Xero is a popular small business accounting software that can help take away a lot of the hassle associated with managing your finances.
To gain the maximum time and cost saving benefits from this software, you need to know how to make the most of its available features. So, we’ve compiled a list of ten easy ways that you can make sure Xero works better for your business.
1. Use an expert to help get your business set-up with Xero
The initial set-up provides the foundation for how your business uses the software going forward, so it’s important to get it right.
2. Choose the right subscription level
Consider what your priorities are and what you really need. Are you just looking for something to help with compliance, or could you benefit from broader functionality? And don’t forget that you can sometimes get the additional functionality you need via add-on / bolt-on software.
3. Use automation features
Use automation features, such as ‘bank rules’, which help reduce manual data entry.
4. Talk to an expert about uncoded transactions
Liaise with your bookkeeper or accountant to ensure you are coding these to the right places.
5. Use clear and consistent narrations
Use clear and consistent narrations, as this will allow the software to automatically code transactions.
6. Only pay business expenses from your business bank accounts or credit cards
This ensures Xero is working with a clear snapshot of your business’ finances.
7. Use lock dates to stop changes being made to a past period
It’s important that you don’t make changes once a quarter has been reconciled and lodged, and locking the period is a good way to ensure this doesn’t accidentally happen.
8. Use the online storage capacity
Use the online storage capacity that comes with Xero. It’s a good idea to store all files and documents related to accounting transactions in the same place. This will also make it easier for you to collaborate with your bookkeeper or accountant.
9. Use the superannuation clearing house functionality
Not only will this save you time, it will also ensure that your superannuation payments match up with what has been calculated in payroll. And, importantly, it will ensure you pay super on time.
10. Pay your wages via an ABA file (i.e. a batch payment file)
You can import this file directly into your internet banking to pay your employees using a batch payment. This will save you time and prevent errors occurring in payroll.
Infographic Source: 10 tips to help your business get more out of Xero