When starting your own business there seems to be a myriad of things to do and options of software to help you through your daily tasks.
Our next few blogs will look at some of these options and signpost you to places to find out more information.
There are lots of options within the world of accounting software and in the interest of fairness we will be producing a short information piece shortly on these options for you.
However, this blog is going to look in more detail at the cloud based software Xero. This is the software preferred by ourselves in our practice. So here is a whistle-stop tour of Xero.
Xero is a very intuitive piece of software, giving you the ability to record your invoices, sales, expenses and payroll all for a monthly fee and a rolling month contract so no costly tie ins.
Within the Sales platform you can record your invoices both recurring and ad hoc as well as automatically chasing for those late payers. We all have them! Similarly, the expense platform allows you to record all your expenses and track your outgoings.
Our favourite elements of Xero are the management section where you can input all your standard information, including your VAT status, customise your invoices and set your standard email templates and also the budget manager.
The budget manager tools allows for you to forecast and monitor both your income and expenditure and produce a report detailing your budget versus actual and the variance between the two. This allows you to keep track of when you are projected (and actually) hit your income goal for the luxury holiday, business vehicle or business expansion.
Xero allows for easy reconciliation through integration with your online bank feed. It is important that you check with both your bank and Xero that your online bank system can be linked. Once integrated, reconciliation becomes a simple check and click process.
As a business support company, we love that Xero allows for individuals, bookkeepers and accountants can see the same information and where necessary can be accessing the information simultaneously. This allows for more effective meetings and updates on your financial position.
Xero really is one of those pieces of software that we could not do without. As a sole trader, it gave us all the data we needed and with help from our accountant we could interpret the reports. Now as a Limited company and practice expanding into bookkeeping for our clients, it really does provide a one-stop shop in terms of our accounting needs and means our meetings with the accountant become much more about the strategic development of our business along with updating our financial position.
We hope you have as much fun exploring the possibilities with Xero as we have.
Ps, A special offer for new businesses 50% off for the first 12 months and non-for profit organisations receive a 25% discount.