The process of keeping track of everything – expenses, revenue, balances can be complicated. Doing it manually is time-consuming and requires constant attention to detail. Luckily, there are various tools to help you simplify the process and to help you stay on top of your finances. That’s where Xero accounting software enters the picture.
Xero accounting software is one of the best software to simplify the bookkeeping and accounting process. Since its inception in 2006, Xero has been making waves across the accounting industry. From small businesses to freelancers, the software has garnered the respect of all its users who can save hours on end with its technology. With Xero accounting software, you can see where your money comes from and where it goes all from the same place. Xero is excellent accounting software that helps you take control of your money, grow your business and manage your life. In this article, let us learn ten ways you can use Xero accounting software to make your life easier, so you can focus on running your business.
1. Take advantage of the 30-day free trial
The free trial is a great way to get your feet wet with Xero accounting software. You will be able to try it out before making any commitment, which is essential if you are unsure what it can do for your business. A 30-day trial will give you plenty of time to figure out the best ways to use the software and find out how it can benefit your company in managing finances, saving money, and being more productive.
2. Choose the right subscription level
Accounting is not a one-size-fits-all experience – there are many different options, packages, and pricing plans suited to all different types of businesses. Xero offers three different levels of pricing based on the size and complexity of your organization. For example, you would need the Standard tier if you want short-term cash flow and business snapshot or to reconcile bulk transactions. The Premium tier can be used for multi-location businesses with multiple management staff. The Starter tier is the best option for small companies.
3. Customizing Your Business Profile
As you add your company details, such as name and industry, Xero will automatically pre-fill some of the fields for you. But if you need to add more information about your company’s financial history, such as an account number or a bank code, just click on the + sign and enter that information in the new field that appears.
5. Adding a Bank Account and Connecting to a Payment Processor
You can automate and simplify your transactions by connecting your bank account and payment processor. This will help you better understand your finances, make it easy to keep on top of payments, deposits and keep track of all the important financial information. Multiple payment gateway integrations will allow you to accept payments easily.
4. Customizing your Xero Dashboard
Once you have set up all your accounts and transactions, it’s time to customise your dashboard. This is where you’ll find essential information on your business at a glance. The dashboard can be customised to show some or all of the following: customers, invoices, expenses, bank account balances, scheduled tasks, and contacts. You can customise your dashboard by adding or removing reports. You can also make changes to the visual style of the dashboard, for example, changing the color scheme, fonts, and text size.
6. Invoicing Validation Process
With the validation process, you can define specific parameters for what triggers an invoice to be validated. For instance, perhaps you want all invoices with a value of more than A$1000 to be validated. Or maybe only invoices that are set to your preferred currency will validate. You can also use email alerts to notify you if an invoice does not validate for any reason. Also, you can take advantage of e-invoicing by which you can send and receive your invoice from Xero while the same will be available on your customer’s or supplier’s accounting system for approval or payment process.
7. Best use the Xero reporting tool
The Xero reporting tool offers several useful reports to customize to suit your business. These include sales income, customer invoices, sales taxes, purchase invoices, and bank statement reporting. This is another powerful tool in the Xero arsenal that creates custom reports. With just a few clicks, you can create reports on your accounts, expenses, customers, and invoices. You can use these reports to find your business trends or compare yourself against competitors’ performance.
8. Using templates to keep track of finances
If you are looking for an easy way to keep track of your finances, templates are the way to go. Templates can be customized to fit your specific business needs, which means that you have a customized plan in place from the beginning. Having a set schedule from the outset ensures that you don’t need to adjust it as time goes on, and if this is something you haven’t done before, it’s worth considering.
9. Maintaining compliance with GST and Superannuation laws in Australia
Australia has a complicated accounting system, and if you’re not careful, you could be breaking the law. The GST is Australia’s business tax, and it must be paid on all goods and services that your company provides. Superannuation is an Australian retirement scheme funded by both employer and employee contributions with tax benefits. If you are an Australian business using Xero accounting software, you can easily stay compliant with the government’s GST and superannuation laws.
10. Using Xero Accounting Software to track other metrics related to your business
The accounting software will help you with the basics of your business’ finances, but it can also be used to track other metrics related to your business, such as customer satisfaction or inventory. This way, you’ll know if you’re performing well or need to make changes moving forward.
Bonus Tip! Reach out to an expert to help you build your business with Xero.
When you are first starting out with Xero, it can be tough to figure out how to use the software. Even if you’ve used accounting software before, Xero will present new challenges. Luckily, there are many resources for help. Experts who know the ins and outs of Xero can save you loads of time and frustration by getting you up to speed on the basics of the accounting software. Reach out to an expert to help you build your business with Xero.