Are you looking to increase efficiency and streamline the way you manage your business’s accounting?
One of the best ways to accomplish this is to use cloud-based accounting software like Xero. With Xero accounting software, you can run your business from anywhere in the world with full access to your business’ finances anytime, so long as you have an internet-connected device like a phone, tablet, or computer. Xero also allows you to give your staff access to the areas they need to do their job. You can even invite your accountant to work with you on your business in real-time.
Xero makes it easy to know how your company is doing financially every day by providing you with daily updates from your bank accounts and credit cards that show up on the Xero dashboard and in reports.
And that’s just the start! There are so many reasons why Xero is my cloud-based accounting software of choice. So, let’s take a closer look at how Xero can optimize your business’s accounting:
With Xero Accounting Software You Can Keep Track of Your Expenses
Tracking and managing expense claims is imperative to the success of your business. This is one area of your business’s accounting where you want to guarantee everything is optimized and running smoothly.
To do this, you need to have a system in place for managing employee expenses, as well as reimbursing them for these expenses. You should also have an efficient process for recording each expense (receipt tracking), its purpose, and when it was reimbursed. It’s also a good rule of thumb to categorize all expenses for management reporting and tax filing purposes.
With Xero, you can submit a photo of your receipt using your mobile phone or tablet, streamlining the process of keeping track of your expenses. You can even send push notifications to your staff, letting them know when an expense was added. Xero also allows you to establish company and user permissions to customize who can view, submit, and approve expense claims.
Since everything is saved online, it’s simple to make sure your receipts are all in the right place come tax time, and you won’t lose track of your business’s expenses.
Improve Your Business Reports
Financial reports such as income (profit and loss) statements, balance sheets, and annual financial reports are essential to keep your business running like a tight ship. If you’re looking to optimize your business’s accounting, then you’ll want to ensure that generating financial reports is a breeze. The best way to do that is to make it easy for your bookkeeping and accounting department to keep up with recording expenses and revenue.
With Xero accounting software customization options, you can implement a system that is specific to your business. For example, you can use custom columns, formulas, text blocks, and drag-and-drop accounts to edit your reports. Once your customized reports are ready, you can set them as defaults so you can quickly run them and get updates whenever you need.
Another good rule of thumb for optimal business accounting is to review your income statements and balance sheets on a monthly or quarterly basis, along with always reviewing your business’s financial year as a whole with annual reports.
Stay on Top of Your Accounts Receivable and Accounts Payable
Word of mouth is still one of the most reliable and efficient forms of getting new clients. Of course, that means your business needs to uphold its reputation. By staying on top of your accounts receivable and accounts payable, you’ll maintain excellent working relationships with your clients who will be more likely to recommend your business as a result.
You need to properly manage your accounts receivable if you want to have a healthy cash flow. This means setting up systems, policies, and procedures that work to evaluate customer credit and communicate your payment expectations to your customers. Xero accounting software will generate invoices accurately and promptly while tracking received payments and following up on any invoices that are past due. Plus, all the invoices you send using Xero are protected from unauthorized changes.
On the accounts payable side, Xero will help you pay your bills on time to avoid costly late fees or interest. With it, you can save time by scheduling bill payments automatically and set up repeating bills. You can also get an overview of all your bills and purchase orders under the purchases dashboard. To keep you on top of things, Xero will send automated invoice reminders to you, and you can even choose how often those reminders are sent out.
Hire a Bookkeeper
If you really want to make sure your business’s books are fully optimized, then you should hire a bookkeeper. Did you know that the expense of hiring a bookkeeper always pays for itself? A good bookkeeper will know the ins and outs of proper recording, will keep track and help you with the filing of regular government remittances (payroll liabilities, GST/HST, WSIB, and others), and so much more.
So, if you’re looking for a bookkeeper to help you maintain your business’s books, look no further than Canadian Cloud Accounting. We offer a full range of virtual bookkeeping and accounting services, payroll processing, government remittances, management reporting, and more. Our bookkeepers work under the supervision of an accountant who always makes sure that all transactions recorded properly and regular filings are completed on time.
We’d be more than happy to connect with you today and figure out how we can improve your company’s bottom line.