Xero is a cloud bookkeeping provider. This means that instead of having a piece of software on your desktop that you have to struggle with on your own, you have access to a web account, that you can link to your bookkeeper and accountant. Together, you can make financial decisions based on real-time information.
The majority of transactions now occur virtually, e.g. emailed invoices to clients or digital receipts direct from websites. It makes sense that bookkeeping should keep up with this trend. Instead of a bookkeeper picking up a box of paperwork every month to summarise, these digital receipts can be forwarded from your email, straight into your cloud bookkeeping account. This means that your bookkeeper can work on your information throughout the month, so that when you log into to your account you will see up to date figures from which to make your business decisions.