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Xero – Top 5 Features you should be using!

Xero – Top 5 Features you should be using!

Top 5 Xero Features

Do you use Xero?

Do you feel you’re not using it to its full capability?

Would you like to save yourself time, stress & hassle?

If so, here are 5 ways in which we believe Xero features can help!

1   BANK FEEDS

Bank feeds link directly to your bank, essentially they just pull through all banking transactions into Xero in real time!

This means you can spend time on the things that matter to you, rather than having the hassle of digging out the statements every month.

ALSO… you can stay on top of your bookkeeping and do it more regularly as there isn’t the chore of having to pull off a weekly bank statement for example.

HOWEVER… there is no need to worry about connecting Xero to your bank as the banks totally support this integration as Xero uses multi factor authentication so it’s unbelievably secure!

 

2   BANK RULES

Bank rules can be set up in SECONDS, however they can save you HOURS or even DAYS in the long run!

In short, bank rules are automatic suggestions of where to code up transactions, meaning you can get the bookkeeping done at the click of a button!

This really does save so much time with transactions that are regular i.e.. Phone bills, rent etc.

The main tip here though, is to make sure you stay on top of bank rules and continue to create new ones as and when you get new payees, as with time your old ones may become useless and the automation would lose its efficiency.

 

3   HUBDOC/DEXT

Hubdoc, Autoentry and Dext are types of software that can be used to process receipts.

They can be set up and integrated with Xero in next to no time! The apps allow you to get all invoices into Xero by taking a simple picture on your phone… WOW !!

This will make processing receipts and invoices much more efficient and stress free as you will then no longer have to keep physical copies of the documents…

ALSO… Under MTD,  HMRC are slowly bringing in the requirement for ALL businesses and individuals to keep their records digitally, so doing this sooner rather than later gets you one step ahead of the game.

 

4   GOCARDLESS

Are you tired of chasing customers for payments?…

Say hello to GoCardless… This nifty little integration with Xero allows you to set up direct debits with customers and the money is taken automatically on the due date. Not only does this improve your cashflow dramatically, it saves you endless amounts of time and stops you wondering when you’ll actually be paid!

GoCardless is the stress-free way of collecting YOUR money!

 

5   HMRC MTD CONNECTION

Sick & tired of forgetting your government gateway log in details every quarter? NO PROBLEM!!

With Xero you can file your VAT returns in seconds all at the click of a button through the MTD connection feature.

All you need to do to set this up is make sure you are signed up for MTD with HMRC and then do a quick one time connection with HMRC by logging in to your account through Xero. This allows you to file VAT returns seamlessly and takes the hassle of them right away!

 

If you’d like more information on how Cloud Accounting and in particular Xero could revolutionize your business  call  Kim on 0161 410 0020 or email [email protected] for a no obligation chat.

After all, “Not all Accountants” are the same“

It is important that you take professional advice before making any decisions based on the information that you learnt here. While every effort has been made to make sure it is accurate it cannot be precisely tailored to your personal circumstances. This article is for general information only and no action should be taken, or refrained from, as a result of this information.  Professional advice should be taken based on specific circumstances in each individual case.  Whilst we endeavour to ensure that the information contained in the article is correct, no liability will be accepted by Krystal Clear Accounting which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction  or decision taken as a result of using any such information.

What are Bank Feeds and how do they work?

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In short, bank feeds create a digital link between your business bank account and your accounting software, such as Xero or QuickBooks.  

This means bank transactions are automatically downloaded into the accounting software. This simple piece of automation, completely removes the need to manually input every bank receipt and payment into the accounting software. 

Having bank feeds in place, saves a HUGE amount of time bookkeeping. That’s because it completely removes the need to manually input bank transactions into the accounting software. 

Saving time bookkeeping isn’t the only benefit for the business…. 

 

 

Xero – Top 5 Features you should be using

What are the main benefits to a business using bank feeds?

  • Saves Time & Money Bookkeeping

Bank feeds automate, what was previously, a time-consuming task of entering all the bank transactions into the accounting software. 

 This saves the business a HUGE amount of time (& money) spent on bookkeeping.  

  • Improves Cash Flow Visibility

With bank transactions being downloaded from the bank every day, it means it’s quicker and easier to keep the bank balance in the accounting software up-to date. 

With the accounting software up-to date, the bank is updated daily which gives you a clearer, real-time view of your business’s cash flow.  

This makes it easier for you to plan your cashflow, and take action to improve it. 

  • Enhanced Accuracy

There is always the risk of errors being made when data is being manually inputted into the accounting system. It is often time-consuming to find and correct any errors. Also, if an error is large then the Profit & loss and Balance Sheet reports will be inaccurate and potentially misleading. 

 Automating the bank transaction entry previously manual process, reduces the risk of errors being made and ensures that the bookkeeping records and reports are accurate. 

How to Link Your Bank to Xero

  • 1. Setup Online Banking:

Ensure that your bank account is set up for online banking. This feature is typically available from all major banks. 

  • 2. Add Bank Account in Xero:

Log into your Xero account and navigate to the banking section. Select ‘Add Bank Account’ and follow the prompts to search for your bank. 

  • 3. Enable Bank Feeds:

After adding your bank account details, you’ll see an option to set up bank feeds. Click ‘Agree’ to the terms, then securely log into your online banking portal through Xero to authorize the connection. 

 

Are Bank Feeds Safe & Secure?

Yes. 

Firstly, having bank feeds in place ONLY means bank transactions are downloaded into the accounting system. They do NOT give anyone else access to the business bank account. 

 Secondly, XERO has various security measures in place to give you a piece of mind that your financial data is safe and secure: 

 

  • Encrypted Connections: Xero uses advanced encryption technology to secure the data transmission from your bank to Xero. This means your sensitive information is encrypted during transit and cannot be intercepted or read by unauthorized parties. 

 

  • Compliance and Standards: Xero adheres to high standards of data security compliance, thus ensuring that its practices meet or exceed industry security standards and regulations. 

 

  • Regular Renewals: To maintain a high level of security, XERO requires that the bank feed connection is renewed every 90 days. This process is straightforward and helps ensure that the integrity of your financial data is always protected. 

 

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KIm Marlor the MD of Krystal Clear Accounting
krystal clear accounting

In Summary

In short, having bank feeds really saves businesses time and money on their bookkeeping.  

 They automate and eliminate what is otherwise a time consuming and error prone manual process.  

 Bank feeds is just one of the ways technology can be used to help business owners improve the financial side of their business.

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