In Part 2 of our Overview of Cloud Accounting we look at Add-On’s
What are they, what do they do and how can you use them to your advantage?
Put simply, Add-On’s are additional software tools that you can add to your Xero Cloud Accountancy System which help you to manage your business in a way that saves you time and money.
There are over 600 of them available – so you really need to find an Accountant who knows and understands them and can recommend which ones are going to add the most value to your business.
Add-On’s mainly help with business needs such Managing Payments, Invoicing, Expenses, Debtor Tracking, Time Tracking, Customer Relationship Management, eCommerce, Payroll & HR and Reporting.
In this article we will give an overview of our Top 3 Add-On’s:
1. Receipt Bank
It’s a game changer – we love this software! Each and every client we take care of is set up on receipt bank. It’s a paperless solution for managing your receipts and expenses which significantly reduces hours of data processing each month. No more keeping paper receipts in a shoebox and saving them up until you see your Accountant!
How It Works: Receipt bank can be for a single user or a multiple number of users. You submit your receipts by taking a photo with the mobile app or by emailing or uploading them from a computer.
The clever software extracts the relevant information on the receipt so that you don’t have any data entry and the data then appears in your Receipt Bank account. Your Accountant will still need to reconcile it – but the software makes it a quick and easy task compared to manually inputting receipt data.
If you want to be extra whizzy you can set up Receipt Bank so that it pushes your receipt information automatically into Xero so that your Accountant can make quick work of bank reconciliations and sales and expenses. You’ll end up with a seamless Accounts Payable process. Then you can pull reports as and when you need them.
Our Advice: Find an Accountant who really understands your business and the Add-On’s that are available so that they can advise you. Also take the time to set up your Xero and Add-On systems correctly from day one as it will save you tons of time (and money) in the long run. As we said at the start, we love Receipt Bank and highly recommend it.
Makes taking card payments simple and easy. Whether you are a sole trader or a shop with multiple staff, iZettle allows everyone to take payments – even on the go.
iZettle offer many product versions to suit various needs so it’s important that you talk to your Accountant about which ones would work best for your business. The packages range from a card reader for when you are on the road to a whole point of sale package, including tills, receipt printer and card reader. As long as you have a bank account you will be good to go.
How It Works: Once you’ve taken a payment the money goes into your bank account a couple of days later (due to processing) and it links directly to Xero which makes it super easy to reconcile. The cost is dependant upon the product you choose and a processing fee is charged per transaction.
Make sure you get the right iZettle product to suit your business & get it linked up to your Xero account to make things even simpler and easier to manage.
Helps you proactively manage your Cash flow. If you want to plan for the future of your business then this is the tool for you. You can use the tool to make sensible financial decisions – whether to buy a new printer now or wait a month – whether to hire another member of staff now or in 3 months time – this tool will show you the impact of those decisions on your cash flow.
How it Works: Float integrates seamlessly with Xero giving you a better understanding of your future finances and helping you make decisions with confidence. It has a really clear and simple to understand dashboard – we find it really user friendly with great graphics. So as an example, if the cash in your bank is looking low towards the end of the month, you can use this Float to understand why and then be able to act accordingly.
Our Advice: We think this Add-On is essential to anyone who wants to manage their business proactively and be on the front-foot. Make sure you get quality training on the tool so that you can maximise it’s potential.
If you’d like to know more about Xero or Add-On’s (& Claim 6 months FREE Receipt Bank) or if you’re interested in working with us then please give Wayne a call on 01264 314220 or 07825 751642 or pop an email to firstname.lastname@example.org
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