The world of accountancy is changing dramatically! It’s actually quite exciting, and these are hardly terms that you would associate with accountancy.
In the olden days (like two years ago!), clients packaged up their paper records, took a backup of their Sage software or copied their Excel spreadsheets, printed their bank statements and took it all to the accountants. They then waited weeks for the accountants to ‘do the accounts’ and then had a meeting to discuss any queries. The accounts were finalised, the client was sent a fee note and that was it for the year. At Kirkwood Wilson, we have moved into the future of accounting with a system called Xero.
What is the Xero accounting system?
So, what is the Xero accounting system? Xero is a cloud based, digital accounting system, with which you can choose to integrate one of over 500 apps designed to help your business work more efficiently. Now, most of our clients use Xero cloud accounting, meaning that their bank transactions are downloaded in real time from their online banking system. By setting ‘rules’ the Xero software, many of the transactions are automatically processed to the correct accounting code. Sales invoices are raised digitally and are emailed out quickly to customers. Debt collecting becomes an automated process meaning that you collect your cash much quicker!
Receipt Bank allows you to scan or take a picture on your phone of all of your purchase invoices or receipts. These are uploaded to Xero and the VAT calculation and coding is automated. Even better, the invoice sits digitally within your software so that you can always go back and see how much you spent on something. You can also reduce the amount of paperwork you keep!
The advantages of Xero
The advantages of Xero do not stop at ease of use. As your accountants we can also access the system at the same time as you. We can help you and correct any mistakes.
What’s more, we can produce accurate, up to date management accounts. All of your decision making is based on up to date financial information. You can make appropriate tax planning decisions in the clear knowledge of where you stand financially. And because everything is up to date, you will not fall foul of filing deadlines and penalties.
But surely this must cost more? Not necessarily. We cost out the work at the outset and agree the fees for the year with our clients, who then pay monthly. This covers all on going queries and advice. There are no unexpected bills and you know that you can call at any time without incurring any cost.
This is certainly the future of accounting and we encourage you to switch Xero and reap the benefits. If your business needs help in adopting these fantastic ways of working, please ring Dan on 01704 546000 or email.