Start up Business Series: Bookkeeping
Date: 10/10/19 | Author: Sean Toomer
By bookkeeping, we mean how you’re going to look after the numbers day in, day out, and how this data (the numbers) and the system you use to keep track of them feeds a vital role in planning and business growth.
First of all, use Xero. Plain and simple.
Xero is cloud accounting Software. If you want your business to work smarter, faster and save loads time, cloud accounting software is for you. Working in the cloud gives you a better overview of your business, in real-time, and improves collaboration with your team.
What is the cloud?
No, your accounts are not in the sky!
Think about when you use internet banking. Every time you access this data, you’re using the cloud. The cloud is a platform to make data and software accessible online anytime, anywhere, from any device. Your hard drive is no longer the central hub.
Accounting Software is a thing of the past
Desktop based software is now obsolete. Software like Sage, which requires a hell of a lot of data entry, time & effort, and accounting expertise to work properly, just doesn’t fit in our new modern world.
It only works on one computer, usually by one person only. It’s costly, annoying & expensive to install updates, and on top of that, you need an expensive customer support package if it goes wrong.
Why cloud-based accounting software is a necessity
You can use cloud-based software from any device with an internet connection. Online accounting means small business owners stay connected to their data and their accountants. The software can integrate with a whole ecosystem of add-ons. It’s scalable, cost effective and easy to use.
In the cloud, there’s no need to install and run applications over a desktop computer. Instead, you pay for the software by monthly subscription, which includes customer support.
Cloud security is world class
As a small business owner, you might be concerned about a cloud service provider storing your data. But the cloud is one of the most secure ways to store information. For example, using cloud software, if your laptop is stolen, no one can access your data unless they have a login to the online account. With cloud software, this is where the data lives – as opposed to on your hard drive.
In the event of a natural disaster or fire, being in the cloud means business productivity doesn’t need to be affected because there’s no downtime. All of your information is safely and securely stored off site. As long as you have access to any computer or mobile device connected to the internet, you’re back up and running.
In addition to this, if you invite users to view your data, you can control the level of access. This is much more secure than the old-fashioned way of emailing your files or sending out a USB stick with your data on it.
Cloud-based software companies ensure that the security and privacy of data about you and your organisation is always airtight. If you use online banking, then you’re already primed to use cloud accounting.
Which cloud accounting software should I use?
We always recommend Xero. In their words, it’s the world’s most beautiful accounting software.
We are not affiliated with, or earn any money from Xero, but we’ve attached ourselves to it, and include it in all of our packages because it’s the market leader. It’s the easiest to use, most user friendly and versatile and has the most third-party applications to add to it, meaning it’s even easier to run your business more efficiently through Xero.
Top reasons for using Xero:
- Bank feed – which means bank transactions are imported seamlessly, reducing data entry
- Accounts in real-time – meaning you can make financial decisions with ease
- Access from anywhere – work from the office, home, or even the gym
- Get paid faster – by being able to invoice direct to the customer, on-site and chase payments
- Cheap – no more annual renewals or expensive customer support packages
What else can Xero do?
Xero also links to literally thousands of apps which will help automate your accounts function and general business processes.
You can use Xero to link to your till system, which will then automatically feed Sales data to Xero - meaning your don’t have to.
You can use Xero to link to a direct debit system (like GoCardless), and track, automatically when customers have paid, and who haven’t (and then remind them automatically too).
You can use Xero to link to stock management software, which can then automatically re-order from supplier when stock levels hit a certain point.
What to do now?
Book yourself onto one of our Xero Training Workshops which serves as a great introduction to Xero. See our events page here.
Don’t forget, look out for our next blog in the series: Support
If you missed our previous blog in the series, Structure, take a look here.
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