22.06.2020

Online Business Accounting with Xero

Taking control of your accounting shouldn't be complicated. Xero manages invoices, syncs with e-commerce platforms and allows for custom API solutions.

The importance of good accounting

Accounting (done well) allows stakeholders of your business, whether it be owners, investors, or managers, to accurately evaluate your financial performance. This should include an account of all the financial details, such as profit and loss, cost and earnings, assets and liabilities.

For a small business, this is crucial. Say you want to start selling cakes through Facebook. Although your business is small, you still need to monitor your cashflow, ensuring you don’t run dry, and understand all the costs involved in the business. These will include fixed costs, which remain the same regardless of your business’ activity. For a small cake business, this might be the cost of renting a commercial kitchen and salaries. You also need to consider variable costs, which fluctuate with the sales you make. In this case, cake ingredients, electricity bills and cleaning supplies would all be examples of variable costs.

You can see from this how your different outgoings and incomes can quickly become complex and require constant management. All the fixed and variable costs need to be kept track of in order to ensure your business is actually making money. You need to be able to have both an overview of the whole business and keep track of individual invoices, sales, and outgoings.

Xero is a revolutionary accounting software which allows you do to this more efficiently. It will chase overdue invoices, expenses can be logged in the app and the whole system is cloud-based, meaning you can access up to date information from anywhere.

 

Direct invoicing with Xero

Xero allows you to get paid instantly. The online invoices sent to your customers include a ‘pay now’ option. These invoices can then be paid directly, by debit or credit card or through PayPal or Stripe.

You can also set up repeat invoices, which means Xero will automatically generate, save and send out online invoices to your regular customers. This means less for you to remember and more time to focus on the wider business strategy and big decisions.

The Xero app allows users to send invoices directly from their phone or tablet, meaning you can get invoices sent on location at a job, therefore reducing the risk of an invoice being missed.

Learn more about Xero’s invoicing capabilities here: Invoicing with Xero

 

How Xero can work for e-commerce

Xero offers apps for 28 different e-commerce platforms, including those for retail, tourism, not-for-profit and manufacturing industries.

Seamless e-commerce accounting for retail

There are Xero apps on offer for all the major e-commerce website platforms, including Woocommerce, Shopify, Rocketspark, Airsquare, Big Commerce, as well as 15 others. You can view the full list here: Xero compatible e-commerce platforms.

Sync your store seamlessly with your accounting system, with up to date inventory tracking and account records. You can export your paid orders as sales invoices and your store’s past orders will be synced daily and added to Xero as paid invoices.

All product, shipping and tax information will be sent to Xero automatically. This allows you to keep track of your finances with up to date information, taking another burden off your shoulders.

Synchronising booking systems with Xero

Xero is able to sync with a wide range of booking systems, offering a variety of benefits to different industries.

If you own a business in the leisure industry, Xero can be synced to booking management systems, such as Checkfront and Intellibook. These flexible integration apps allow you to seamlessly manage customer and supplier invoices, track different sales categories and automatically import customer payments reconciled with Xero.

For businesses in hospitality, tourism and activities using e-commerce booking systems, Xero offers a fully integrated and synchronised way to manage your accounting for complex booking procedures.

 

Xero’s Custom Solutions

If your business has a unique configuration, Xero allows for custom connections using flexible API to create accounting solutions for any kind of business. This means that no matter what your industry, there is the complete flexibility of configuring you Xero plug in to suit.

If you would like to know more about Xero’s online accounting solutions, Tim Taylor & Co. are certified Silver Partners of Xero.

 

Get in touch to have a chat.

Call Tim Taylor free on 01792 363444 or email tim@ttaccountants.co.uk