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CH Accountancy
CH Accountancy

01245 791164 | hello@chaccountancy.co.uk

 Cloud Accounting & XeroXero Silver Partner

If you run your own business you cannot get around the fact that you have to do some element of accounting and file returns to HMRC.  Cloud accounting has become very popular over the last few years, and with the changes HMRC are looking to bring in - going digital - I can only see cloud accounting becoming even more popular, and an essential business tool.  The fact you can work on your accounts from whereever you are (via your desktop, tablet, smartphone) is a huge appeal to many business owners.

As you can imagine I have used a number of cloud accounting packages, but the one that stands out for me is Xero.  With its ease of use and excellent functionality it's not hard to see why Xero currently has over 600k subscribers and is ranked as the number 1 cloud accounting package with Forbes.  If  you travel by train or taxi in London you may have seen their ad campaign.  Xero recently did a take over of Old Street Station!  I am a Silver Partner with Xero, keeping my skills fresh and up to date with monthly webinars and various other CPD tasks.  I am a big fan of Xero, and use it with a number of my clients, and also for my own accounts.

The main benefits of Xero are as follows:

  • the dashboard when you first log on to Xero is a great visual of your business - what is owed to you and what you owe;
          Xero Dashboard            Mobile App Dashboard
  
  • you can sync your bank or paypal account with Xero, or import bank statements making reconciling the accounts a breeze;
                                                   Bank Reconciliation
Mobile App - Add a receipt
  • find you often loose receipts?  With Xero you can take a picture of a receipt and upload to Xero there and then.  You can also upload your purchase invoices/bills to Xero - no need to print and keep a paper copy.
  • invoices can be raised quickly and easily, and emailed directly to your customer, even from your smartphone when on the go;
  • you can use various templates/branding for invoices, such as different logo's for different trading names, or different terms for different payment options.  For example I have one template for standard payments, and another for my clients that are on monthly direct debits;
  • you can connect Paypal/Go Cardless/Credit Card supplier to Xero and use online payments - your invoice will have a pay now button which your client can click on and be taken to the online payment facility to pay the invoice immediately (similar to using Paypal invoices);
  • one of the things I find extremely useful is Xero is able to do an element of credit control for you.  You can set up invoice reminders so that an email is sent to your client once the invoice is 7, 14 and 21 days overdue - or at any interval you wish.  You can even send an email a few days before the invoice is due reminding them of the due date;
  • working with your accountant is simple - just create them a log in and they can log in as and when require to get the information they need - no need to back up and send a file over to them;
  • Xero can also integrate with various CRM packages (one for your IT supplier I'm afraid - I'm good with numbers not computers!)
  • Employees can have their own basic access to log their expenses and submit for approval, cutting out the double entry, once approved the expense claim is posted to your accounts (with basic access this is all they will see, so no need to worry about them seeing sensitive information - you can set the level of access, what they can and can't see)
  • Xero also has great payroll functionality.  It handles the payroll process, monthly RTI returns to HMRC, year end returns, starters and leavers, and also all the auto enrollment administration.  Employees can also have access to update their timesheets, request holiday and view payslips.
  • A major benefit of Xero, and cloud accounting in general, is the security - how many times have your laptop/computer died and you've lost all your files?  Xero is backed up on the cloud and on the Xero servers, meaning that even if your laptop dies, you will never loose your accounting records.
  • there are some fantastic add ons in the Xero Add On Marketplace, one in particular that has really helped me is Tripcatcher, allowing me to log my mileage on the go, as well as retrospectively, and this then feeds into Xero as an expense claim. 

                                                  Online Payments

With the end of the tax year looming now is a great time for sole traders to think about switching over to cloud accounting (for limited companies I'd recommend switching at the start of your next financial year).  

I am able to offer a free months trial to see if Xero is beneficial to you and your business.  Packages start from £9 per month, with the most popular package being £20 per month, excluding payroll, which is an additional £5 per month for the first 5 employees, each additional employee thereafter is £1.  All prices exclude VAT.

For further information please visit the Xero Website, or contact me on cheryl@chaccountancy.co.uk or 07766 464164.

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