When running a business, you want to ensure you get the most from your Xero accounting system.
It is designed to make your life easier and to give you a running commentary on your finances. We’re not saying there’s a host of ‘hidden features’ to take advantage of, but there are ways to make sure you get your money’s worth.
Here’s how to get the most out of your Xero accounting system for your business.
Set up your bank feeds
Having a Xero accounting system and not being able to check your bank feeds in real time seems a bit counterproductive, doesn’t it? We recommend linking your business bank accounts to Xero as soon as you set up.
With the nature of open banking, you’ll get live feeds showing the money going in and coming out of your business account. This will be paramount if you want to check transactions against invoices or receipts – keeping you in the loop 24/7.
Track your inventory
Inventory management is essential for any trading business. Let your stock drop too low, and you’ll have supply issues. If you overorder, you’ll be sitting on dead money. Xero can track the numbers for you.
By simply entering your current stock levels and processing your order invoices, you’ll have a real-time view of your inventory. As soon as you make a sale, Xero will reflect it in your stock count. This feature is especially helpful for eCommerce businesses.
Recharge expenses
If you’re working on a client project, you’ll likely incur expenses for materials to create the finished product. Through your Xero accounting system, you can recharge these expenses to the customer all from the app.
Do it once, and Xero will prompt you to add future expenses to any following invoices. This means you won’t lose any money on billable expenses when it comes to getting paid for your work.
Repeating invoices
Before the Xero accounting system, drafting countless invoices for clients was a pain. Repetitive paperwork is the bane of every business owner’s life.
With Xero, you can set up repeating invoices to automate this process and send them off to clients on dates set by you. This also minimises the risk of forgetting to send one once your work is complete.
Another helpful feature is invoice reminders. No one likes waiting to receive payment from a client or chasing after an invoice. In Xero’s settings, you can create invoice reminders and send them whenever you want.
Forget about paper receipts
Okay, maybe don’t completely forget about them.
With your Xero accounting system, you can upload pictures of your physical paper receipts and digitally store them on your phone or laptop. This makes your life much easier come tax return season.
You won’t have to rifle through a shoebox of scraggly receipts again. Digitising them also means you’re far less likely to lose any and, in turn, lose out on claiming those expenses back.
Make the most out of Xero
Your Xero accounting system is there to work for you and make life easier. By learning its plethora of features, you can make your business’s accounting as efficient as possible.
As time progresses, Xero will likely offer more tools and add-ons, and learning how to use these basic features now will help to future-proof your business. As a Xero Gold partner, we believe in helping our clients unleash the full force of the software.
If you need advice on the best ways to use Xero for your business, get in touch.