Investing in powerful accounting software like Xero is one of the best things you can do to save time and improve efficiency in your business. Beyond saving time, there are a number of other advantages that Xero offers.
Here are 5 surprising ways that Xero can benefit small businesses.
For most small businesses, getting paid on time is very important. However, poor and inefficient invoicing processes can negatively impact your cash flow. Xero has a number of features which make invoicing more effective, helping you to get paid faster.
Some of Xero’s best invoicing features include:
Monitoring the financial performance of your business is important for short and long term growth. When you understand the numbers, you can make more informed decisions.
Xero has a robust search tool that allows you to review any activities that have been recorded. This means you can search for and compare data from any period in the past. Knowing this information can help you make better predictions for the future.
You can also make use of Xero’s tracking feature which allows you to keep a close eye on particular categories of interest. For example, you can use the tracking feature to see how a particular department or location is performing.
If another business you work with regularly also uses Xero, this can speed up interactions on both ends. You will be able to send invoices directly to their Xero system. If you share your Xero network keys, you can connect Xero files and set up a small portal where billing information can be shared efficiently.
Meeting your tax obligations – including correct tax reporting – is vital for every business, but it isn’t always easy. Xero’s in-built tax features help you keep on top of GST returns, business income tax and employee PAYG taxes.
You can use Xero to calculate depreciation on your assets, generate all the reports you need for your tax return and estimate the amount of taxes you will owe. It makes keeping on top of your tax obligations much faster and smoother.
Business interactions don’t always take place in the office. Xero has a useful app that lets you send invoices, enter information and approve transactions on your mobile device. This means you can keep up to date wherever you are and stay on top of little tasks whenever they arise.
For more information about efficient accounting and how it can improve the health of your business, speak with the team at Lawrence Group today.