Assessing Efficiency and Accuracy of XERO Cloud Accounting Software

This research proposal aims to analyze the efficiency and accuracy of financial statement preparation using XERO cloud-based accounting software. The study investigates the benefits and challenges of XERO adoption, focusing on time productivity and accuracy improvements for small-scale chartered accountancy firms. The research employs a mixed-methods approach, including qualitative and quantitative research types, inductive reasoning, and interpretivism philosophy. Data will be collected through interviews with chartered accountants and secondary sources such as books, journals, and articles. Thematic analysis and purposive sampling will be utilized for data analysis and sample selection, respectively. The proposal outlines the research methodology, literature review, and ethical considerations, providing a comprehensive framework for assessing XERO's effectiveness in financial statement preparation. The study will contribute to understanding how cloud-based accounting solutions impact business operations, and is available on Desklib, a resource for students seeking study materials.

Research Proposal

TABLE OF CONTENTS
TOPIC :............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Background of the study..............................................................................................................3
Aims and Objectives....................................................................................................................3
Problem issue:..............................................................................................................................4
Scope Of The Study.....................................................................................................................4
Literature review..........................................................................................................................4
Research methodology.................................................................................................................6
Time-frame..................................................................................................................................7
REFERENCES................................................................................................................................9

TOPIC :
" To detect efficient and accurate means of preparing financial statements by using cloud based
accounting software XERO"
INTRODUCTION
Background of the study
Preparation of financial statement accurately is one of the major task of a company that is
required to be maintained with accuracy as it helps the company in maintaining efficiency of the
company in showing the actual financial position to its stakeholders. Using Excel software and
preparing the financial statements of the company is the most classical way of formulating
financial statements by the business. The XERO is a cloud software that can be utilised by a
company for preparation of financial statements can help the business in improving the accuracy
of financial statements (Jenkins, 2016). In this regard, the company can use this cloud based
accounting software XERO. The software contains program through which financial statements
are not required to be prepared manually. Rather, they can be generated with the help of software
automatically. Therefore, it results in improving the accuracy in the financial statements. In
addition, due to elimination of need of preparing reports manually, company can also gain an
advantage of time productivity in process of preparing financial statements.
The present study is based on determine efficiency and time productivity that a company
can gain through generating the financial statements by utilising a cloud based software XERO.
The research is being conducted by using several tools and techniques of data analysis, data
collection, sampling, etc. In the present research, secondary research method is being used for
data collection method.
Aims and Objectives
Aim:
"The aim is to analyse efficiency and accuracy in means of preparation of financial
statements that can be gained by using cloud based accounting software XERO"
Objectives:
 To determine effectiveness of XERO in providing time and maintaining accuracy
efficiency to company in preparing financial statements.
 To evaluate amount of productivity that a business can utilise through XERO.
 To detect challenges that a business can face in adoption of XERO.

 To recommend company regarding using the XERO software in more effective way.
Problem issue:
 Issue in collecting data regarding effectiveness of XERO.
 Issue in selecting the reliable source to be utilised for data collection process.
 Maintenance of viability and feasibility in the reserch.
 To fulfil ethical code of conduct while performing activities regarding research.
Scope Of The Study
The present study is based on analysing the effectiveness of utilisation of XERO in the
small scale chartered accountancy firm for maintaining productivity regarding time and accuracy
maintained while preparing financial statements. For making research on this topic, the
researcher will have an in depth analysis of the efficiency that a firm can generate due to
adoption of XERO software in the business. Further, as for data collection process, secondary
research method has been adopted, the scholar will take help of several books and journal based
on use of this software. Further, some articles on the effectiveness of XERO software will also
referred by the scholar for the research purpose.
Literature review
Theme 1: Overview of Xero Software-
Xero Software is the software was built mainly for the small businesses for accounting
purpose with many other applications. The software can be used on any computer device and it is
also having the mobile app (Jenkins 2016). The software is having 700 applications and multiple
users can work on the software for updating multiple items on the software. The software is
helpful for the small businesses where they can use the software for online invoicing and
tracking all the online bak information for the clients.
Theme 2: Benefits and Disadvantages of Xero Software
According to Flaherty (2017), Xero software is the accounting software which was
introduced in Year 2006 foe helping the small businesses and advises the businesses for
performance of their financial statements. This software helps the small businesses in knowing
their cash flows, online transactions, bills due which helps them in improving relationships with
vendors. The software is innovated specifically for small business firms so that it will be help
them in viewing their performance of the company by comparing them with other businesses. It

