Category Archives: Accounting

Posted October 31, 2017 No comments |Accounting, Business, Financial Services

Why should businesses invest in Xero training for employees?

With significant advancements in technology and proliferation of the digital world, businesses enjoy several advantages that were not available in the past. For instance, payroll, inventory management, bookkeeping, vendor management, logistics can be at the fingertips of business owners/CEOs when appropriate tools are chosen and optimized for their capabilities.

xero software logoIn this context, Xero positions itself as an accounting software that claims to be a class apart. Once employees of a business handling the bookkeeping functions are fully trained in using the Xero software, even individuals with no basic training in accounting or finance function can effectively take care of the bookkeeping needs of the business, according to Xero. Scalability is another great feature built into the software. This, in turn, means that the software keeps growing to cater to the growth of your business. Remember that when a business is on its growth trajectory, potentially more bookkeeping functions may be added to stay in tune with the enhanced needs. Businesses opt for a complete revamp of their bookkeeping software suit which obviously is expensive as well as time-consuming. With Xero, you can conveniently put this concern on the back burner since the software can be continuously tuned to the exacting needs of the business.

Though Xero is native to New Zealand and a little over a decade old, it has experienced exceptional growth in the Australian, European, UK and American markets. Xero has also won many accolades including recognition as the most innovative among growth companies in the world by Forbes magazine for 2 years in a row during 2014 and 2015. Briefly, Xero caters to the following functions of your business among others:-

  • Bank reconciliation
  • Expense claims
  • Financial reporting
  • Inventory
  • Invoicing – automatic creation and sending of invoices
  • Mobile apps (iPhone, Android/iPad)
  • Payroll
  • Online accounting – Accessible from anywhere
  • Purchase orders
  • Fixed assets
  • GST returns
  • Smart lists
  • Contacts – to keep track of customers and suppliers

According to Business Advice Specialists Group, the following are among the major benefits that you can expect from zero and therefore, it makes sense to ensure that your employees are trained to get the best out of this.

Centralized access to all your financial data

Data word With Xero as your bookkeeping software, accessing financial data of your business is literally at your fingertips. No more fumbling through different spreadsheets or search records to get what you need. If you are also someone who is constantly on the move, you will agree that global access to your financial data is more like carrying an entire office in your pockets.

Measuring business performance and profitability

When your financial data is constantly updated, the performance and profitability can be measured instantly. You can also generate a wide array of financial statements when needed including a P&L and Balance sheet. Budget variance reports, aged payables/receivables or any of the other reports that you may need even when you are distanced by thousands of miles from your usual business place can be accessed in minutes.

Making informed business decisions

By using your business information effectively, you have the ability to arrive at smart business decisions. For instance, you can analyze your campaign spend and understand its effectiveness before deciding on continuing with the campaign or otherwise. You can even raise a loan request to your bank using the Xero records generated from your account. With the records, it gets a lot easier for the bank to examine the viability of your request and make a quick decision.

Automating repetitive tasks

Many businesses tend to spend significant time in doing repetitive tasks. Xero helps to automate such tasks freeing up the time spent on those tasks for another productive deployment. For instance, if your business charges a subscription fee that is payable monthly or quarterly, your list can automatically receive renewal notice and reminders when the renewal is not made in time. This would, in turn, result in saving time as well as improve cash flow.

Access to multiple users

Xero can be accessed by all users authorized by the specific business seamlessly. This way, while the business owner focuses on cash flow, the Xero support team takes charge of issuing invoices, reconcile accounts, update expenses, and take care of filing statutory returns.

Payroll

payroll file and calculator

When the small business starts scaling greater heights, proper payroll management becomes essential. Xero has a full suite of inbuilt features that provide complete payroll management that can be activated when needed.

Minimal risk

With all functions of book keeps getting updated in real time, business owners can get sound sleep and nearly forget about chances of any fraud or embezzlement. The home dashboard also provides quick alerts about unexpected/unplanned transactions so that unauthorized expenditure is stopped instantly.

Having examined the advantages that Xero brings to small as well as established businesses, getting the best out of Xero for your business needs appropriate training for your employees as well as the business owner/key personnel.

