Xero, the global small business platform, today announced that Formations, a financial management solution for full-time self-employed workers and Xero platinum partner, has chosen Xero as its preferred cloud accounting solution provider to support financial management among self-employed.
Formations helps self-employed workers establish and maintain their business as an S-Corporation, recognized as one of the most tax-efficient structures for the self-employed workforce. With Formations, users can save thousands of dollars every year on taxes, gain access to corporate level benefits like health insurance and 401K and enjoy the benefits of a steady paycheck.
Xero’s cloud-based accounting platform serves as the backend infrastructure for Formations to support its clients. Using Formations, self-employed workers can achieve better financial stability and gain real-time insight and recommendations on financial decisions to guide their businesses.
“The entire financial industry is going through a digital revolution moving to almost entirely digital activity. Payments, banking, money transfers, and even micro-transfers are being digitized,” said Shahar Plinner, CEO, Formations. “Businesses that will not adjust their back office and update their structure to work digitally and adopt cloud-based tax and accounting will have a hard time finding service providers and will struggle financially. Xero seamlessly connects our customers’ bank accounts to help automate the bookkeeping and compliance process and provides the most up to date information about the business financials.”
When evaluating accounting software, Formations selected Xero for its flexible and open API and rules engine. Bank reconciliation in Xero helps minimize work for clients and creates a hands-free data entry environment. As a tax solutions company, Formations needed technology that would enable them to show their clients’ tax position on a regular basis, and Xero helps provide clients with a complete view of their finances. This empowers Formations to focus their time on delivering greater advisory services to clients such as providing tailored insights and strategy that will further assist them in achieving financial goals.
“Throughout the COVID-19 pandemic, many solopreneurs and self-employed workers have seen an opportunity to adapt to changing market conditions and turn their side hustle into the main hustle,” said Ben Richmond, US Country Manager at Xero. “We know this is one of the fastest growing segments in the workforce and expect this trend to accelerate in years to come. We’re proud to work alongside Formations to help self-employed workers access the benefits of Xero so they can run their business from anywhere, understand their cash position and get the guidance they need to achieve their financial goals.”
Learn more here about how Formations and Xero can provide a holistic financial management solution for the self-employed.