Ambitious businesses have been hindered for generations by traditional accounting and bookkeeping practices. This has usually meant collecting and storing receipts and invoices in drawers and folders (or even carrier bags and shoe boxes) and then manually entering them on to documents and spreadsheets.
These old school techniques have swallowed up years of time, both for business owners and their accountants.
At last there is an alternative and it’s called cloud accounting. It brings big benefits for business owners who can now spend less time on boring admin and more time on doing the exciting things that they love most in their business.
It also means that their accountants spend less time on entering data and reconciling accounts and more time helping their clients look forward and plan strategically for the future. By embracing technology a good accountant should then have the time to assist companies to become more efficient and profitable through a greater understanding of their finances. Business owners and their accountant should then work together to put in place targets such as KPI’s to measure their businesses performance.
So what is automated accounting?
Cloud accounting makes use of online platforms and software such as Xero that connect to your data, which is stored securely and safely in the cloud.
If you use Internet banking then you’re already using the cloud to manage your finances. It’s safer than relying on storing information on a PC’s hard drive, where it can become infected by viruses, attacked by hackers or corrupted.
Data stored in the cloud can be accessed at anytime from anywhere in the world by the client or their accountant using a PC, smartphone or tablet, and millions are invested in keeping it secure.
Dropbox and Google documents are two other examples of ways in which many people already store data, images and information in the cloud without worry or hassle.
The benefits to businesses of using Xero and Receipt Bank
Xero and Receipt Bank are user-friendly tools that give businesses the power to automate invoicing, eliminate errors and inefficiencies and get real-time updates on their finances. It’s easier than ever before for companies to see the route to growth ahead of them.
These are award-winning, tried and trusted pieces of software that work together in harmony and can link directly to a business bank account – saving time and removing the risks of human error.
Xero will automatically pull data through from your bank account, recognise payments received and match them to invoices raised. It integrates seamlessly with Receipt Bank, which allows the smallest receipt to be photographed on a smartphone, uploaded and then forgotten about. How often have you worried about saving and finding receipts – especially those little ones for food and drink and small items that easily go astray – when you are busy or talking to clients?
Receipt Bank can also quickly and easily scan in larger batches of invoices, it will pick up all of the supplier details so there is no need to manually enter invoices. The invoice is then saved on Xero accounting software storing electronic copies of your invoices. This is approved by HMRC so businesses can genuinely become paperless.
Xero also integrates with Paypal and eBay meaning that invoices and payments from these platforms can also be automated saving precious time and money.
One of the key benefits to automating your accounting function is freeing up the time of your accountant. They can give you a more in-depth analysis of the financial health of your business, and work in partnership with you as an expert advisor. Together you can grow your company to meet all your objectives and goals.
At Burnell & Co we make both Xero and Receipt Bank available free of charge to all our clients. We believe they can help make the day-to-day running of any business smoother, safer and trouble-free.
Telephone us on 0121 794 4009, or email us at firstname.lastname@example.org for more information on how cloud accounting with Xero and Receipt Bank could give you greater freedom and the opportunity to have a more successful, efficient and effective business.