The leader in the mobile point of sale race in the UK, iZettle, offers easy integration with small business accounting software Xero. What does this mean, and what are the benefits for small businesses?
One of the advantages offered by mPOS (mobile point of sale) applications like iZettle is that it allows small merchants and other small businesses to digitise their sales in an extremely simple way. The inventory can be entered in the app, and card sales will be recorded automatically. Cash sales can be entered too, allowing merchants to keep track of every sale and get easy-to-use revenue reports.
For an in depth review of iZettle see iZettle review – easy, yet feature rich terminal and POS system
For many sole traders the accounting features in the iZettle app will be sufficient for their needs. The majority of small businesses, however, will experience time savings with one integrated accounting system for payments, invoices and even payroll. This is where a cloud accounting software comes into the picture.
UK accounting systems traditionally integrate poorly with payments
One of the main challenges with UK cloud accounting systems has been lack of integration with payment systems. Even Sage One, one of the more popular cloud accounting systems, offers surprisingly basic integration with its “sister” SagePay.
Xero is currently the most advanced cloud accounting system for small businesses in the UK. Until recently, it did not offer integration with any payment system. Xero–iZettle integration was introduced in February 2015, and is at time of our testing (August 2015) working close to seamlessly.
How does Xero integrate with iZettle?
The basics of the integration is very simple: Once you have connected your Xero account to iZettle taking some basics in your online iZettle account, iZettle will import all data into Xero automatically.
The video explains how you connect your iZettle account to Xero.
Once the integration is set up, the import for each day will take place at 10 pm the following day. Refunds issued through iZettle will be recorded in Xero as well. iZettle fees should be set up in a separate expense account in Xero.
A disadvantage for merchants that have been using iZettle for some time, is that sales before 4 February 2015 cannot be imported into Xero.
What does it cost?
iZettle only charges for transactions (and the up front cost if you purchase the iZettle Reader). There are no monthly fees. For new business customers to iZettle, the iZettle Reader can be purchased for as little as £29 here.
Xero, on the other hand, only charges a flat monthly fee; there are no up front costs.
Xero offers three pricing plans: Starter priced at £10 per month, Standard priced at £22 per month and Premium 10 for £27.50 per month. There is a free trial for you to test before you subscribe, and the first months are often discounted. Payroll is extra, starting at £5 per month for up to five employees. There are no other hidden fees or additional charges.
Businesses with multiple currencies will have to go for the Premium 10 package. For no more than five invoices per month and 20 bank transactions, Starter will do.