Technology continues to revolutionise the bookkeeping industry and Xero is leading the charge. While great online accounting software is a must-have for businesses today, do you know everything your Xero account can do?
Here’s 9 easy ways to identify if your business is NOT utilising Xero to its full potential:
1. Not using any add-ons.
This is what Xero is all about! Add-on’s allow your business to operate leaner and more efficiently as well as gaining greater insight into your customers and business operations.
2. You’re trying to use Xero’s inbuilt inventory.
If you’re serious about inventory management then you need to consider an inventory management add-on. Xero’s inbuilt inventory is extremely limited and should only be used by businesses with extremely simple inventory needs.
3. You’re not utilising the inbuilt automated super
Even if you only have one employee, the convenience is probably worth the additional cost. Consider upgrading your subscription and automate your quarterly/monthly super contributions. Learn more about processing automated super payments
4. Your accounts aren’t reconciled
There’s no point having all that technology and information at your fingertips if it’s not up-to-date and accurate. Consider professional bookkeeping services immediately!
5. Your accounts aren’t aligned to your EOFY statements.
Contact your accountant and ask them to bring them into line ASAP. Having an accurate balance sheet is important.
6. You don’t know what ABA files are.
If you’re still manually processing your employee & supplier payments, then you need to learn about batch payments & ABA files.
7. You code all your transactions off the bank feed.
Whilst coding from the bank feed is sometimes appropriate, you need to look at how you can reduce the number of transactions your coding and start utilising the ability to bring transactions & source documents into Xero & then utilise the auto-match functionality.
8. You haven’t setup any rules.
Every business has repeat transactions where there’s no benefit to bringing in a source transaction. Things like interest income/expenses, bank fees, etc can all have rules created so the same treatment is applied every time they occur.
9. You don’t know what ‘cash coding’ is.
Cash coding is a great function to really quickly & easily code lots of items from the bank feed. Particularly useful for businesses that have a lot of repetitive transactions that all needed to be coded to the same spot.
Book a Free 30 minute Xero Assessment
Do you need help leveraging your Xero account? Book a free 30 minute assessment with one of our qualified accountants here. ProAMS is Xero Gold Partner providing cloud-based accounting systems that will transform your business.