1. Xero is slowing down or timing out
An obvious sign you have outgrown your Xero accounting package is when reports start to slow down or time out. Xero is a standard accounting package that is not built to accomodate large transaction volumes. Consequently, the more your business and therefore data grows, the less Xero supports your operations to a satisfactory level.
2. Add-ons are adding up
Xero can be a great small business accounting software, but it is not designed to work alone. It is common for larger businesses using Xero to need various add-ons to satisfy departmental, operational or financial reporting requirements. Xero plus multiple add-ons can be costly when you add up all licence fees put together. The total cost of ownership may be more than investing in one integrated ERP system that meets all your needs.
3. You can’t access accurate business insights in real-time
Using Xero plus add-ons means that your data could be sitting in separate databases which don’t integrate in real-time. This is cumbersome when you need to download multiple reports from different add-ons and manually pull them together. A solution which is time consuming, increases the risk of error and does not produce real-time insights. In comparison to an ERP solution, Xero fails to offer the same level of control, flexibility and precision that growing businesses need.
4. You can’t access local, specialist support
Xero supports multiple countries and add-ons, offering varying levels of technical support. Having a locally based partner is important as they understand the local environment, how your system has been customised and can provide tailored support with specialised expertise.
5. It takes days or weeks to produce accounts or end of month reports
As Xero is a standard accounting package designed for small businesses it is common for businesses to use spreadsheets to fil in the capability gaps that Xero lacks. You may have multiple staff spending significant time on manual and repetitive reporting tasks, or joining data in spreadsheets from various add-ons. Employee’s time could be more productivity and beneficially spent on valuable, revenue growing tasks.
6. Customisation is limited
As your business grows in size and complexity, your business model and processes also become more complex. Add-ons can act as a band-aid solution for any gaps you may be experiencing in your system however, Xero has limited customisability. Therefore, as you add more products, complex supply chains, more employees, locations and customers to your business your solution can be quite the opposite causing more delays and errors than it’s worth.
7. You can’t get technical support when you need it
Xero only offers online support which can hinder operations if you need support for critical day to day operations such as running payroll on time. When you invest in an ERP solution with Momentum, we become your go to for critical help and technical support.
8. You can’t control user access
Xero doesn’t offer the same level of flexibility or role-based user access levels when compared to an ERP. Your business could be lacking safeguards against fraud and be unable to provide audit trails in the event of data breaches. Apps require additional logins so granting or revoking access means repeating the same across multiple apps, which increased the risk of errors.
9. You’re still manually approving
Xero doesn’t have sophisticated permission functionality and the ability to set up automated workflows. This means you could be manually approving requests and have no way of adequately controlling workflow approvals and levels of authority.
10. You need multiple company files
Xero is designed to only manage one business. While there are workarounds, they’re far from ideal and create reports that aren’t accurate or helpful. This is even tricker if there are different ownership percentages across the various entities.
If your business is experiencing any of the above then it might be time to consider an all-in-one integrated ERP solution. ERP software is designed for medium to large businesses who have outgrown their off-the-shelf accounting package. As a scalable solution that grows with your business, it can be tailored to your unique growing business needs, allowing you to get a completed end-to-end view of all business processes.
Outgrowing Xero and looking for a solution that supports your growing business needs? Get in contact with Momentum today to learn more about MYOB ERP solutions: Contact us