Xero: how can it help your business through the coronavirus pandemic?
This time last year, we were in London for the Xerocon conference, where we learned how to get the best out of the Xero software for our clients. Although there is no equivalent event this year, our Head of Cloud Accounting, Jack Moore, discusses how the platform can help your business through the Covid-19 crisis.
The pandemic has proved that businesses need to adapt to survive. Xero's cloud-based platform means that our clients can submit reports and view important business information in real time without the risk of meeting face-to-face.
With the country in lockdown and workers being advised to work from home if they can, companies need a more effective and remote way of handling their accounts. They also require the utmost clarity about their finances to plan ahead and navigate their business through these uncertain times. Developments in cloud accounting technology mean that you can access your businesses transactions, management accounts and various performance metrics all from the comfort of your own home.
Under Making Tax Digital rules, bookkeeping records must be stored digitally using a program that connects to HMRC. There are a wide variety of programs on offer, but we are proud to be certified advisors of Xero, which is an easy-to-use cloud-accounting platform. Here are some of the benefits of using Xero software:
Make data-informed decisions
Now more than ever, businesses across the UK are making important decisions about their future in response to the coronavirus pandemic. With cloud accounting, there is no need to wait around for data to be sent or received. Xero provides real-time information about your business performance and cash flow, making it much easier to make predictions and plan ahead.
Many businesses keep information about their cash-flow, invoices and other financial documents within spreadsheets located on shared drives within their IT system. Due to the increase in remote working, attacks on company IT systems are on the increase, emphasising the importance for a purpose-built app that is designed with multiple layers of security. One of the issues with locally held data is that if your business computer is stolen or broken, it is likely that your information may be gone forever. Xero backs up your data automatically by securely encrypting it multiple times throughout the day. There are also complex firewall layers which leave your confidential information uncompromised.
Get paid faster
Now more than ever, time is money. Avoid cash-flow problems by ensuring that invoices are paid on time, every time. Xero helps with creating and managing professional invoices and can automate the reminders for outstanding invoices, which means that you will experience fewer delays in recovering payments against your invoices.
Equipped to be proactive, not reactive
Thanks to the real-time information that can be provided by Xero and various other cloud accounting platforms if kept up to date, applying for coronavirus support such as a Bounce-Back Loan is a much faster process. If your accounts aren't always up to date, finding the relevant data for such application processes can be time-consuming and potentially less accurate. Where necessary, Xero can share information with your bank, insurance company or your accountant, meaning your advisors have real-time data to give you advice on.
The business landscape has changed considerably over this last year, forcing companies to react quickly, and rely on faster processing of their financial information to keep ahead of the game. Whether it's sending online invoices, tracking inventory, paying staff or keeping track of expenses and reporting information, cloud accounting provides a faster, more accurate and more secure solution for your business. If you'd like to know more about Xero or other cloud accounting options, our cloud specialists can help you find the right platform for your business. Contact us on 0115 955 5500 or email email@example.com.