Xero - online accounting software
New businesses can reduce risk with web-based accounting systems

Workers who are considering setting up their own businesses during the economic downturn will benefit from new business tools like online accounting software.

As the recession hits home, in the form of large scale layoffs and hiring freezes, more and more workers will think about setting up their own businesses. Some will go out alone as consultants in their area of expertise, while others will seek a lifestyle change and launch themselves into something completely new.

Regardless of the approach taken, everyone who is considering establishing a new business has at least one thing in common: they have a lot to learn. The risks of setting up a small business are high, as are the potential rewards. Fortunately, a new generation of web-based business software can remove much of the headache and the risk from running a small business.

Leading online accounting system Xero, for example, is a brilliant resource for small businesspeople who are not accountants themselves. Unlike other web-based accounting software, Xero has been designed specifically with non accountant business owners in mind.

“We set out to create an online bookkeeping system that would have all the advantages of software delivered over the internet, but which would be a pleasure to use,” says Hamish Edwards, co-founder and UK MD of Xero. “Often, businesspeople and entrepreneurs see accounting as a bit of a headache, but by designing a web-based accounting system that looks great and is intuitive to use, we think they’ll see it in a new light.”

Xero is a great product for any company where workers or advisors (such as investors or accountants) are based in different locations. Everyone who needs to can view the company accounts online, making collaborative planning much easier. “I would recommend to anyone who is thinking about setting up their own business, to use web-based accounting software ,” says Edwards.

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