We are Xero accountants. By this we mean that we are Accountants with a black belt in Xero accounting who work exclusively with clients that use Xero. We are based in Surrey and work with clients across the UK.
Xero accounting software: What is it?
Xero is cloud-based accounting software, meaning you don’t need to download it to your computer so it is always up to date. In our opinion, Xero is the best package for businesses who want to have highly efficient bookkeeping and accounting processes as well as access to their accounting system from anywhere. Running a business can be hard work. Xero streamlines tasks, such as bank reconciliations and helps you do your bookkeeping faster, meaning your time can be spent running your business.
With accessible and integrated accounting software, the job of maintaining the books and records of a business is a less time-consuming exercise which can be managed daily rather than just in time to meet a HMRC or Companies House filing deadline.
When your accounting software is fully integrated, your accountant will need to spend less time organising, reviewing, reconciling and cross-checking your records in order to do what they need to do to prepare the Accounts and tax returns that you require of them. This will save you money and also mean your records are up-to-date quicker helping you to make better business decisions.
The risk of accounting errors is lower as record keeping is less manual so the risk of penalties resulting from poor record keeping is reduced.
When your accounting system is cloud based you can access your data and software from anywhere. This means you have a clear and up-to-date view of your financial position. Helping you answer the important questions like “How much profit have I made?”, “Who owes me money?” and “Who do I need to pay?”
Multiple approved users for your organisation can access your accounting records from anywhere using the Xero, making collaboration easier. Your accountant can be more hands on in giving you the support you might need. The benefit of this is that day-to-day issues are speedily dealt with and you can form a deeper relationship with your accountant, working closer with them to get better and more timely advice from them.
You can raise invoices on the go. The faster invoices are sent out, the faster you get paid. That’s got to be a good thing?
As well as this, by being in the cloud it is possible to connect your Xero account with any of the huge number of apps on the Marketplace. We use apps like Receipt Bank to automatically process your bills and Futrli to create custom performance dashboards to help you make better decisions for your business.
Xero accounting software: Who is it for?
Xero is cloud-based accounting software designed with small businesses in mind. Every UK business is required to keep a record of its accounting transactions and balances to satisfy its obligations to HMRC and, if the business is set up as a limited company, to Companies House.
It might surprise you to know that, although Xero is marketed as being for small businesses, it can cope with transaction volumes of up to 4000 bank lines, 2000 sales invoices and 2000 purchase invoices per month. Beyond this, there is scope for larger businesses to continue using Xero by integrating it with various apps from the Xero Marketplace. This makes Xero a great solution for any business to use from the beginning as it scales from start-up to established business very well.
Xero suits most types of business and, so far, I have rarely come across a business I would not recommend it to. The list of businesses that it supports is long and includes creative agencies, retail, construction, manufacturing, cafes and Non-Profit amongst many other business sectors.
We specialise in working with agencies, including web designers, market research, video production and PR & communications specialists, all of which are perfectly suited to using Xero accounting software. Project profitability can be measured, retainers can be invoiced automatically, payroll can be run through Xero payroll, quotes can be raised and accepted electronically and, by connecting Xero to a forecasting app such as Futrli, you can predict the future by building a project-by-project forecast to help plan resources.
Business is increasingly global. Many of the businesses we support here at de Jong Phillips have customers and suppliers all over the world and Xero is geared up to support that with multicurrency functionality and the ability to set up tracking categories to understand performance by country. As Xero is a global business, overseas subsidiaries can be run through their own Xero account.
When should I move to Xero?
As well as all the benefits of cloud accounting outlined above, the Making Tax Digital (MTD) VAT deadline of 1 April 2019 is around the corner after which time records must be kept digitally and filed electronically. Xero meets the requirements of MTD so you can be confident that once you move you will be compliant.
What are the Benefits of using Xero?
There are so many great features and functions in Xero that this list could go on and on, so I have picked some of the highlights and benefits of Xero and how it works.
Easy to use accounting software
Once set up, Xero accounting software is easy to use and many of the bookkeeping and accounting jobs that take up time in your business can be automated.
You can feel confident your numbers are accurate as the direct feeds from banks and other software apps reduce the need for manual intervention and reduces the risk of errors.
Xero is not the only accounting software with bank feeds or integrations with other apps, so why is it better than the competition?
- Firstly, it has bank rules that can be set up to speed up the coding of receipts and payments.
- Secondly, Xero has invested a great deal investing in machine learning so Xero can automatically complete the majority of a transaction based on previous entries leading to more time saved and more accurate records.
As Xero is a joined-up piece of software, meaning all the different sub-sets of your accounting records such as payroll, the debtors and creditors ledger, fixed assets and the cashbook all talk to each other so your accountant will not need to spend time reconciling all these different records before you can have confidence that your numbers are accurate.
Xero for Payroll
For agencies, the importance of having the payroll integrated into the accounting records is particularly important as one of your largest costs will be wages so you do not want to have to wait until your bookkeeper posts the payroll journal before you can see how much profit you have made for the month.
The Xero Marketplace brings together hundreds of apps that integrate with Xero to help you run your business. Using the right apps, that connect to your accounting software, can give you a bespoke IT solution that can have a big impact on productivity.
Xero software updates
To top it all off, Xero listens and invests. Xero are continuously expanding and improving the functionality and user experience of their software with new updates going live all the time. In our opinion it is the best accounting software out there and it just continues to get better.
Some more great Xero features
A run-down of some (and by no means not all) of the other great Xero features for accounting and bookkeeping include;
- The Xero mobile app enables invoices to be raised, the bank reconciled, and profit checked while literally on the go
- Professional looking, branded sales invoices that can be emailed to clients with links to payment apps to speed up payments
- Supporting documents can be attached to transactions so your records are more meaningful down the line for your accountant, client or HMRC
- Tracking categories can be set up to track performance of sub-sets of your business such as by geography or by team. We often use tracking categories to help clients track profitability by project
- Xero financial reports are simple to run and read so you don’t need to wait for your accountant to tell you what your profit is or who still owes you money
- Repeating sales invoices can be set up for retainers saving time and speeding up cashflow
- Overdue sales invoices can be chased automatically, again speeding up payments from clients as often a gentle reminder is all that is needed to prompt a client to pay
- This is a feature your bookkeeper will love - The find and recode feature allows data to be recoded speedily in bulk once again saving time
- Last but certainly not least, Xero is Making Tax Digital Ready!
How to set up your Xero accounting system
The thought of changing accounting systems can be a daunting one, particularly if you have been using your existing system for a long time, your staff know how to use it and your processes are all built around that system.
Xero has been designed to be intuitive to use and, with a little training from our team of Xero Accountants, we are confident that you will be happy with the move.
The online help and training videos that Xero provides are a great way to learn how to do new things in Xero and rest assured that we will provide you with sufficient training to ensure your team is up-to-Xero-speed. As your Chartered Accountants we are always on hand when you need to ask a question or when you need us to pop in to your Xero account to look at the numbers.
We are experts in setting up accounting systems for our clients and can work with you to manage a smooth transition of your records to Xero along with historic transactions going back up to 2 years.
Get in Touch
If you are ready to make the move tXero, get in touch with our Xero Accountants and we will get you up-and-running in no time.