is easily accessible to any computer or device and it is affordable to all businesses with multiple
users. It is integrated with more than 700 applications in-built in the software to meet the
business needs.
On the contradictory Horodyskyi (2018), claims that the software's review are not good
from the users. Software takes a lot of time for data entry and because of lot of application many
times software stops in between of the data entry only. The software can be used by highly
educated professionals and it will be creating problem for the small businesses because they have
to hire professional which will be charging high cost to the company. One of the drawback of the
software was that it introduced a project management feature which got failed. There has been
increased in the customers complaints for the software and company does not look back for the
complaints made by the customers.
Jayasinghe (2018) said that according to recent article software has over 1,00,000 users
and it is working as primary accounting solution for 16,000 business firms. Xero is best for
medium and lower business firms who cannot afford high price for bringing this software in their
business. Xero is compatible with any device such as Google Chrome, Internet Explorer,
Mozilla Firefox, Safari etc. This software is also having Xero Accounting App for Android and
Apple products and also separate mobile apps with Xero expenses and Xero Projects. Software is
having excellent features such as dashboard, sales overviews, invoicing, Quotes, Clients Portal,
Contact Management, Bank Reconciliation Etc. It is easy to use by the accountants because the
software teaches them how to use the software quickly.
On the other hand Dimitriu (2014), said that the company is having poor customer
service and support. It uses the strong customer support but than also there are lot of customer
application which leaves unattended by the company. The company does not answer to many
emails and never offer phone support. They do not respond quickly to the complaints of the
customers and also if the complaints are received also there is no proper answer to the
complaints. The users of the software have also found that the software is very expensive as
compared to the other software. Software is having limited mobile apps and also faces reports of
bugs and crashes.
Theme 3: Challenges of Xero Software-

Xero software faces the challenges when the software is used by one user for multiple
work than the software stops at that time. Software has the problem of reporting bugs and
crushes at their website. The main problem at the time of accounting is the inflection point. The
other problem faced by the app is of customer support (Anders 2018). The main drawback of the
software is that many accountants are not familiar with the working of the software and they
don't feel comfortable with the software as they are with other software such as Excel,
QuickBooks etc.
Research methodology
Research type: Qualitative and quantitative are the main two research types which can be used
by the scholar for investigation purpose (Silverman, 2016). In order to assess the effectualness of
Xero software in against to excel based assessment qualittaive4 research type will be used by the
scholar. The rationale behind selection of such research type is that concerned research problem
cannot be presented as well as evaluated in quantitative form.
Research approach: There are mainly two types of approaches which in turn associated with
research aspects namely inductive and deductive (Kumar, 2019). With regards to the present
study, inductive approach will be followed by the researcher. This approach is selected over
deductive because it’s highly suits and in line with qualitative investigation. On the basis of this,
new theoretical framework will be developed through making evaluation of observations.
Research philosophy: In research, philosophies can be divided in two such as positivism and
interpretivism. By taking into account qualitative research type interpretivism philosophy has
been chosen by the scholar. On the basis of this, by interpreting qualitative aspects related to
Xero software such as productivity, efficiency etc effectiveness of concerned software will be
evaluated.
Data collection: For resolving research issue or problem data will be gathered from both primary
and secondary sources. Hence, interview will be held, using checklist, for the collection of
primary data set. For this purpose, 7 Chartered Accountant’s will be selected for getting deeper
insight about benefits and challenges associated with Xero software. Along with this, external
sources such as books, journals and scholarly articles will also be evaluated for secondary data
collection.

Sampling: Probabilsitic and non-probbailsitic are the main two techniques which is used for
sample selection. Hence, purposive sampling technique will be considered for the selection of 7
Chartered Accountant’s.
Data analysis: Techniques of data analysis such as SPSS & thematic varies as per the type of
investigation initiated. Hence, for evaluating the benefits of Xero software thematic perception
test technique will be used. On the basis of this, different themes will be prepared referring
responses given by the respondents.
Ethical consideration: For meeting ethical aspects, reference list will be added by the scholar
which in turn clear reflects that data is not copied from somewhere.
Time-frame
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Identificat
ion of
topic
Determina
tion of
Aims and
objectives
Research
proposal
Literature
review
Settings
questions
for data

collection
Collection
of data
analysis
of Data
Recomme
ndations
and
reflections
Conclusio
n

REFERENCES
Books and Journals
Anders, S.B., 2018. Practice Management Tools. The CPA Journal. 88(12). pp.70-71.
Dimitriu, O. and Matei, M., 2014. A new paradigm for accounting through cloud
computing. Procedia economics and finance. 15. pp.840-846.
Flaherty, S. 2017. Bookkeeping in the Cloud: Advancements in Accounting Software (Doctoral
dissertation, Appalachian State University).
Horodyskyi, M. P. and Hrabchuk, I. L., 2018. Software market analysis for preparing records and
reporting.
Jayasinghe, D. and France, A. 2018. Comparing reporting of MYOB Enterprise Reporter vs Xero
HQ Reporter.
Jenkins, J., 2016. Learning Xero. Packt Publishing Ltd.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Manisha, M. and Bosman, R. 2018. Effect of cloud accounting on an accounting firm’s costs.
Silverman, D. ed., 2016. Qualitative research. Sage.
Wyslocka, E. and Jelonek, D., 2015. Accounting in the Cloud Computing. TOJSAT. 5(4). pp.1-
11.
Young, D. and France, A., 2017. Evaluation of Software System Implementation in an
SME. Journal of Applied Management Research Ideas. 1(1). p.1.