I remember when a friend told me to switch my phone from Nokia to an iPhone with the phrase “this will change your life”. It did – and the same thing happened when I started using Xero.
Xero is accounting software that is currently leading the field for small business bookkeeping. Sure, it may not sound so glamorous, but anyone who dreads bank reconciliations really should take a look.
Here’s everything you need to know about Xero online accounting software.
What Xero Is: Online Accounting Software
Xero is a system that you can log into anytime, anywhere (on your Mac, PC, tablet or phone) so you can see up-to-date financials for your business. It’s small business accounting software that’s simple, smart and occasionally magical.
What We Think About Xero
We love Xero! It’s perfect for anyone who keeps any kind of accounts, whether that’s personal or business. For you, Xero’s greatest gift is efficiencies. The system is easy to use and pretty intuitive. Best of all, Xero links with multiple other applications, making it easy to sync related data. For example, if you work on a consultancy basis you would be able to upload your timesheet, invoice and reconcile payment of that invoice!
The system can also;
- Pay bills automatically
- Speed up the process of bank reconciliation
- Schedule automatic invoice reminders for late payments
- Check current cash flow from your smartphone
In short, the time savings given by being able to access your accounts online, from any device at any time, are enormous. And that’s before you’ve even taken a look at bank reconciliations, invoicing, bill paying… the list goes on.
Two of the most important parts of bookkeeping are recording transactions and reconciliation.
It is a legal requirement to record all of your business transactions (whether you’re a sole trader or a small business owner). It is also important to keep proof of purchase (such as receipts) for anything you want to claim as a tax deductible expense. Xero allows you to automatically track all of your transactions, so you don’t need to input every single payment – very handy if you don’t have much time to spare!
Reconciling payments refers to cross-referencing your statements and your books to make sure everything matches. You may find that you need to account for payments, deposits and bank fees that take time to show up in your bank account.
If you own a small business; you will likely also need to include;
- Any accounts payable (such as bills).
Any accounts receivable (such as invoices you issue).
- Payroll (for employees if you have any).
Outsourcing Your Bookkeeping
If you don’t have the time to do your own bookkeeping, you’re not alone. Most small business owners are too busy to do their own, so they outsource the task to a more qualified professionals (such as our team of trained bookkeepers). This gives them more time to focus on the day to day running of their business – and it also means they don’t have to worry about getting anything wrong!
If you want help with your bookkeeping, click here to open a new tab so that you can find out more about our services.