Why xero remains top of the class for sme businesses (and why we still like it)

Why Xero remains top of the class for SME Businesses (and why we still like it)

August 12, 2025

Background

Here at Sakura, we sometimes get asked why we use Xero (and QuickBooks – yet that’s a different blog), and not some of the other finance software out there.

The short answer?

It is by far the most widely used software in the UK and Ireland and continues to be the subject of significant investment for development.

Add to that the huge ecosystem of third party software that also works seamlessly with Xero – see our core tech stack of Xero, Dext and Telleroo alongside our use for specific clients of Approvalmax, Expensify and Float!

Why We Use Xero, Dext, and Telleroo
If you don’t already know Dext compliments Xero by streamlining data capture for all bookkeeping clients for example enabling clients or their suppliers to email in receipts, invoices, supplier bills, and which then captures key information directly from those documents. The day to day bookkeeping documents are then more quickly categorised and processed into Xero, saving our clients and our team time and reducing errors.

Telleroo is a fantastic piece of software that handles our payroll payments and supplier payment runs. It integrates with Xero to allow for batch payments to be imported directly into Telleroo, approvals to be set for the right people to approve the right payments allowing fast, secure payments to suppliers and staff.

It removes the need for more manual bank uploads into banking software or double-checking spreadsheets, reducing large payment runs into one payment and saving clients hours on their online banking.

What’s New in Xero Power Edition (2025)
Xero’s latest updates in the Power Edition are designed to make day to day bookkeeping faster and smarter for business owners and accountants.

1. Smarter Invoicing Tools

  • Keyboard shortcuts and a redesigned date picker make invoice creation faster.
  • Drag-and-drop attachments simplify documentation.

    2. Improved Reporting
  • Anything that improves the existing reporting features in Xero is great
  • There are some new options to include zero-balance accounts in reports, improving visibility and audit readiness.
  • Exporting to Excel is smoother, especially for teams using macros.

    3. Fixed Assets Changes
  • Again, this is an area that has always been quite poor within Xero, so changes here are welcomed.
  • A cleaner interface with the ability to attach files to NEW asset records.
  • Some easier tracking and documentation for compliance and audits.

    4. Analytics Powered by Syft
  • Xero has recently acquired Syft, with the aim of bringing some advanced analytics into the platform.
  • We have not found a need for using this more advanced analytics for our clients, yet if it is fairly seamless and priced well then we will look into Syft in some more detail in the coming months

    5. Inventory Plus Enhancements
  • There are also some changes to inventory, however our suggestion would be look at the wider ecosystem for a specific stock of inventory management system for your business
  • Generally, the stock module in Xero has been quite limited (for understandable reasons)

    6. Compliance Improvements
  • UK users can now file amended accounts directly to HMRC from Xero (which is likely to bevery useful with Making Tax Digital and the Companies House changes coming in from 2025onwards)
  • Centralised Government Gateway ID management simplifies tax submissions.

Final Thoughts

We don’t use Xero, Dext, and Telleroo because they’re trendy. We use them because they’re efficient, integrated, and built for growing SME Businesses.

The latest updates in Xero Power Edition show that Xero continues to listen to its users and invest in development of their software to the needs of modern businesses. It also shows that the recent software price increases are not just about making more form their existing users.

If you’re still relying on other finance systems, it might be time to rethink your software/tech stack. These tools don’t just save time – they provide you with an opportunity (when used properly) to make better decisions, faster.

Looking to get ‘under the skin’ of your business and take it to the next level?