can tell you there is a huge difference between the less than 10 person without a CPA bookkeeping firm vs. the close to 30 person full service CPA advisory firm. To list just a couple:
- Level of Advice - With a bookkeeping firm, tax advisors and virtual CFO’s were not available to give advice, and instead we worked with outside parties who may have not of understood Xero or liked to work virtually like us and our customers. They also were increasingly expensive to contract on a per-issue basis.
- Getting New Customers Implemented - With a bookkeeping firm, one or two people helped to implement solutions. With an accounting firm, a combined 4-5 person implementation team streamlines processes, like onboarding and are available to provide recommendations on a deeper list of solutions and best practices, given joint experience.
Benefits of Xero ‘Accountant’ Firm
More of a one-stop shop approach to your accounting, compliance, and growing your business.
- Tax advisors on staff working with Xero and an in-house bookkeeping/accounting staff
- Removes you from the middle of bookkeeping to tax questions.
- Promotes real time and accurate business advice and tax planning.
- Tax advisors are available year around to support and seamlessly keep you in compliance, not sitting in an office waiting to see you once a year to file taxes.
- Focus on growth and compliance advice, not just bookkeeping
- How to stay in compliance, change ownership or tax elections, and plan accordingly.
- What it will take to expand into a new state with an employee, store and/or warehouse.
- Forecasting and advice for future business decisions or fund raising efforts, not just historical bookkeeping or reporting.
- Everything included for an all encompassing fee, but still typically a fraction of the cost, more valuable, and less time consuming than having multiple parties involved or hiring in house staff.
If you want to have all the technology, full-service outsourced accounting and support, part time dedicated virtual CFO, tax advisory and compliance, and a long term partner to help grow your business all from one provider, than you want to seek out a Xero Accountant.
A great option if you want a complete solution like this, is HPC. You can get in touch with the link below if you’d like to review how we can help your business.
Benefits of a Xero ‘Bookkeeper’ Firm
A provider to help with your back office bookkeeping, reporting, and accounting needs.
- The right tools and processes to keep your back office in order
- Advice on how to setup your Xero ledger and get the best out of the software.
- Advice on 3rd party add-ons and how you can use them to save time, reduce errors, and/or segregate duties as you grow.
- The means and process to help you get it all setup, integrated, and provide training and support.
- Numbers for when you or outside parties need them
- Help with weekly, monthly, quarterly, or annual reconciliation and reporting.
- Facilitating numbers and adjustments for year end and outside tax provider.
- Mobile access to your numbers and business to make decisions on the go.
- Flexible monthly, fixed fee, or hourly charges
If you want advice on Xero and it’s add-ons, but are not looking to switch your CPA or tax accountant any time soon, then a bookkeeping firm is probably best for you.
Also, if you aren’t sure about Xero or are looking for some basic help, a bookkeeping company is more prone to have one-off services to help you evaluate options. A full service accounting partner will always be there later when you grow or know for sure it is a good fit.
How do you find the right Xero Advisor?
At the end of the day, talking to a few Xero Advisors will help and you’ll probably learn a few things during the process. However, we all know you have better things to do than to talk to accounting firms all day!
Xero has a great new directory that allows business owners to filter their search. See the screenshot and the link with simple instructions below.
Go to the Xero Advisor Directory using this link.
See HPC's Platinum Xero Advisor Page here.
Filter on Advisor type to find an Accountant or a Bookkeeper.
Note - Industry and size are helpful filters too, but location, at least for the US, may not be so relevant given most Xero advisors can work with you virtually.
Xero is a good fit for most small businesses, but finding the right Advisor and level of help could be the difference between saving hours a month with automation or just adding another list of to-do’s and monthly subscription to your list.