Get the most out of your book-keeping on Xero
Xero is one of the most popular online accounting software tools in the world, with millions of businesses doing book-keeping on Xero. It lets you create invoices, do payroll and manage your expenses all from a single platform. However, if you want to get the best out of it – there are some things that can help make life easier for you! In this blog post we’re going to show how to use Xero more efficiently by using these simple tips and tricks.
Learn how to use Xero in your business
Xero can be a powerful tool for your business, if you know how to use it correctly. If not used properly or by the wrong person, Xero will only create headaches and frustration.
XERO is an invaluable resource that has the power to transform businesses when in talented hands but without any knowledge of what this software does; disasters are bound to happen!
Take the time to work through Xero’s training and learn how to use it properly. Xero’s online training is a great way to get familiar with the system. There are lots of different programs available, so take your time and find the one that suits you best! Or better yet, try a few – you never know what useful feature you’ll come across.
Decide what information is important to you
Knowing what you want to get out of something makes it a lot easier to use. For example, do you want to know which advertising channel brings in more revenue for your company than any other one? Which customer has been spending up big time on purchases from your store since day 1? When is your customer going to pay that big invoice so we can plan ahead with money management? or simply finding out what your profit is that week. Once you know this, the next question is how to use Xero to easily get to that valuable information.
Set up a chart of accounts in Xero
This step is a basic one but often overlooked. Customise the account codes to suite your small business and what information you need to know to make decisions. Need to know which of your Shopify Stores is making the most sales? or if Etsy.com is out performing NotonTheHighStreet.com? You won’t be able to do this if you just use the default account code, create a new one for each sales channel.
Automate or outsource your book-keeping on Xero
Lets be honest, spending time doing your book-keeping on Xero isn’t going to make you any money. It isn’t a value adding task in your business. As a business owner there is very few reasons to do it (saving money doesn’t count – your time is better spent MAKING more money!). Xero comes with lots of automation, take advantage of it. Set up the automatic bank feeds and automatic credit control to save your time. What you can’t automate, outsource. As accountants we’ve been doing Xero book-keeping and using online software for over 10 years. Let us use our expertise to free up your time.
Attach images to transactions
Get organised with receipts and book-keeping on Xero. Add the image of any receipt to a transaction so they are all organised, just in case HMRC need them for an audit or something! They can look back as far as 20 years in some cases – will you be able to find find that old receipt?! Keep it safe by photographing them and attaching it to their respective transactions. Here’s a few more tips for doing book-keeping for VAT on xero.
Check & update Xero regularly
The best way to get the most out of your online accounting software is by using it and keeping your book-keeping on Xero updated. It’s not just a tool for doing accounts, but also an invaluable resource that can help you make decisions based on information and data rather than guess work! book-keeping on Xero If there are any reports or features in Xero which don’t seem clear – ask us we’ll be more then glad to answer your questions.
Ask for help
If you’re not sure about something, ask for help. Xero has a huge community of people who are happy to answer questions and provide advice on how best use the software. Or of course ask your accountant – we’ve been using xero for over ten years so have picked up a thing or two along the way 😉