As a business owner it can feel like there are not enough hours in the day. After sourcing new clients and supplying current customers all day you may think your day is over but then you remember the hours of accounting/back-office work that still needs to be done.
Business owners can easily find themselves working a 60-hour week and missing out on time with family and friends without a proper system and software in place. There has to be a better way?
Millions of businesses worldwide are now turning to cloud-based accounting solutions such as Xero due to its ease of use and its ability to create financial analysis at the touch of a button. At aperio, we have helped many businesses ease start-up accounting headaches by using Xero.
We have found that start-ups can easily become overwhelmed with the amount of time and energy required to accurately maintain the financial side of the business. From entering financial data, recording transactions, storing proof of purchase or reconciling your bank accounts; it all takes time. With so many extra tasks to do, you can see how a working week can easily extend to 60+ hours.
So why is tracking cash flow so important?
Any decisions on growing the business must be based on having a reasonable cash flow and knowing your true financial position. These can only be assessed by processing sales and payments on an accurate and timely manner to allow you know exactly where your business stands financially. All of this is before you even get to tax compliance requirements whether that is VAT, PAYE or RCT.
Because of all this effort, many businesses still struggle to get to grips with the financial position of their company. The volume and complexity as well as the time it takes to complete the financial work can leave business owners in a maintenance pattern rather than a growth pattern. Many business owners just run out of energy eventually.
How do you get your cashflow right?
There are two choices here for business owners.
- You, or a trusted member of staff can do all the booking keeping and hand it over to an accountant once a year.
- You can use a software like Xero in conjunction with one of Xero’s partners such as aperio to do the work for you.
To be blunt about it, business survival can depend on having a timely and accurate cash flow and knowing your true financial position on any given month. Upwards of 66% of failed businesses attribute their closure to financial mismanagement.
The beauty Xero is that it allows business owners to capture all their business interactions and converts it into actionable information in real time – both for managing the business and completing tax compliance when necessary. It is the ease of use that makes Xero Accounting Software stand out from the crowd. While there are many other platforms on the market that we could have partnered with, none of them, in our opinion, could compete with Xero.
What does online accounting software do?
The four main functions of online accounting software are;
- Records your business transactions automatically.
- Perform accounting calculations for you.
- Deliver actionable financial information and insights in real time.
- Provide tools for jobs like quoting, invoicing, and managing payments.
Xero’s online system bypasses manual data entry by connecting to a business’s transaction points over the internet and retrieving data for you. It pulls in details like date, price and customer or supplier name and prompts you to reconcile bank payments against invoices. It creates a seamless process that equals hours less a day in following a paper trail.
One of the major concerns most businesses will have nowadays is How to keep your data secure. Xero converts user’s data into unrecognisable code using financial-industry-standard encryption. Data is also stored in multiple locations to guard against server breakdowns keeping your business info safe and secure.
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Are you looking for professional help? aperio is a Cork-based outsourced accounting and consulting company that can take care of all your company formation, bookkeeping, management accounting, financial compliance, and financial project work such as grant applications.
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