The Xero accounting system has been a game-changer for modern businesses. But, as the saying goes, a tool is only as good as how you use it and Xero’s true potential lies in using its features correctly. We are now a quarter of the way into the 21st century (if you can believe it) and we thought it was about time we reexplore how you can optimise your Xero account to improve efficiency, accuracy, and growth in your business.
Xero’s accounting system has become a vital tool for businesses of all sizes, offering a user-friendly platform to streamline financial processes. By staying updated, embracing automation, customising reports, and strengthening your account controls, you can take your financial management to amazing new heights.
From new features to best practices, as expert Xero accountants ourselves, here’s how you can ensure your Xero experience is top-notch.
Keep Up with New Features
Technology evolves rapidly, and so does Xero. Each year, the platform updates to enhance usability and functionality. In 2025, make sure you stay informed about the latest features because these will include enhanced automation tools, improved reporting dashboards, and new third-party app connections, which will all elevate your bookkeeping and accounting experience.
Implementing new features promptly will save time and increase the accuracy of your financial data. Additionally, take advantage of any training sessions or webinars Xero offers to help you get to grips with how to use the system effectively.
To stay even more updated you can subscribe to Xero’s newsletter or follow their blog to catch announcements as they happen. Explore the platform’s community forums to share tips with other users and learn creative ways to make the most of the updates. This will give your business that competitive edge.
Leverage Automation
One of the standout aspects of the Xero accounting system is its automation capabilities. In 2025, focusing on automation can transform the way you manage repetitive tasks. For instance, you can significantly reduce manual effort – by setting up rules for simple tasks like bank reconciliation.
Similarly, automating invoicing and payment reminders ensures you get paid faster and maintain a healthy cash flow. For businesses managing payroll, Xero’s payroll automation tool can streamline salary payments in compliance with tax regulations.
Invest a bit of time in setting up these automations and free yourself to focus on strategic aspects of your business. And don’t overlook Xero’s marketplace for the opportunity to integrate with other software solutions, these can be an easy way to further enhance your efficiency.
Customise Your Reporting
Every business has unique financial goals and needs. Customise your reports in the Xero accounting system and track the metrics that matter most.
For example, you can tailor profit and loss reports to focus on specific projects, departments, or time periods.
In 2025, harnessing these insights can help you make informed decisions to improve your profit margins and plan for the future. Use Xero’s budget manager tool to create and compare budgets directly within the platform. This feature provides a clear view of how your business is performing against its financial targets.
Share these customised reports with your accountant or financial advisor to gain expert input on improving your financial strategies. Regularly reviewing and adapting these reports ensures that in this ever-changing economic environment your business stays more agile than an Olympic gymnast.
Tighten Up Controls
As your business grows, so does the need for strong financial controls. The Xero accounting system offers a range of features that can help prevent errors and reduce the risk of fraud. With cyberattacks consistently on the rise there really is no excuse to not be making full use of these safeguards now it’s 2025.
For example, set user permissions to restrict access to sensitive data or limit specific actions within the system. This is particularly useful for businesses with larger teams. Additionally, activate two-step authentication to add an extra layer of security to your account.
Auditing your financial processes is another important step. Proactively monitoring your accounts not only ensures compliance but also provides peace of mind. You can use Xero’s audit trail function to review who has made changes to transactions or accessed critical financial data.
Of course the best way to get the most out of your Xero accounting is leaving it to the professionals, like us. At Raedan we are the UK’s leading accountants for creatives who specialise in helping businesses on their road to success.
If you are looking for expert bookkeeping or accounting services powered by Xero then get in touch now.
