Just when business owners thought it was safe to come out from under the table after COVID and begin planning for the future, the war in Ukraine turned those plans on their heads. Now more than ever, up to date financial data has become crucial and this is where Xero online accounting software can help SMEs.
Some businesses just about survived Covid but the new normal has presented further challenges as well as opportunities. Being able to assess both sides of that coin is where the benefits of using a real time cloud-based accounting platform like Xero really pays off.
Simplifying Processes In Your Business
Simplifying processes in your business and becoming more efficient are two key areas where Xero can be used to help your business to adapt. Xero can help to pivot when necessary, by allowing you to look at your data in real time and ask your accountant about any issues that may be presenting themselves.
With a highly experienced team of staff all certified as Xero advisors, aperio will certainly be able to help you with anything you are unsure of.
Xero Helps Calculate Margins Easily
One of the huge benefits of Xero, as more business bring their offerings online, is its marketplace with over 1,000 applications. These applications integrate with your business to help complete or assist you in running your business far more efficiently.
Xero also allows business owners to keep a close eye on margins. One of the areas that causes most grief for companies moving online is trying to calculate their margins as well as taxes for online sales. Xero can take care of these literally at the touch of a button even to calculating online merchant fees which can be upwards of 5% of revenue. Xero is an end–to-end system which takes a lot of that donkey work out of the equation and shows you financial results on a convenient real time dashboard.
Xero is design with business owners in mind, not just accountants. It’s user-friendly interface makes it easy to use and an easy-to-use system is a system that will be maintained, and a maintained system is one that will give you accurate data. By helping Irish SMEs analyse margins and to start focussing on the products and services that generate actual profits which in turn will help with cash flow and either help to maintain the company’s current position or help the company to grow.
Avoid Cash Flow Surprises
Running accurate and up to date accounts payable reports on Xero, business owners and managers can get a true picture of what their cash flow looks like as well as avoiding cash-flow surprises in the coming weeks and months. By not looking at forecasts of what needs to be paid in the future, owners can often overlook upcoming business expenses and end up putting themselves and their businesses under unnecessary pressure.
In short, the reporting systems on Xero can give business managers and owners a clear data-based picture of what they can and what they can’t afford to do over the short and medium term. If what they see in those reports is not enough to maintain or improve their company’s position, then they need to create a specific plan to grow sales or look for alternative suppliers where margin is better.
Stay Focused On Costs
Xero allows you to focus on very specific areas where costs are rising within you business. For example, marketing and ecommerce prices are trending upwards at present and being able to keep track of the cost of those and the effect it has on your margins is a very important part of your business.
One of the areas of business currently facing huge challenges is business quotes. Prices which were changing month to month during Covid are now changing week to week. Xero’s quoting structures allow for this and surcharges can be built in both short term and on a recurring basis to ensure that businesses’ cash flow is protected. Quotes can include clauses for possible stock or service price hikes for clarity of both the buyer and seller.
Xero accounting software helps businesses to improve productivity by helping them to integrate technology for areas such as sales, inventory management, procurement as well as the accounting process leaving Irish companies more time to work on the business rather than in the business.
Book A Free Consultation
Are you looking for proffesional 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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