Many business owners use a spreadsheet or desktop package to do their bookkeeping but we think they should stop and switch to an online bookkeeping package such as www.Xero.com and here are ten reasons why.
- Get to know your financials
A set of management accounts is possible with a spreadsheet but it’s not easy. Xero gives you this and much more such as the ability to run a monthly comparison of profit and loss and then drill down on the results.
This is important because all major decisions should be based on sound financial information not just gut feel or what’s in the bank.
- Budgeting
If you want to track actual costs vs budgeted costs, to keep control of the business, and plan for the future its nearly impossible on a spreadsheet and difficult on most desktop packages. Xero makes it easy to set budgets and then track actuals. It has a number of in built reports to check monthly variance. One you have done this it is easy to share this info with anyone who needs it.
- VAT Returns
VAT is possible on a spreadsheet but time consuming and its easy to make mistakes. Also when you use a spreadsheet for VAT, VAT becomes the purpose for recording the transactions but with Xero the VAT is the by-product not the reason. The reason is financial control. Further time is saved because Xero links directly to HMRC so returns can be filed and stored directly form the software.
- Save time on Data Entry
In theory a spreadsheet should be faster as it’s a straightforward data entry tool but Xero pips this because bank data is fed directly into it and, in many cases it is automatically matched. Xero also pips desktop software which, in general, lack these latest features.
- Improved cashflow
We all know the importance of cash to a business so its important to know who owes you what and when, when you use a spreadsheet it’s difficult to see who owes you money, with Xero it’s easy. You can also send all of your customer’s statements in seconds which makes credit control a breeze.
- Invoicing
There is often duplication in your processes, for example, you may invoice in a word processing package and then duplicate your effort by enter all of these details onto your bookkeeping spreadsheet or desktop package. In Xero you raise the invoices from within the software and email them directly to the customers. What’s more you can include a paylink on the invoice to allow them to pay them online via paypal or other payment gateways.
- Customer Data
Xero allows you to keep a record of your customer’s names, addresses and other data, which you can access wherever you have an internet connection.
- Mobility – Xero has a mobile phone app that will allow you to access your data on the go. For example Xero will allow you to raise invoices from you mobile phone and email them directly to your customers. This can be helpful if you are off-site and want to raise an invoice in a hurry.
- Collaboration
let your accountant, bookkeeper and any other interested partner access your books so they can help you run your business. This is virtually impossible with a desktop software and or a spreadsheet but with the cloud any interested party you provide access to, such as your accountant, can log on and help you run your business.
- Outsource
because you can collaborate you can now outsource with confidence.
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So there you have it if you want all these benefits of a proper bookkeeping system plus the added benefits of being the cloud you should definitely check out www.xero.com or similar.
If you are using a spreadsheet and want to grow your business its time to ditch it. If you are using desktop software now is the time for a Xero demo.