For instance, if your business handles multiple products and perhaps even multiple pack sizes with varying margins, invoicing is not only a priority but also time-consuming. But, Xero operators who are trained can navigate the software effectively eliminating wastage of time wading through the complex tasks in invoicing.

Similarly, payroll is another area that calls for accuracy as well as efficiency. With Xero, your employees gain the confidence that their earnings and entitlements are processed in a professional manner and delivered in time. Trained Xero professionals can also store your documents in the Xero files promoting paperless businesses.

Confident Xero operators can be a significant asset to your business about strategic planning, submitting tax returns on time, preparing your Profit & Loss Statement, Balance sheet and other reports that help the business owner monitor the business more efficiently.

Posted September 5, 2017 No comments |Accounting

5 Reasons Why Your Business Needs An Accountant

Whether you’re a small start-up company or an established business, hiring a business accountant is essential for the welfare of your company. Many people are under the wrong impression that employing the services of an accountant is a luxury rather than a necessity. This kind of thinking might save you money on the short-term. But on the long-term, not having an accountant can turn out to be a very costly mistake.

Here are the main advantages of hiring an accountant for your business.

1. Keep Your Finances In Order

Bookkeeping can be a time-consuming and often boring task. If you don’t have the knack for it, then chances are that you’ll keep putting it off, procrastinating, and end up with a complicated mess as far as your finances go. Proper bookkeeping will make it easy for you to track your cash flow, know where and how your money is being used, and help you plan your business affairs better.

When you have a business accountant to take care of the bookkeeping, you will save a lot of time—time that can then be used in growing your business.

2. Avoid Tax Fines and Penalties

Having your own business means that you have to be on top of things at all times. Tax deadlines should not be missed; you should keep yourself updated on any new tax legislations that might affect you and your business.

Stack Of Files
Tax planning can be a frustrating task. Not only does it involve pouring over accounts for hours on end, but, if you’ve haven’t been organized with your bookkeeping, you might be in for a shock. Sometimes, the amount of tax you need to pay will be way above what you thought you owed. This happens as a result of bad bookkeeping where the finances were not meticulously tracked. If you want to avoid such hassles, then hiring a tax accountant is the way to go. Not only will an accountant do the paperwork, making your job so much easier, he/she will also be well aware of any changes in tax legislations and will update you about it. Knowing about such changes in advance means that you won’t be caught off-guard at the last minute.

3. Expand Your Business Faster

Experienced accountants are a wealth of financial information and wisdom. They can help guide you through your business decisions, evaluate potential projects to see what the probable outcomes would be and give you ideas on how to scale your business in the most efficient manner.

Calculator And A Pen On Graphing Paper

We live in a highly competitive, cutthroat world. Sometimes, a business might be making good profits in the first few years, but if it fails to expand and reach a bigger market, it can get eaten up by competitors. So, growing your business quickly is key to making your mark in the business world. An accountant can help you do this by giving you valuable advice and insight on all how you can grow your business.

4. Update Your Bookkeeping System

Gone are the days of bookkeeping ledgers and stacks of papers to keep track of your finances. We live in a digital world where everything is handled on the computer. Sure, you can get a bookkeeping software and try working with it. Or, you can hire an accountant who will know of all the best software available in the market and which one will be right for your business. Having an easy-to-use and navigate bookkeeping system in place will be a very efficient, time-saving manner to keep track of your financial business records.

5. Keep Your Taxes Down

Knowing the ins and outs of tax regulations and the legalities of it means that your accountant can help you save money by reducing your tax bill. The trick is to do it in a completely legal manner without any room for discrepancies. Only an expert who has an in-depth knowledge of taxation and corporate finance can do this.

These are just a few advantages that you gain when you rope in an accountant for your business. Accountants are so much more than just number crunchers. They can offer you timely advice when it comes to your business decisions, guide you in making the right investments and even be a valuable asset when it comes to networking and making new contacts in the business world. Not having an accountant can lead to a lot of complications when it’s time to grow your business, during the transition period where your business goes from a small startup to the next big thing in the business world. So, stay ahead of the curve by hiring an accountant.