Webinar Summary: An Introduction to Cloud-Based Bookkeeping | reconynge
As all business owners will know, bookkeeping is the process of recording all financial transactions made by a business. Traditionally this was all done by hand, but modern technology has meant that this can all be done much more simplistically using computer software. Even more recently, cloud-based systems have developed, which makes managing accounts even easier.
This week we ran our second ever webinar looking at cloud-based bookkeeping and the software Xero. You can watch the recording of the webinar here or, alternatively, keep reading for a summary of what was discussed.
What is cloud-based bookkeeping?
Cloud-based accounting software is based in the “cloud” rather than installed on your desktop or manually maintained in ledgers and journals. The software for cloud accounting is hosted on a remote server instead of a server on your business premises.
What are the benefits of cloud-based bookkeeping?
Work from anywhere with an internet connection
Information is secure
Multiple users and set permissions
Introduction to Xero
What is Xero?
Xero is a cloud-based accounting software platform for small- and medium-sized businesses. It was founded in 2006 in New Zealand, and is one of the fastest-growing ‘software as a service’ companies globally. They lead the New Zealand, Australian, and United Kingdom cloud accounting markets, employing a world-class team of more than 3,500+ people. Forbes identified Xero as the World’s Most Innovative Growth Company in 2014 and 2015.
How Xero works
Xero gives you a way of accounting that swaps the traditional paper-based bookkeeping for an online service that can be accessed 24/7 from anywhere with an internet connection. The software provides a real-time overview of your cash flow at any time, the ability to create and monitor invoices easily, and a simple bank reconciliation function, amongst so many other features!
Why do we use Xero?
Xero can ensure your books are done faster with automations - Xero can automatically handle tasks that used to take up all of your time. From importing bank transactions to sending invoice reminders, it’ll do the work for you.
Feel confident in the numbers - With all the data stored safely and in one place, it’s easy to get a snapshot of how your business is tracking. As we mentioned before, you can also invite your accountant or bookkeeper into Xero so they’ll ensure you meet all your tax obligations.
Useful integrations - We are able to look after staff with Xero Payroll and drive profitability on projects with Xero Projects. It’s fully integrated with Xero so you can keep all your business information in one handy place.
How to use Xero
Xero is one of the best, if not the best, cloud-based bookkeeping software out there - it is very simple and straightforward, making your accounts easy to manage. Here is an introductory video that explains simply how to use the Xero dashboard, so you can get a feel for how clear this software is.
Getting started with Xero
New to online bookkeeping
Add your bank accounts and opening balances to get set up with a new Xero organisation.
Create invoices and send them to your customers to get paid quickly.
Add more users to your organisation if you want to.
Reconcile your bank account
Try out other features
If you already use online bookkeeping
It’s very easy to switch your accounting over to Xero, but we recommend following Xero’s 3 steps on switching:
1. Register free with Movemybooks
Sign in or register with Movemybooks, then complete the step-by-step instructions to extract your Sage, Quickbooks or Kashflow backup file.
2. Sign up for a Xero account
If you don't have one already, you'll need to sign up for a Xero account - either a trial or a paid account is fine.
3. Authorise and Xero in
Click 'Authorise' in Movemybooks to connect to Xero. Check you are sending data to the correct company and follow the simple steps.
Seth’s top tips for using Xero to manage your accounts
Start as you mean to go on - Think about what you actually need/want. Creators of Xero reimagined how to do bookkeeping, whereas other software just moved the process online. Could start from scratch and just use the features you need rather than transferring data over, depending on what you need Xero for.
Keep it simple - Xero is a powerful tool that can become complicated if you’re not careful. One way to keep things simple is to make sure that you choose a bank with automatic uploads to Xero, rather than manually downloading and uploading each file.
Think about expenses - You don’t want to end up with lots of pieces of paper, such as card receipts, so try to find a way to streamline your expense process. You can try getting a prepaid company card that automatically puts all expenses straight into Xero. You can also create an email address specifically for invoices that are automatically forwarded to the Xero software ‘Hubdoc’, which will process invoices for you.
Avoid duplication where possible - Many companies end up repeating tasks unnecessarily, such as an accountant processing payroll and then manually inputting it into Xero after, but Xero can do it for you! Make use of all the automations and integrations that are on offer - this will save you valuable time.
We hope that you have found this webinar and blog useful, and now feel ready to embrace the world of cloud-based bookkeeping, or even better the world of Xero!
For more information about the bookkeeping services we offer at reconynge, please contact us here: www.reconynge.uk