Xero is a powerful accounting tool for small and medium businesses, making bookkeeping, invoicing, payroll, and financial reporting seamless. But many businesses only scratch the surface of what Xero can do. By optimising how you use Xero, you can improve efficiency, gain better financial insights, and reduce admin time, allowing you to focus on running and growing your business.
At Ingham Mora, we’re Xero specialists, and we love helping businesses like yours unlock their full potential. We even offer free Xero training to make sure you’re getting the most from your software.
Why Xero?
Xero is more than just bookkeeping software—it’s a game-changer for businesses. If you’re not yet using Xero or haven’t fully explored its possibilities, below are six key benefits.
- Real-time financial data: Get access to up-to-date business insights.
- Automated bank feeds: Transactions sync directly with your accounts, reducing manual data entry.
- Seamless invoicing: Send invoices, track payments, and automate reminders to get paid faster.
- Easy GST and tax compliance: Prepare and file GST returns quickly and accurately.
- Integrations with other apps: Connect Xero to job management, e-commerce, and payroll software to streamline your operations.
- Easy access: Xero is cloud-based, allowing you to access your finances from any device, anywhere, anytime.
- Single Ledger: Your accountant can prepare your Annual Financial Statements directly in your Xero ledger, decreasing double handling and improving accuracy.
But, how do you take your Xero experience from good to great? Let’s explore some practical ways to optimise your Xero setup.
6 Tips for maximum Xero efficiency
Are you getting the most out of Xero? Let’s get you set up for success.
1. Set up bank feeds and reconcile regularly
One of Xero’s biggest time-saving features is automatic bank feeds, allowing transactions to flow directly from your bank into Xero.
- Ensure your business bank accounts are linked to Xero for automatic transaction importing.
- Reconcile transactions frequently, ideally weekly, to keep records up to date and avoid a backlog.
- Use bank rules to automate categorisation for recurring transactions like subscriptions or loan repayments.
2. Customise your chart of accounts
A well-structured chart of accounts makes reporting and tax time much easier. Many businesses stick with Xero’s default settings, but customising these can be a game-changer.
- Create specific income and expense categories to suit your business.
- Set up tracking categories (e.g., departments, locations, or project-based tracking) to get more detailed insights into your finances.
- Use account codes consistently to maintain accurate reporting.
3. Master Xero invoicing
Late payments can hurt your cash flow, but Xero makes invoicing much easier and effective.
- Send invoices electronically, allowing clients to view and pay online instantly.
- Set up automatic follow-ups for overdue invoices, reducing the need for manual chasing.
- Link to online payment services to give your clients more ways to pay.
- Brand your invoices professionally and include clear payment terms.
4. Automate payroll and employee payments
Payroll doesn’t have to be a headache. Xero can streamline the process and save you time.
- Set up employee details correctly to ensure accurate payroll calculations.
- Automate pay runs to save time and reduce errors.
- Track leave balances and entitlements automatically.
- Lodge PAYE directly with Inland Revenue (IRD) for compliance.
5. Integrate Xero with other business tools
Xero connects with hundreds of third-party apps that can help streamline your operations:
- Job Management: Tools like Tradify or Fergus are great for businesses to manage quotes, jobs, and invoicing.
- E-commerce: Connect with Shopify or WooCommerce to automate online sales records.
- Receipts – Tools like Dext and Hubdoc help businesses keep track of expenses more efficiently.
Integrating Xero with these apps creates a seamless workflow and reduces double-handling of data. Find out more about smart tools and apps our team loves
6. Use financial reports to gain business insights
Xero’s reporting tools provide valuable financial insights. Key reports to check regularly include:
- Profit & Loss Statement: Understand your revenue, expenses, and profitability.
- Balance Sheet: Get a snapshot of your assets, liabilities, and equity.
- Cash Flow Report: Keep an eye on your incoming and outgoing cash.
- Aged Receivables & Payables: See who owes you money and what bills need paying.
7. Talk to an accountant that prepares your Financial Statements in Xero
Once you have your daily accounts function working well in Xero, you will find it a game-changer to have your annual reports prepared in the same ledger.
- You will no longer need ‘accountant’s journals’ entered to your accounting software each year to align your software with your accountant’s.
- Annual GST adjustments flow seamlessly into your next GST return.
- You can be confident that your accounting software is up to date and there is a single source of truth.
Customising these reports to suit your business needs will give you greater visibility over your finances.
Xero training and support from Ingham Mora
Xero can feel overwhelming if you’re not familiar with its range of capabilities. That’s where we come in.
At Ingham Mora, we specialise in helping businesses make the most of Xero. Our free Xero training sessions provide practical tips and insights to help you optimise your accounting processes. Whether you’re a beginner or an experienced user looking to increase your skills, we can help.
Our services include:
- Xero setup and customisation: We tailor Xero to suit your business needs.
- Training and support: Learn how to use Xero efficiently with our expert guidance.
- Ongoing advisory: We help you interpret your financial reports and plan for growth.
- Tax and compliance assistance: Stay on top of GST, payroll, and tax obligations.
Not sure whether you’re using Xero to its full potential? Let’s change that.
Ready to optimise Xero for your business?
Xero is a powerful tool, but using it effectively is key to saving time and improving financial management. Whether it’s automating invoicing, streamlining payroll, or leveraging integrations, there are countless ways to optimise Xero for your business.
Want expert guidance? Join one of our free Xero training sessions or book a consultation with our team. Let’s make Xero work smarter for your business.
Reach out today to learn more about how we can help.