One of the not so nice tasks when running a business is the book keeping. When you’re an SME, this makes it more difficult in terms of the time it takes up and if you don’t like book keeping you can get someone else to do it at a cost.
Whether you like it or not, bookkeeping is an integral part of the business and an important one too. Not just because you need to comply with the tax laws in place, it’s critical information that lets you know how the business is going and what decisions your should make to make your business profitable.
One of the accounting software we’ve been using for the last two years is Xero. The software from our experience has done wonders because of a number of reasons. The first reason is the ease of using the program. It is so easy, any book keeper will have little trouble entering the necessary data. Like any new program, it takes a while to get a hang of the program but once the basics are grasped, it’s so easy.
The second reason we like about it is that it is a cloud based system. That is, it’s near paperless and the program is accessible via the internet. This means the program which holds your data is accessible anywhere, anytime.
The setting up takes a little bit of time but not overly technical or complicated. With the help of your accountant (although not necessary), the first step is to create your accounts including your assets, liabilities, expenses and revenue. Once you set this up, entering data or transactions is a breeze. And when you’ve entered the data, the third feature we like about Xero is the ease of printing reports like Cashflow statements, profit and loss statements and so on.
Even more exciting about Xero is the programs ability to accept bank feeds into the program. By accepting bank feeds, you can actually do your bank reconciliations online saving you time to go through your bank statements. You will need to have access to internet banking to enable this feature. Are PNG bank accounts eligible under this feature – of course, and we’re using this great feature.
The other fantastic feature about Xero is the monthly reports and in particular preparing GST reconciliations to prepare your monthly GST liabilities. Provided the settings are correct, doing your GST reconciliations is so much easier.
The program does the necessary calculations so calculators is less used and there is more accuracy.
The program in our view won’t replace accountants because at the end of the year, we still have to provide the necessary information to the accountant to prepare the financial statements.
But the program certainly makes bookkeeping much easier and more paperless.
You can give it a go and you’re best starting off with someone who has accounting knowledge.
Here’s the link www.xero.com