Getting Started with Cloud Accounting and Xero: Three Things to Know

Financial and business information plays a vital role in the management of businesses.

It is used for numerous day-to-day operations:

  • To comply with accounts, tax, PAYE and VAT obligations
  • To tell us about levels of cash, income, costs, debt and monies owing
  • To track income and expenditure from products, services and project.

A cloud-based accounting system like Xero helps you to manage your financial information and run your business more efficiently and cost-effectively. 

The many benefits of cloud systems, like Xero include:

  • Better real-time overview of your current financial position
  • Access for multiple users allows easy conversations/collaboration with members of your team and advisors
  • Spend more time doing things you enjoy, thanks to the automatic updates
  • Everything runs online which cuts out the need for installation, your work is saved and backed up all the time, ensuring you don’t lose anything

Making the move

This can be broken down into three key stages:

1) Prepare

  • Define your expected requirements from the system. For example, tracking categories, reports needed, business systems it will integrate with and the available apps. 
  • Communicate it to everyone in your business and make adequate resources and training available. Choose an appropriate date for migrating, typically this will be at the end of your financial year or a VAT quarter.
  • Create a checklist of the data that you’ll need to enter and import, such as customer and supplier financial and contact information, account headings, bank information and how much accounts history you wish to transfer across. This will also be the ideal time to clear up contact, client and supplier information.

2) Migrate

  • Going live immediately is high risk, so I suggest you run parallel systems for a short period of time. This will help familiarise you with the new system and processes and check the accuracy of your data processing and reports.
  • There are many ways, human and software based that can make the data transition smoother and less costly.
  • If you have no previous systems, maybe because of a star up situation then the migration journey will be less involved.

3) After

  • Once you have migrated onto Xero then it’s important to make sure you get the best from it.  New systems and new ways of working can be quite daunting, so we train and support our clients to deal with it on a build-up basis and share the load with them.
  • You can immediately feel the power of Xero and get comfortable with it by starting to use the customer invoicing and credit control aspects.  The remaining financial information, such as bank and supplier information can be dealt with by a combination of automation and/or getting support from your accountants
  • Finally ensure you maintain and access the new system regularly

Contact us to see how we can help you and your business converting to Xero and all your accounting and tax needs:

Pro Active Resolutions
Your Accounting Solution

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