What Are the Benefits of Using Xero for Small Business Accounting for Cairns and Brisbane Tradies?

Are you a tradie looking to move from another accounting software provider to Xero, or moving into self employment and need a new software provider?

A quick overview of some of the benefits of Xero has been provided below.

For a more detailed look into Xero and its benefits please contact us or visit https://www.xero.com/au/.

For trade businesses in Cairns and Brisbane, Xero is a one stop shop for financial administration and is a simpler way to maintain records, monitor cash flow and work with a bookkeeper.

Spend less time entering transactions

One of Xero’s most useful features is its bank feed.

A bank feed is a secure digital link that sends transactions from your business bank account into Xero.

Instead of manually typing transactions from a bank statement, the deposits and withdrawals appear in the accounting file ready to be reviewed and reconciled.

The bookkeeper then matches each imported transaction to the correct invoice, bill, payment or expense category.

This matching process is done in the bank reconciliation and helps confirm that the accounting records agree with the transactions recorded by the bank.

A bank feed does not complete the bookkeeping by itself. Transactions must still be checked and allocated correctly, but it can remove a considerable amount of repetitive data entry.

Get a clearer picture of the business

Keeping Xero current makes it easier to see how the business is performing.

Tradies can monitor income, operating expenses, outstanding customer invoices and bills still to be paid.

This is helpful when managing costs such as materials, subcontractors, wages, vehicles, tools and equipment. It can also help the owner identify financial issues before they become a problem.

Job and project costing can also be managed and checked here by using the functions of Xero to allocate income and expenditure to jobs the business has on the go.

Send invoices without waiting until later

Delaying invoices can mean delaying payment.

Xero allows tradies to create and send invoices from a computer or mobile device, including shortly after completing a job. These can be sent from the job site on a mobile phone.

Businesses can also monitor overdue accounts and use automatic reminders to follow up customers.

This creates a more consistent invoicing process and reduces the chance of completed work being overlooked.

Keep GST and BAS records organised

Xero records GST according to the tax treatment applied to each transaction and provides information used when preparing a Business Activity Statement.

The software can simplify the process, but accuracy still depends on correct setup and ongoing bookkeeping. Bank transactions, invoices and expenses must be reviewed carefully to ensure the resulting reports are reliable.

Work from the same records as your bookkeeper

As a cloud-based platform, Xero allows authorised users to access the same accounting file online.

A tradie in the field and a bookkeeper working elsewhere can both use the current records without exchanging files or maintaining separate spreadsheets.

This helps bookkeeping questions get resolved sooner and gives the business owner access to more useful financial information throughout the year.

Connect the office with the job site

Xero can connect with selected apps used for receipt capture, payments, job management, time tracking and reporting.

The right combination of systems can reduce double handling between the job site and the accounts.

However, each app should solve a genuine problem rather than simply adding another subscription or process.

Make Xero fit the business

Xero works best when it is configured for the way the trade business actually operates.

Bank feeds, GST settings, invoice templates, payroll, expense categories and reports should reflect the business’s day-to-day activities.

At Tropic Books & Finance, we help tradies and small businesses in Cairns, Brisbane and across Queensland set up, maintain and improve their Xero bookkeeping systems.

Trades we regularly help with Xero Bookkeeping

• Electricians and Sparkies

• Plumbers

• Blocklayers & Brickies

• Carpenters and Chippies

• Concreters

• Landscapers

• HVAC and Refrigeration Technicians

• Roofers

• Tilers

• Glaziers

• Painters

• Builders

Speak with Tropic Books & Finance Today

If you're considering moving to Xero or are looking for a new bookkeeper contact Tropic Books & Finance for a no-obligation discussion.

Simon Smyth

Phone: 0427 216 011

Email: simon@tropicbooks.com.au

This article provides general information only and does not constitute accounting, taxation, legal or financial advice. Xero is a registered trademark of Xero Limited. Xero concepts including those trademarked by Xero and Xero Software terminology have been used in preparing this article.