This is a great question, but it’s also one that is quite easy to answer.
Xero is a fantastic accounting software package, and I personally use it for my companies.
But whilst Xero and other similar accounting systems make the process of managing your books a lot easier for a tradie, they are not a replacement for a bookkeeper.
You still need to take the time to reconcile your bank accounts and credit card statements, and you still need to know which codes to apply to each transaction.
Sure you can work these things out yourself, but it still doesn’t change the fact that using a bookkeeper will save you time and ensure your accounts are as accurate and correct as possible.
If you’re a tradesman who is dead against using a bookkeeper, then Xero is still going to make your life a hundred times easier compared to trying to run everything on spreadsheets.
But why not have the best of both worlds by combining the features of Xero with the benefits of having a bookkeeper?
If you are planning on going down this path make sure you find a Xero accredited bookkeeper. This way you’ll have someone not only with expertise in accounts, but also an expert on the system.
You can find a list of accredited bookkeepers by following this link to the Xero website.
PS. This post isn’t about promoting Xero. The same principles apply to all other accounting software packages such as MYOB, Reckon etc.