What is Xero and how does it work?

Xero is cloud-based accounting software that aims to simplify financial tasks for individuals and small businesses. It allows users to access their financial information from anywhere and collaborate with their accountant or bookkeeper in real time. Xero offers a range of features including invoicing, expenses, bank reconciliation, payroll, and reporting. To begin using Xero, users need to create an account and connect their bank and credit card accounts. The software automatically imports and categorizes transactions, eliminating the need for manual data entry. Users can then create and send professional invoices, reconcile bank statements, track expenses, and manage payrolls. Xero also offers integration with various third-party apps that further enhance its functionality. By securely storing financial data in the cloud, Xero ensures that users can easily access their information, generate reports, and make informed business decisions.