It’s common for new businesses these days to do their accounting work. This is why the surge of popularity on using accounting software has reached not only accounting professionals, but entrepreneurs as well.
If you’re thinking of running an efficient system for your company but couldn’t fully grasp all the advantages it brings, reading this article might just feed your hunger for information!
So, hop on and examine these 7 brilliant ways to save time and money through accounting software and see how your business and current processes can benefit from this technological advancement. As a Xero advisor, we will also show you how Xero can assist you in these aspects.
1. Automates repetitive tasks.
Routine business activities involve sending invoices and statements, filing purchase orders, creating reports, and so on. Now, imagine being able to send or produce all of these documents in a few clicks or even automate the sending of regular invoices, Xero has a recurring invoice function where you can set invoices to be automatically sent to your customers weekly or monthly. Not only does it reduce the likelihood of errors, but it also helps save time and effort on the part of the staff.
There’s no need to manually encode purchased items and prices on receipts and spend days preparing for a report that could’ve been generated easily based on the available data. When a big chunk of labor is taken off either from you (if you’re more of a DIY) or from your accountant, you can put more effort into sales or you can save on labor costs. Whatever your set-up is, automating repetitive tasks always provide you more advantages!
2. Easily maintain summarized account data.
Businesses need to keep up with their management account regularly since this helps show the company’s current financial standing. The worth of information degrades over time. What’s the use of knowing the business’s performance six months down the road. Without accounting software, the process is extremely laborious as this would require manual data entries, making the whole procedure too risky for numerous mistakes. But with automation, you’ll see how your financial data is immediately reflected into a separate file dedicated to your management account.
3. E-invoicing feature.
Since the pandemic, more consumers have done away with the conventional methods of purchasing. Many have adopted and appreciated the convenience of shopping and paying online. Even with businesses slowly reopening their physical shops, going online and paperless is something that’s no longer new for customers.
When your company implements the latest accounting software, you get to enjoy this feature and save from your operational costs. In addition, you can also ensure timely payment reminders to your customers and a simplified process of paying e.g. embedded click-to-pay button. Xero allows easy integration of paypal and stripe payment gateways into your e-invoice so that customers can make payments easily with their credit card.
4. Generate financial reports swiftly.
Preparing a set of comprehensive financial report is one of the toughest jobs for accountants and entrepreneurs. Doing it manually takes away your precious time that could’ve been used to explore more market opportunities. But with automated financial reports, the program gathers the historical data and quickly generates the needed information. Financial reports such as balance sheet and income statement can be generated at a click in Xero enabling business owners to see an overview of the financial position of the business.
The file can also be sent through email so the recipient can receive the document in no time. Financial reports are usually needed promptly, especially when meeting with potential investors, associates, or partners. Showcasing your assets and your business standing at a lightning speed will deliver a great impression!
5. Real-time data syncing.
There are many brilliant ways to save time and money through accounting software, and one of these is through automated data integrations.
Moving tables, computations, and figures from an excel sheet to your accounting software can lead to data entry errors. Manual data entry is a famous culprit for inaccurate statements, and since business decisions including investors rely on this report, this can cause you as the business owner to make wrong choices and can even put your company in a less desirable state.
To avoid those unwanted mistakes, improve your business management systems by using an efficient program that is capable of reducing any room for costly errors. Xero, being one of the pioneers of cloud software has one of the largest number of integrations across different cloud software.
6. Monitor overdue accounts.
Unfortunately, many businesses have suffered hard due to a lack of credit monitoring. Collecting receivables promptly or knowing when a customer has not been paying is crucial to the cash flow of a business and as they say, cash is king! Most business do not fail because they are not profitable but due to cash flow issues. To avoid this, make use of accounting software to help you seamlessly monitor clients who have owed you, request payments, and keep up with the records. Xero can generate a receivable aging report at a click showing you the status of customer’s receivables. You can also send statements and reminders to customers in just a few clicks.
7. Customize as needed.
If you’re dreading the accounting software’s capability to personalize certain features, well, most programs are built to allow users to freely customize specific functions to encourage more time efficiency. So, whether you are in the service or product-based industry, you are welcome to tweak some of its components to your liking. Xero allows customisable invoices to reflect your business logos and even customized reports. There are also numerous Xero partners that offers add-ons specific to industries’ needs. By using these cloud solutions, you will be able to save money by not requiring to hire developers.
Change is inevitable for all businesses, and successful organizations regard it as more of an opportunity than a disruption. Start the movement of traditional to modern business processes! It may seem difficult to assimilate, but I believe these 7 brilliant ways to save time and money through accounting software will provide you with countless growth opportunities. If you are thinking of starting the process to implement Xero, you can contact us to assist with the implementation.