What is Xero ERP software and how it works with Ramp

Managing a business without the right tools often means juggling countless spreadsheets, slogging through manual tasks, and missing growth opportunities. Xero can help you here: It’s a cloud-based accounting solution built to simplify financial management for small businesses.

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When paired with Ramp, Xero’s features and functionality expand even further, helping you streamline expense management and automate tedious processes like invoice management.

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This post explores what Xero is, what it does, and how its integration with Ramp can redefine your financial operations.

What is Xero, and is it an ERP?

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While it’s technically not an ERP, Xero’s ERP-like features support a broad range of business needs, with a strong focus on simplifying essential accounting tasks.

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Xero’s purpose is clear: to help businesses maintain accurate financial records while reducing time-consuming manual work. By centralizing financial data in a secure cloud environment, Xero ensures small business owners and finance teams can access real-time data and make informed decisions wherever they work.

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This accessibility helps businesses stay agile, adapt to challenges, and focus on growth instead of getting bogged down by administrative details.

How does Xero accounting software work?

Improving your finance operations often requires a system that works seamlessly in the background, with minimal intervention. Xero achieves this by automating core business accounting tasks, saving time and improving accuracy.

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Xero works by connecting directly to your business's bank accounts through secure, cloud-based bank feeds. These connections allow Xero to automatically import and organize transactions, ensuring your books stay up to date without constant oversight. From there, Xero applies smart automation to key accounting workflows:

• Bank reconciliation: Xero matches bank transactions to payments and invoices in real time, using past data to suggest matches. This minimizes errors and keeps your accounts accurate with just a few clicks.
• Invoicing and payments: Businesses can send professional invoices, automate payment reminders, and track payments from any device, helping you simplify accounts receivable and optimize cash flow
• Expense data capture: With integrations like Hubdoc, Xero pulls bills and expense receipts directly into the platform, eliminating tedious data entry and giving you a comprehensive view of your financial situation

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With these automation features, Xero not only saves time, but also reduces the stress and complexity often associated with accounting. By centralizing financial workflows and making them accessible anytime, anywhere, Xero turns accounting into a more strategic function.

Features of Xero accounting software

Xero’s extensive feature set makes it a valuable tool for small businesses looking to streamline their accounting processes. Some of its key features include:

• Online invoicing: Manage invoices effortlessly by sending, tracking, and automating reminders for faster payment cycles
• Multi-currency support: Simplify international business by managing transactions in over 160 currencies
• Inventory management: Keep stock levels updated and integrate inventory details into your invoicing and ordering processes
• Customizable reporting: Create tailored financial reports for deeper insight into business performance
• Analytics and dashboards: Monitor cash flow, project future trends, and track key financial metrics in real time

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On top of Xero’s core features, you can extend its functionality by integrating with other third-party apps:

• Payroll integration with Gusto: Streamlines payroll and tax compliance by automatically calculating wages and deductions
• Sales tax automation: Handle sales tax calculations and reporting effortlessly by integrating with Avalara
• Expense management: Integrate with tools like Ramp to capture receipts and bills, streamlining expense reporting and reimbursements

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These features and add-ons tackle common pain points, such as managing cash flow, reducing manual errors, and staying on top of financial tasks. For example, Xero’s invoice automation tools not only ensure timely payments, but also free up valuable time that you and your team can use to focus on more strategic tasks like vendor negotiations.

Who uses Xero?

Xero is tailored for small businesses, from startups to growing companies, that need a reliable, easy-to-use solution for managing their finances. Its scalability and simplicity make it a great choice for businesses that prioritize automation and real-time access to financial information without the complexity (or higher pricing) of a full-on ERP system.

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Industries that commonly use Xero include:

• Construction and trades
• Real estate
• Retail and ecommerce
• Professional services
• Hospitality
• Nonprofits
• Marketing and creative agencies

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Xero’s adoption across industries highlights its ability to solve diverse accounting challenges. By providing the tools you need to manage your finances effectively, Xero helps you spend less time on admin and more time on building optimized systems.

Xero integrations: Why they matter

Xero is a robust accounting system on its own. But third-party integrations help extend its functionality and cater to unique business needs, offering flexibility without overcomplicating its core purpose. By connecting to tools like Ramp, Xero seamlessly incorporates spend management, expense reporting automation, and deeper financial insights.

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This flexibility not only helps businesses save time but also enhances the overall efficiency and creates a connected, customized ecosystem tailored to their operations.

Why choose Ramp with Xero?

Combining Xero with Ramp takes your finance operations to the next level. Ramp complements Xero by adding advanced spend controls, real-time expense tracking, and additional automation opportunities, helping you save even more time and money.

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Here’s how Ramp’s features work with Xero:

• Sync data in real time: Vendor data, bill payment details, and tracking categories updated in Ramp automatically sync with Xero, keeping your balance sheet accurate
• Classify transactions your way: Import tracking categories from Xero into Ramp to simplify transaction coding
• Audit every transaction: Access detailed transaction histories in Ramp, from initial payment to syncing, with links to specific reimbursements or payments
• Automate routine workflows: Use Ramp's automation tools to streamline coding, expense approvals, and accounts payable

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Together, Ramp and Xero transform accounting from a chore into a strategic advantage, giving your business the clarity and control you need.

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Sync your transactions to Xero with one click.

Automate busywork and close your books faster with Ramp's robust, no-code Xero integration - included with your Ramp Account.

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How Mode uses Ramp and Xero to track spend in real time

Mode, a fast-growing analytics company, gives its clients access to data that helps them move at warp speed. However, Mode’s legacy corporate card was slow to issue, lacked visibility, and required manual reconciliation with Xero, leading to wasted time and a lot of frustration.

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The finance team had to manually track down receipts, reconcile transactions, and upload them into Xero, creating an unsustainable workflow for a fast-paced company.

But with Ramp, Mode now has a modern spend management platform with real-time reporting, first-party Xero integration, and instant card issuance. This integration streamlined onboarding, improved transaction visibility, and automated manual processes, resulting in:

• $10k in cashback: Earned in one year with no upfront investment
• Instant visibility into spend: Real-time transaction tracking allowed better forecasting and decision-making
• Consolidated subscriptions: Identified and reduced duplicate spend, saving costs
• Stronger controls: Instantly issued virtual cards with custom controls to manage spend and mitigate risk

"Switching to Ramp was an immediate success,” said Teo Evanick, Financial Controller at Mode. “As far as ROI, we received over $10k in cashback last year with technically no upfront investment."

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Ramp and Xero work seamlessly together to give businesses like Mode the agility they need. By integrating Ramp’s automation and visibility with Xero’s robust accounting tools, you can save time, control spend, and outpace your competition.

Maximize efficiency with Ramp and Xero

Integrating Ramp with Xero’s accounting software offers businesses a streamlined approach to managing finances. By leveraging the strengths of both platforms, companies can automate tedious tasks, gain actionable insights, and focus on what matters most: growth.

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Unlock the potential of Ramp and Xero and discover how our integration can redefine the way your business operates.