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Xero Blog: Five Top Tips for a Fresh Start for your Business with Xero
As the new financial year approaches, businesses seek ways to improve, streamline and make informed decisions for the year ahead. Xero, a leading cloud-based accounting software, offers several features to help you do that. This article provides five top tips on how to give your business a fresh start with Xero.
Xero tip 1: Streamline your invoicing process
Why invoicing is important
Invoicing is a critical part of any business and directly impacts your cash flow. Ensuring it’s efficient and accurate is vital to the success of your business.
How Xero can help
Xero’s intuitive interface makes it easy to create invoices. You can customise your invoices, add your logo and even send online invoices directly from the platform.
Get paid faster.
With Xero, you have several options to make it much easier for your customers to pay you. Features like Get Paid Faster and adding a Pay Now button to your invoices speed up the payment process.
Don’t wait for late payments. Set up automated reminders in Xero to notify your clients of upcoming or overdue payments.
Clear and consistent: Keep your invoices clear and consistent to avoid confusion.
Up to date: Keep your invoice templates up to date to reflect any changes in tax rates or company details.
Xero Tip 2: Use Xero for your bookkeeping
The importance of bookkeeping
Bookkeeping isn’t just about reconciling accounts; it’s about providing valuable financial data that you can use to make informed business decisions.
Xero’s accounting features
Xero gives you real-time access to your financial data to keep track of your income, expenses and cash flow at your fingertips.
Reconcile on the go
Bank reconciliation is a breeze with Xero. Connect your bank accounts to Xero, automatically reconciling your bank transactions with your accounting records.
Xero can integrate with third-party applications such as QuickBooks and various payroll systems to further streamline your accounting and bookkeeping processes.
Set goals: Use the real-time data in Xero to set financial goals for your business.
Regular checks: Make it a habit to reconcile your accounts regularly to ensure all data is accurate.
Xero Tip 3: Plan for tax and compliance
The importance of planning
Regarding tax returns and compliance, the deadline is one of many things you must consider. Proper planning will ensure you meet all legal requirements and take advantage of tax benefits.
How Xero simplifies tax planning
VAT and other taxes
Whether it’s VAT or other tax forms, Xero has features to simplify tax calculations and filing.
Xero allows you to generate a range of financial reports, which can help with tax planning and assessing your business’s overall health.
Xero allows you to work directly with your accountant or financial adviser. This collaborative capability ensures you get the support and expertise you need for tax planning.
Prepare early: Don’t leave tax planning until the last minute. Use Xero’s features to start planning well in advance of deadlines.
Seek expert advice: Use the Advisor role in Xero to consult with experts on complex tax matters.
Xero tip 4: Improve cash flow management
Why cash flow management is crucial
Cash flow is the lifeblood of every small business. It affects your ability to pay bills, make investments and even cover your running costs. Effective cash flow management is vital for sustainability and growth.
How Xero can help
Cash flow dashboard
Xero provides a comprehensive dashboard that gives you a real-time overview of your cash flow. This enables you to make informed decisions quickly.
Plan and schedule your payments within Xero to ensure you pay your suppliers on time and receive payments from customers before they are due, improving your cash flow.
Ageing payables detail report
With features like the aged payables detail report, Xero allows you to keep track of outstanding payments, so you know who to chase and when.
Regular monitoring: Constantly check your cash flow dashboard to stay on top of your financial status.
Prioritise payments: Use the information in Xero to prioritise payments to and from parties with the greatest impact on your cash flow.
Xero tip 5: Use advanced reporting features
The need for advanced reporting
In today’s data-driven world, advanced reporting is not just a need but a requirement. The more you understand your business data, the better decisions you can make.
Xero’s reporting features
Xero allows you to customise reports based on your needs, giving you the most relevant insights into your business.
With real-time reporting features, Xero ensures you have the most up-to-date data, enabling you to make quick and effective decisions.
Need to share these reports with stakeholders or advisors? Xero allows you to export these customised reports in various formats, including PDF and Excel.
Update regularly: Ensure you regularly update your custom reports’ parameters and data points for the most accurate insights.
Collaborate: Use the export features to share these reports with your team, consultants or stakeholders for a more collaborative decision-making approach.
Xero offers a wealth of features to help you streamline your invoicing, optimise your bookkeeping and plan for tax and compliance. As you prepare for the year, these top tips can give your business a fresh start to thrive.
So why not make the most of what Xero offers and put your business on the road to success? Start your fresh start today!
Yes, there is additional advice you should consider if you are switching from another accounting platform such as Quickbooks. You’ll want to factor in the cost of transferring data from your old system to your new one and allow yourself plenty of time to learn how to use Xero, as this may require some training or reading through the existing documentation provided.
The best thing to do is to contact the support team, who will walk you through everything step by step so that you understand exactly how things work within the system, whether sending invoices or dealing with payments.
Xero offers a wide range of third-party integrations, including apps for inventory management, customer relationship management (CRM) and e-commerce platforms. First, identify your business’s specific needs and pain points to make the most of these integrations. Then, explore the Xero marketplace to find apps to address these needs.
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