XeroIs 2017 your year for Clarity? Well maybe Xero and KMA can help?

Are you looking to grow, improve and make more money in 2017? Well maybe XERO and KMA can help?

If 2017 is your year for Clarity, business and profit growth, then like it or not, you are going to need to know your numbers, as Knowing and understanding your numbers is a crucially important part of any business.  As a business owner you really ought to know exactly what’s going on and not just once a year when your annual accounts and tax returns are produced!  There are many ways you can keep track of your accounting records:

  • Manual books are one way
  • As are excel spreadsheets,
  • The best way though is undoubtedly using Accounting Software.

There are plenty of packages on the market to take away the stress of book keeping and keeping on top of those sales invoices, purchase invoices more commonly known as payment receipts and bank statements etc.  There is no absolute one size fits all, using the right program for your business depends on just that – your business! Whether it’s a start up or a rapidly growing and expanding venture you need to find accounting software that works for you and suits your company.

The landscape for accounting software in the UK is changing

Here at KMA Accounting we have a wealth of knowledge of different systems and Accounting packages.  We’ve been looking again recently as the landscape is constantly changing.  “Cloud Accounting” continues to become even more popular.  Over the next few years we predict it will be the number one way for keeping on top of your bookkeeping  and linking your Accounting to many other applications.  It is really hard to do any research on accounting packages without being bombarded with praise for Xero.

What’s so good about Xero?

There are many reasons we and many others like Xero.

  • It takes away some of the tedious aspects of bookkeeping software, turning what I’m sure many of you will consider a chore into a much smoother and easier process.
  • It also give you greater access to your numbers from many locations rather than just on your work or home PC, so whilst you’re away on holiday or at a conference, you can access the numbers and check what has been happening since you were last at the coal face of your business.
  • Also you don’t have to have a degree in bookkeeping to be able to use it, it is quite user friendly.

The figures speak for themselves and may even encourage many Sage users to jump ship. Xero has grown from a mere 200 customers in 2007 to 157,000 by 2013, it took the company five years to gain their first 50,000 customers and only 10 months to have grown by another 50,000. In this financial year Xero now have 475,000 customers worldwide and are the lead providers of cloud accounting in the UK, USA and NZ. Unlike Sage you have none of the issues of your accountant and you being on different versions and paying for upgrades etc.  You pay just one fairly low monthly fee and then all the upgrades and new releases of functionality are done seamlessly.

So why should you use it?

It’s not all about their (Xero) figures; it’s about the impact they’ll have on yours.  Xero offered more than 500 free updates to their products and services last year, helping smaller businesses to increase cash flow and productivity.  

We’ve come up with what we think are the most important and useful features of the service:

  • Connected – Syncing with your bank, your figures are shown in real time, no delays!
  • Reduces the burden and time taken on bookkeeping – you or the accountant can set up rules so some transactions can be automatically reconciled. Giving you more time to do what’s important – managing and developing your business.
  • Unlimited users – business partners or employees can use the service
  • Cloud based – all backed up in cyberspace and safe, not desktop based or easily corruptible
  • Supports multiple platforms – you can access your accounts from anywhere in the world and on any device – even your smart phones!
  • No version disparity you and your accountant are on the very latest version
  • Greater understanding and collaboration – As a business owner you can use Xero to keep track of things but so can your accountant. Allowing access to your account will mean an expert is on hand to help you.

As an owner of a small business, it’s important to understand the benefits of using Xero alongside your accountant. You need to be able to keep track of the profit and loss of your business, incomings and outgoings but these are just numbers on a page if you don’t know what to do with them.  At KMA we have over thirty years’ worth of knowledge and experience of helping business owners understand what the numbers are saying and how to interpret and use them to propel your business forward and hence to increases your profitability.  There are so many areas that can affect your profitability and we’ve likely dealt with them all over the years.

Xero is great for giving accountants the ability to assess and analyse your finances as there are many extra “Add-ons” that enable lots of financial modelling to be done to predict what will happen to the profits of your business under certain circumstances.  This makes Xero and other cloud based Accounting Software very powerful.   KMA are brilliant at offering expert advice on projections, Budgets and forecasts and a multitude of other reporting that come under the term “Management Accounting”.  With their help and knowledge it’s so much easier to understand what needs tweaking like for example your Sales and Marketing, to increase your profits, improve your cash flow management and increase your sales.

The real benefit of using cloud based accountancy software means you and your accountant can monitor and measure the finances at the time and make the improvements instantly that could be the difference between surviving or going out of business.  It makes a refreshing change for most business owners from paper based bookkeeping.

As wonderful as online based software is for managing money, it’s important to remember the art of conversation.  Having someone to talk through your business decisions with will always be more beneficial.  As much as we agree that a product like Xero is reducing the stress of many SME business owners, we think that business advice, a great up to date business plan and the very latest budgets and forecasts are essential to the success of your business.  It would be like setting out on a journey after checking your tyre pressure, oil pressure and taking food with you but having no fuel….you wouldn’t get very far!

If you feel like any of these business issues cover you then get in touch to see how we can help to support you and your entrepreneurial company.

References:

https://xero.com/uk/small-business-guides/cloud-accounting/cloud-accounting-business/ 

https://xero.com/uk/small-business-guides/accounting/when-to-hire-accountant/

https://xero.com/uk/year-in-review/

 

 

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Get in touch

0161 410 0020
info@kmaaccountancy.co.uk

KMA Accountancy
Progress House
17 Cecil Road
Hale
Altrincham
Cheshire WA15 9NZ

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