Xero Accounting FAQ
Using Xero? Here's What You Still Need from an Accountant Answers to Common Xero Accounting Questions
Xero is one of the most popular cloud accounting tools used by small businesses across Australia. It’s smart, user-friendly and makes bookkeeping a whole lot easier — but there’s a big difference between using software and getting expert financial advice.
At Bottrell Accountants & Tax Agents, we’re Xero Certified Advisors working with clients in Newcastle, Maitland and Chatswood. Below, we answer the most frequently asked questions about Xero from real business owners.
Do I still need an accountant if I use Xero?
Yes — Xero simplifies data entry and reconciliations, but it doesn’t replace strategic financial advice, tax planning or compliance.
Xero helps with:
- Sending invoices
- Connecting bank accounts
- Reconciling payments
- Basic reports
An accountant helps with:
- Tax returns & ATO compliance
- Business structuring
- Budgeting & cash flow forecasting
- Strategic planning for growth
Using both together ensures your books are accurate and you make smart business decisions.
Is Xero accounting worth it?
Absolutely — for most businesses, Xero is a great investment.
Benefits include:
- Real-time visibility of your cash flow
- Integration with over 1,000 apps (including payment, POS, and inventory)
- Mobile app access
- Automated invoicing & reminders
- Secure cloud backups
Xero reduces admin and helps you stay on top of your business finances, especially when used with a Xero-certified accountant.
Do I need a bookkeeper if I use Xero?
Yes — Xero is a tool, but someone still needs to:
- Enter and review data
- Chase unpaid invoices
- Reconcile accounts
- Manage payroll
A bookkeeper ensures your day-to-day records are accurate. Without one, even the best software can be misused — leading to incorrect tax lodgements or cash flow confusion.
At Bottrell Accountants, we offer in-house bookkeeping fully integrated with Xero, including payroll, accounts payable and accounts receivable.
Is Xero accountant free?
No — Xero is a software subscription. While some features are DIY-friendly, working with a qualified accountant is a separate cost.
However, many accounting firms (including Bottrell) offer:
- Xero subscriptions bundled with monthly accounting
- Training and support with setup and ongoing use
- Xero health checks & end-of-year reviews
We make sure your Xero is set up right — and your numbers tell the full story.
What are the weaknesses of Xero?
While Xero is powerful, it’s not perfect.
Limitations include:
- Limited inventory and job costing (need integrations)
- Payroll has restrictions in certain industries
- Customisation is limited for some reports
- Not designed for complex, high-volume businesses
These can be overcome with proper setup and connected apps — something we help our clients with.
What does Xero do for accountants?
Xero allows accountants to:
- Access real-time client data securely
- Automate reports and BAS generation
- Collaborate with business owners from anywhere
- Identify tax opportunities and compliance risks quickly
It also streamlines communication — we can make recommendations faster when your books are always up to date.
How do I get the best out of Xero?
Tips to get the most from Xero:
- Use bank feeds and reconcile weekly
- Attach receipts and bills to every transaction
- Set up repeating invoices and reminders
- Connect Xero with your POS or CRM
- Work with a Xero Certified Advisor
We provide full Xero training and reviews to ensure your file is clean and working for you.
Can I learn Xero by myself?
Yes, but there’s a learning curve.
Many business owners find it helpful to:
- Complete Xero’s online courses
- Watch tutorials via Xero Central
- Book a 1:1 session with a Xero specialist (we offer this)
Self-learning is fine — but having a pro set up your chart of accounts, tax settings and payroll ensures everything is ATO-compliant.
What problems does Xero fix vs traditional software?
- No more desktop backups — everything is cloud-based
- No emailing files to your accountant — they can access live
- No manual bank reconciliation — use live bank feeds
- No outdated reports — you have real-time data
It makes managing finances faster, easier and more accurate.
Our Office Locations
Newcastle
Address: 45 Hunter Street, Newcastle NSW 2300
Phone: 1300 788 491
Email: newcastle@bottrellaccounting.com.au
Visit our Newcastle Office Page →
Maitland
Address: 93 Lawes Street, East Maitland NSW 2323
Phone: 1300 788 491
Email: maitland@bottrellaccounting.com.au
Visit our Maitland Office Page →
Chatswood (By Appointment)
Address: Tower A, Level 20, 821 Pacific Highway, Chatswood NSW 2067
Phone: 1300 788 491
Email: chatswood@bottrellaccounting.com.au
Book a Xero Discovery Session
Let us review your Xero setup or get you started the right way.
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