If you are running a small to medium business in 2023, you understand how important it is to keep on top of your business finances. Chances are, you have just stepped out of January feeling exhausted trying to keep on top of it all.
Making sure that you are in control of what is coming in and going out of your business account is the difference between your company making money and going into the red. It is a laborious job when all you want to do is grow your business from the front lines.
Of course, there is the option of using software to handle your accounting, but you probably discovered that many accounting software packages have a steep learning curve and seem overly expensive towards your business. What can your small business do to handle its finances without shelling out a lot of much-needed money?
Let’s discuss Xero accounting software as an alternative, and talk about why you should be using it for your small business.
If your business wants to take on the accounting task in-house, then Xero is a cloud-based accounting software made specifically for the small business sector. It is also a much better choice than other expensive accounting software options. Xero performs bookkeeping functions like invoicing and payroll and allows you to connect the program to a live bank feed. Xero allows for cash-based and accrual accounting systems, making this perfect for businesses adhering to UK GAAP and IFRS.
You require at least two months or more of reconciled transactions in XERO before you see the financial metrics displayed in a meaningful way. These metrics include business profitability and the average time your customers take to pay you.
To ensure that the information on your dashboard is current, you will need to reconcile your bank transactions regularly.
The biggest benefit of Xero software is that you are gifted a clear financial overview of your business through a unique dashboard display, allowing you to see how much money is coming in and going out.
Xero’s dashboard provides quick links to the crucial parts of your business accounts and a snapshot of overall expenses, bank balances, creditors and debtors. Xero helps to track your payments and avoid errors in bookkeeping. Xero also allows you to customise your information to your liking by arranging the different cards for a more personalised experience.
Even the most technically challenged business owner can find help with Xero, with bookkeeping services offering full training on how to use the software for their business model.
Contact the team at Pebbles Bookkeeping today for help with Xero software training and bookkeeping services in Manchester.