Problems with Xero’s New Invoicing

Xero’s accounting software has been a long-term favourite for many businesses, providing a streamlined, cloud-based solution. It integrates several accounting functions, from invoicing to payroll, to allow businesses to maintain all their records in one place. However, recent updates to its invoicing system have prompted many concerns from users. According to many businesses, the new features that were meant to make invoicing more efficient, are not 100% user-friendly. This article will explore some of the key problems with Xero’s new invoicing system and suggest potential solutions.

Complicated User Interface

One of the most common complaints about Xero’s new invoicing system is the new layout changes. Previously, Xero’s interface had an easy-to-navigate design that allowed business owners to quickly create, send and manage invoices. However, the recent update has resulted in a more complex interface.

New features and additional steps have meant users familiar with the previous interface now need to re-learn the layout. The additional tabs for customisation, while beneficial in some cases, can be overwhelming for users who are simply trying to send invoices quickly.

Solution

Take some extra time to make yourself familiar with the new layout. Xero also offers informative videos and a knowledge base that can help guide users through the new changes. Xero Central is also available to provide 24/7 online support, if you require it.

Inconsistent Syncing with Other Systems

Xero’s cloud-based nature usually allows for smooth synchronisation between various tools and platforms. However, some users have reported inconsistent syncing between their invoicing system and other integrated business tools since the update. Additionally, there have been some delays in updates or missing information reported when syncing between Xero and other third-party systems.

Solution

Before adopting the new invoicing system, be sure to check the compatibility of your existing third-party tools with Xero’s updated features. You may also be able to perform a test run of the integration process to identify any potential issues before switching to the software.

Limited Multi-Currency Support

If you’re a business owner who deals with international clients or suppliers, it’s necessary to invoice in multiple currencies. Unfortunately, Xero’s new invoicing system has been flagged for offering limited support when it comes to managing multiple currencies.

Previously, Xero’s multi-currency feature allowed business owners to easily create invoices in different currencies and automatically convert exchange rates. However, the recent update has caused issues such as incorrect exchange rates, slow currency updates and a lack of flexibility overall when handling multi-currency invoices.

Solution

If you run an international business, you might consider exploring third-party integrations or even manual systems for handling multi-currency invoices. If you use an outsourced accounting team, you can also reach out to them to explore ways to automate and streamline the currency conversion process to ensure your invoices reflect accurate exchange rates.

Invoice Delivery Issues

Another issue reported by users is problems with the delivery and tracking of invoices sent through Xero’s updated system. Invoices failing to send, or the recipient not receiving them promptly have been some of the voiced issues. This can lead to delayed payments and frustrated customers, which no business wants.

The problem may stem from issues with email delivery or incorrect contact details stored within the Xero system. It’s worth checking for any errors in the contacts database, especially if you’ve recently updated your system or imported customer data.

Solution

To avoid these problems, try to regularly verify your customers’ contact information and ensure your invoicing details are up to date. It’s also advisable to monitor whether emails are being marked as spam or blocked by email filters. A possible solution may be to export your invoices as PDFs and send them directly to customers via email if you continue to have delivery issues.

Reporting Limitations

Xero’s invoicing updates have also raised concerns when it comes to reporting features. While they offer standard reports on sales and outstanding invoices, some business owners find these reports lacking when compared to the level of detail they require for deeper financial analysis.

There are now fewer customisable reporting options, which is a limitation for many businesses who require more granular financial insights. Without this proper breakdown of data, businesses may struggle to track trends in customer payments, identify late payers, or forecast cash flow accurately.

Solution

If your business requires more in-depth reporting, you might consider using add-ons that can offer you more advanced financial analysis tools. Choose one that integrates well with Xero, so you can still be provided with the detailed insights you need for better decision-making. Alternatively, if you choose to outsource your accounting functions, you might also consider outsourcing financial director services, which will provide you with in-depth, customised reports to suit your business’ needs.

While Xero’s new invoicing features offer some impressive upgrades, they also bring a range of challenges that might impact your business’ operations. For many who rely on this software for seamless invoicing, this can be extremely frustrating.

If you’re facing problems with the new invoicing system, Ratiobox is well-equipped to help. Our experts are competent in a range of accounting software and, as part of this, they remain fluent in recent updates and changes. Our team work to support your business’ accounting functions, so you don’t have to. If you’re considering outsourcing invoicing, seeking financial director services or more, get in touch with us today and see how you can get started.