Xero Simplicity
Tradies' like Xero.
Ask around, you will find it's the bookkeeping software of choice.
I suggest simplicity may be why. Xero's tag line is beautiful business. Beauty and simplicity have always gone hand-in-hand. I'm very interested in keeping Xero simple and optimizing it to help small businesses grow. I've found applying an action model called PDCA helps me achieve this. PDCA stands for Plan – Do – Check – Adjust.
When I apply PDCA to Xero it looks like:
Planning with xero
We start with a conversation and I learn about your business:
your vision – where you want to go
your systems – how you operate currently
your pain points – what areas of admin and accounts you find frustrating, and
your capability – software and bookkeeping knowledge.
Doing on xero
I structure Xero to suit. Structure encourages simplicity and improvement which are great for business.
sales - easy invoicing and quoting out of Xero onsite or from the office.
decisions - using Xero reports for financial decision making
reconciling - coding off transactions weekly with as much automation as possible.
Checking of xero
Monthly or bi-monthly to ensure quality and compliance. Things to check include:
bank reconciliation report(s) – these ensure a match between Xero and your bank
coding – especially assets and grey areas such as clothing and entertainment
GST - cue the audit report and watch assets and overseas purchases for accuracy.
supplier statements - load bills in Xero using Hubdocs and checking time is halved
credit control - invoice reminders and effective conversations.
Adjusting with xero
The icing on the cake. Implement simple improvements that optimize your business.
designing product/service items – to standardize invoices and quotes
billable expense systems – to on-charge some costs
setting up credit control functions – progress payments and knowledge of supplier process.
creating bank rules - and other AI for transaction coding.
When all is said and and done, I'm a big supporter of starting simple and then adjusting Xero to suit your business over time. This can result in optimized operations and reduced admin. That's simple bookkeeping and beautiful business.