We appreciate that some of these common mistakes may be more relevant to some than others.
With varying degrees of support provided by us to clients whereby some do their bookkeeping themselves and some we do it all for them; take from this document what you find useful and relevant.
In order to maximise the benefits of Xero; whether you maintain the bookkeeping or we do, is to ensure that the bank feed is working within the software.
With Open Banking now being here this should be easier than ever, but it might also mean some changes if you are already connected.
Maintaining the bank
One of the most common mistakes we find are where clients add or delete transactions manually through the bank after a live bank feed has been setup.
It should be rare; if ever, where any manual intervention is needed when your bank has been connected correctly so if you suspect that some amendments are needed please get in touch with us first.
When posting any wages related payments; being payments to staff, HMRC, pension companies etc do not post these against the profit and loss account. These should always be posted against balance sheet codes which will typically be labelled ‘P.A.Y.E., National Insurance and Net wages’.
If the mileage route is being adopted rather than posting fuel be sure not to post both. If you are posting mileage, we would recommend that you explore the various apps that could help with recording this; one of which you can access through our Company App and there is also MileIQ that we use internally.
Getting more out of Xero
- To better monitor the credit position of your customers we have a separate piece of software that plugs into Xero and will generate automated e-mails that will be sent to you when the credit rating of any of your customers change.
- The time taken and impact of people paying late can be catastrophic to clients so there is also a tool that automates; whilst still personalising, the chasing process to give you a much better chance of clients paying on time or even early.
- We all get sick of those cold calls offering to reduce our utility bills down but wouldn’t it be nice for this to automatically be monitored and you get the results, savings and potential courses of action directly without being hounded? We have a piece of software that allows for this to happen.
- Cash is often the main reason why most businesses struggle so why not take advantage of the wealth of information at your hands now that you are utilising Xero fully to more closely monitor and manage this. You can even build in scenarios to test the financial impact of certain actions to develop a proactive rather than a reactive approach with maximise options at your disposal.
- In terms of options and say; for example, access to financial resources where you cash flow might be stretched; we have the facility to plug in; alongside Xero, a function that can take your data to market to then present financial options before there are even needs to give you the best chance to smooth any cash flow concerns before they even arise.
Driving the business forward
- There is now; potentially more than ever, so much relevant, reliable and timely information right at your fingertips. We can draw out the key points which require action aside from those areas mentioned above. This can come through in a neat but regular and concise news feed to you so that you have an overview at any point of time and are better positioned than ever to drive your business forward alongside us.
- Want more than this again? Why not start building and incorporating forecast, key performance indicators and even e-mail notifications being sent to you so that you never been more in control of where your business is, what you’re doing and where it is going.
As ever if you are unsure as to any of the above points or ever in doubt please do get in touch prior to making any entries then we can advise.