For many small businesses, one of the biggest time consumers is managing their accounting and invoicing. Accounting software like Xero can help streamline your processes and win back precious time. Here are 5 ways to use Xero to save time for your business in 2021.
Manually entering data into your accounting software and then checking that against your bank records is hugely time consuming. Xero’s Bank Reconciliation feature allows the accounting software to talk with your bank account, eliminating the need for manual data entry.
You can define “Bank Rules” within Xero to speed up the approval of particular bank transactions. Use bank rules to categorise expenses or deposits that frequently occur such as fuel expenses, electricity bills or monthly payments from recurring clients.
The next time an expense occurs or an invoice is paid into your bank account, Xero will automatically categorise the transaction. All you have to do is click “ok”.
If you have recurring customers, it can be time consuming to create a new invoice each time. Xero lets you automate repeating invoices so you can cut out the unnecessary steps.
For example, if you offer a monthly subscription service, you can send out a monthly invoice to your customers without lifting a finger. If a field needs to be changed each time (such as the amount payable) Xero will automatically create the invoice and move it to the Draft tab.
You can do a similar thing with any bills that you pay on a recurring basis. In the Repeating tab click “New Repeating Bill” and create a template with all the necessary details.
If your business provides the same service to multiple customers, you can speed up the invoicing process by sending multiple invoices in one go.
You will first need to set up contact groups within Xero. Then you can enter one invoice and Xero will automatically create the same invoice for everyone in that contact group. In the Draft tab you will find all the invoices and can approve them or make adjustments as necessary.
Having a standard follow up procedure for late or unpaid invoices is one of the key invoicing principles for better cash flow. Automating the follow up procedure within Xero can save you time and help make sure invoices get paid faster.
In Invoice Settings, set up invoice reminders which will automatically send an email to customers who have an outstanding payment. You can choose different settings such as when the reminders go out and how often. You can also customise the email message and even turn off reminders for particular customers.
Business decisions, financial transactions and accounting needs don’t always happen at the office. The Xero app means you can keep in touch and up to date even if you’re out with a client or working from home.
Like with many things in life, keeping on top of your accounting as you go instead of letting it pile up will save you time and effort in the long run. The Xero app is a handy tool for making sure you get the little jobs done quickly and efficiently as they come up.
Need advice about effective accounting processes for better business health? Chat with our team at Lawrence Group. We help local Perth businesses grow and thrive.
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