How to Get the Most Out of Xero if You’re a Small Business.

Just because you run a small business doesn’t mean you shouldn’t get software with all the bells and whistles you require.

Xero, one of the leading names in cloud accounting, could be the perfect match for you. But you may wonder: ‘How do I make the most out of this bit of kit?’

Well, we’re here to explain how to use Xero to its full potential, in turn making your small business as efficient as possible.

So what is Xero exactly?

Xero (as mentioned above) is one of the most popular cloud accounting software providers currently on the market. Originating from New Zealand, Xero markets itself specifically towards small to medium-sized businesses, yours included.

With three plans to choose from, you can decide how you want Xero to work for your business. Boasting a variety of features, it can help you streamline your business’s financial admin and build a stronger bridge between you and your accountant.

Here are some ways to make the most of it.

Connect your bank

If you want to get the most out of Xero for your small business, you should first link your bank accounts.

By doing so, you’ll get real-time automatic bank feeds showing you every pound and penny going in and coming out of your account. Not only will this be useful to track payments, but it will also help you get a clearer picture of your cashflow.

Better yet, the number of firewalls and further security measures mean you won’t have to worry about your connection being at risk.

Simple reporting

Another bonus of Xero (other than real-time bank feeds) is the instant reporting features. You can customise the content of your financial reports to give you the information you need anytime, every time.

Additionally, the reports will tell you how much tax is owed from each sale, taking the guesswork out of your taxable income reporting come your year-end.

It’s not just your future finances Xero can help you with; you can also compare your business’s income from previous months. This will be extremely valuable when building cashflow forecasts.

Integration and automation

What’s the use of the latest software if it doesn’t integrate seamlessly into your business?

Other than your bank, you can integrate Xero with Microsoft Outlook, Mailchimp and, for the eCommerce entrepreneurs out there, Shopify. This means, all from Xero, you can:

  • send and receive invoices
  • send your team’s payslips
  • receive sales totals and set stock levels for your online business
  • take and make credit/debit card payments (when using Stripe).

Better yet, you can automate most of these processes. So, rather than entering the same details every payday, you can just enter each employee’s hours, and Xero will do the rest for you.

Take back control

Running your own small business has a number of pain points, the majority of which fall into the administrative side.

So, by taking full advantage of the features Xero offers, you can do away with the countless hours of number punching and make lighter work of your accounting.

Get in touch to discuss how Xero could help your small business.

What are you waiting for?

We’ve had so many clients in the past who said, “if only we’d spoken to you sooner.”

There’s no time like the present, so give us a call or send us a message.

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