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As the daffodils emerge from the ground, it's not just our homes and gardens that could benefit from a spring clean. Your business's financial health could also use a fresh perspective to flourish.
Enter the 10-point independent review of your Xero bookkeeping system – a game-changer in saving money, improving efficiency, and working smarter.
1-Make sure all bank accounts and credit cards are linked to bank feeds. Manually entering statements line by line is not a good use of your time when the bank feeds are reliable and quick. Set up bank rules to further speed up automatic postings.
2 - Look at apps available to link with your software. Hubdoc is a free software to collate, read and post purchase receipts into your system. Make sure that you attach receipts to as many expenses as possible to make sure you can justify VAT claims or deductions for tax. Can you integrate an app for your website sales or to make payments easier?
3 - Review your aged debtors. If any small debts are not recoverable, write them off to claim the tax deduction and VAT reclaim. Set up some nice templates for debt chasing so that you can send statements regularly at the click of a button. Speeding up your cashflow into the business.
4 - Ensure everything is posted accurately and consistently. Generate an accounts transactions report from the reports menus and review to ensure everything is posted correctly. Avoid messy headings such as "general expenses, office expenses or sundry expenses". Try to be specific and consistent so your accountant can make sure everything is accurate.
5 - Make sure there are no incorrect purchase invoices sitting on your system as unpaid. Perhaps you paid them from your personal account or they are duplicated on the system. Ensure to tie up loose ends so reports are reliable.
6 -Ensure control accounts for PAYE, tax and pensions are correct and payments have been posted accurately.
7 - Generate reports that are meaningful to you. Profit and loss accounts on invoice basis or cash basis are very useful. Perhaps you can compare this quarter to last year and see your business growth?
8 - Look at your VAT payments in the last year or so, perhaps you would be better off on a flat rate VAT scheme? You can always ask an accountant for advice if needed.
9 - Consider the new analytic tools to forecast your business cashflow for the future. Are there periods will be tight for cash that you can try to put plans in place now to solve in advance?
10- Review your profit and take a estimate computation of 19%/20%/25% to preempt your tax bills for the year. Planning ahead will help remove the worry over tax liabilities.
Giving your system a spring clean can help nip problems in the bud and tighten up your system to be more useful and productive for you.
If you would like help from a professional to review your system you can always get in touch with us. We would be delighted to book your system into our work list for a 10 point check and a report back to you with our findings.
Spring Check- ups from the Butlers team are £125 + VAT for the 2024 Spring months.
Give our office a call to discuss it further with our team -01268 773108