Have you heard the joke about the bookkeeper who used online accounting software? Not us either. What we have heard though, are what small business owners have been saying about their experiences using their accounting software. From less stress and more free time, through to being paid on time and having on the spot access to finances, there are plenty of wins to take notice of.
But what if you’ve never used online accounting software before? Should you be concerned about needing to learn how to use it, the cost or the security of your information in the cloud? Nope.
Online accounting software is a tool which helps business owners increase their bottom dollar by putting them back in control of their finances. And yes, it’s perfect for you too.
What Are the Benefits of Using Online Accounting Software?
Sabrina runs her own business from home while being the stay at home Mum she’s always wanted to be. What started off as a hobby business 16 months ago, has quickly turned into an incredibly busy business. With orders heading out the door on a regular basis, Sabrina knew she had two options: find someone to help make her products or find someone to do her bookwork and admin.
Well, considering her love of making products, she understandably chose to keep doing that. This was also based upon her dislike of doing the accounts, how using a spreadsheet for her accounts was getting messy, mistakes were being made and she was the unfortunate recipient of a large tax bill at the end of the financial year.
A business networking group Sabrina was in, suggested that she engage the services of a bookkeeper: one who could help her manage her finances using online accounting software. Sabrina learnt about us by word of mouth and then got in touch to learn more about our bookkeeping services. She particularly wanted us to set her up with an online accounting system that would:
- Streamline her accounts
- Allow her to work from anywhere
- Make doing her accounts easy
- Would provide easy access for her accountant completing the end of year accounts
After an initial discussion, we identified that Xero would be the best option for her. The benefits for Sabrina using Xero as her online accounting software included:
- Collaboration – Xero allows her to work together with us and her accountant, in real-time.
- Connectivity and Convenience – Sabrina can access her financial information from anywhere. This means she can sit in the car, while waiting for her children, and check for customer payments.
- Control – one of Sabrina’s favourite features is the visibility over her finances. Without any effort, she can see what invoices and bills she has outstanding and adjust her budget for the next month accordingly.
- Cashflow – one of Sabrina’s biggest issues with doing her accounts on a spreadsheet was the lack of insights and tools. With Xero, she can focus on looking after her customers better, rather than worrying about money.
- Invoicing – Xero’s inbuilt invoicing tool allows Sabrina an easy way to invoice her customers. With the ability to connect credit card payments to her invoices, she found she was getting paid a lot faster!
Since Sabrina came to us and moved from a spreadsheet to Xero, her accounts are no longer a nightmare. She loves how easy it is to create an invoice and how easy it is for her customers to pay her. Sabrina still hates doing her bank reconciliation and GST which is fine, because we do that for her!
How Can Accounting Software Increase My Business Profits?
Did you know that it takes, on average, 9.4 days for someone to pay your invoice? This can have a negative impact on your cash flow! The good news is though, when using online accounting software which has an invoicing feature, you can significantly speed this up. That’s because, when you choose the right software, you can:
- Quickly identify who has and hasn’t paid their bills – no more hunting through spreadsheets!
- Set up and send automatic reminders for non-payers – no more wasting time emailing and calling late payers, Xero does it for you.
- Avoid miscalculations and costly errors – unless you put the wrong numbers in, you won’t have to worry about incorrect calculations and nasty surprise tax bills. When you choose us to input those numbers for you, then that won’t be a problem either – and you get your time back too.
- Improve the cash flow of your business – a timely sent invoice will receive timely payment. Xero’s invoicing system is easy and quick to use after each job or product is ready to be invoiced. No need to wait for a large batch to make it worthwhile.
Xero is a fantastic tool that makes your accounting easy and almost enjoyable. With a couple of changes to how you handle your invoicing, you can enjoy getting paid faster. We recommend that you use Xero to:
- Invoice immediately once you have finished the job or the product is ready
- Ask for prompt payment – the 20th of the month following may be traditional, but there’s nothing wrong with using a 7-day payment system.
- Make the invoice easy to pay – your bank details are included on your invoice, as well as it being able to sync with PayPal to accept credit card payments too.
- Set up automatic reminders – in Xero, you can set up automatic invoice reminders. This has changed the way we do credit control (that’s chasing payments). Online invoicing makes it easier to track and reconcile payments against invoices. Not only does that save time, it makes knowing who hasn’t paid so much easier.
The next question then is, who should be using online accounting software? Let’s find out.
Is Online Accounting Software the Right Choice for My Business?
First up, let us ask you a few questions:
- Are you ready to reduce your admin burden and get back on track?
- Do you run a business by yourself, or with minimal employees?
- Can your business cash flow support a small regular monthly payment?
- Do you need to free up more of your time to concentrate on growing your business?
As mentioned earlier, we feel the benefits of using accounting software are immense. Suitable for one-person businesses like Sabrina’s, through to those with multiple employees and large turnovers, Xero not only makes doing the books easy, but it also saves you time and money. As a business owner, who doesn’t need that?
Here at InDeed We Can, our speciality is in helping give our clients back their time, their sanity and their love of their business. One of the ways we do this is through our professional bookkeeping service.
*Name has been changed for privacy reasons
Heather, our bookkeeping specialist with over 20 years of experience in the industry, helps manage the financial books of a range of business types. From clients ranging from tradies to construction teams, professional service based and eCommerce businesses, there’s nothing she can’t handle.
We’d love to hear from you, dive into sorting your books out and make being a business owner fun for you once more.