Cloud accounting software is now more popular than ever, with many family businesses deciding to switch from spreadsheets or legacy desktop software. Xero is our platform of choice and the one we recommend to our customers. Using Xero really speed up and streamline your processes and give you a greater insight into your finances. In this blog, we’re going to look at some of the ways that Xero can save you time and money.
1) Automated Invoicing
Xero enables you to automate much of your invoicing process. This means you can get invoices out faster, which helps to improve your cash flow. You’ll also have a digital record of all the information on an invoice, so it’s easier to keep track of who has paid and who hasn’t. Xero can also send statements as well as automatic reminders to clients and customers who are beyond their payment terms.
2) Better Cash Flow Management
Managing cash flow is a vital part of running any family business, but it can be difficult when you’re only using spreadsheets. With Xero, you’ll have access to much better tools for monitoring and assessing the financial health of your family business. You’ll also save time because the automated invoicing features mentioned above mean you won’t have to waste hours chasing late-paying clients. Your dashboard on Xero can give you a quick an easy snapshot on your cash flow health, including a summary of money due in, payments due out and current bank balances………………as long as your data is regular maintained of course!
3) Expense Tracking
Another time saving feature of Xero is expense tracking. This feature enables you to keep track of all your expenses and log them into the system automatically. You can then compare your budget against your actual spending at any time so that you can see where money has been spent or saved. We use Xero alongside Dext Prepare to automate the process of getting your supplier bills and receipts uploaded to your system quickly, easily and accurately,
4) Centralised Information
One of the best things about Xero is that it gives you a centralised view on all your accounts. This is really helpful, especially for companies who have branches in different locations. All this information will be available to your finance team wherever they are and whenever they need it, meaning everyone can work more efficiently. Having an experienced Xero certified advisor running your central cloud processing for your financial data means you have accurate information at your fingertips, giving you the power to make quicker and better decisions in your family business.
5) Real-Time Reporting
Another great benefit of Xero is real-time reporting. This means that you’ll be able to access your reports and information whenever you need it, so if something crops up or a decision needs to be made quickly, it’s right there at your fingertips. This enables you to make safe and snappy decisions about the future of your family business. Xero advisors can also help build bespoke reports for your family business that are relevant to you and that are easy to read and understand.
Another benefit of Xero is accessibility. Thanks to cloud technology, you’ll be able to access all your accounts wherever and whenever you need to. Xero also has mobile apps that enable employees to log expenses and time or update information whilst on the go.
7) Cloud Security
Finally, cloud accounting software including Xero provides you with more security than traditional desktop software does. All of your data is encrypted and backed up regularly so if something happens to one version of a file, there are always back-ups available which can be restored in mere minutes. You’ll have peace of mind knowing that your important data is safe and secure. Data breaches can cost businesses thousands of pounds, so this is a real advantage.
There are numerous benefits of using Xero for your family business.. This technology gives you greater financial visibility and thus empowers you to take well-informed steps towards a stronger and more profitable family business. Whether your family business is well-established or just getting started, it will definitely benefit from the use of Xero……………………even moreso when Xero is maintained by skilled and experienced experts such as the team at Satori Accounting.