If you’ve not yet made the switch to Xero yet, read on to discover the many time-saving features Xero has that will help you prepare your bookkeeping more efficiently.
1. Bank feed
The bank feed feature in Xero allows you to pull your bank transactions from your online bank account straight into Xero. This will happen automatically once you have put your credentials in for the first time.
This saves time either on manually typing in these transactions or on downloading, formatting and uploading transactions from your online bank account.
2. Machine learning
Xero has a really clever feature whereby it ‘learns’ where to post certain transactions based on past transactions. For instance, if you have a direct debit that is paid to the same supplier each month, Xero will remember where you posted this transaction last month and suggest you post it to the same place. You can, of course, choose not to if it is for something different.
3. Cash Coding
This feature allows you to reconcile multiple transactions at the same time. It sorts all your bank transactions into a long list which you can then sort by supplier. You are then able to select all the transactions that will need posting to the same code, and type in just one of those transactions the coding detail, hit reconcile and voila, all the transactions will have been posted with the same coding details as the one transaction you typed in.
4. Bank rules
With this feature, you can set up ‘rules’ for different transactions. These will then automatically post according to the parameters you have set within the rule. Again, this can be overwritten if needs be, but it saves a great deal of time for transactions such as phone bills, utility bills etc.
5. Storing invoices
This may not sound much like a time-saving feature, however, it can save a lot of time when your accountant is looking at your records at your period end and wanting further information. Generally, when this happens your accountant will contact you and request copies of invoices, if these are stored in Xero, then it could save a lot of time sorting through old invoices trying to find the correct one.
Xero also has a mobile app that you can use to upload expenses while you’re out and about, no more having to save small receipts, just take a picture and Xero will store this document for you. You are also able to reconcile the bank from this app, so if you have a commute to work this could be the perfect opportunity to utilise this lost time.
We love Xero and can vouch first hand for all the benefits it can bring to your business. If this is something you are interested in exploring further, then please do give us a call on 01872 300232 or email us at hello@hivebusiness.co.uk.
