How Xero Can Help You Prepare For Tax Time

Tax season tends to creep up on us so it is best to be prepared. With that said tax time definitely isn’t the ordeal that it used to be. With the introduction of cloud based accounting software, in recent years, the process has simplified greatly. Staying on top of your finances has never been easier with Xero. 

Accounting software such as Xero is designed to do the majority of the groundwork for you. This makes it much easier for your Bookkeeper to get your books ready for your tax returns that are completed by your Tax Agent. For this reason cloud accounting is becoming increasingly popular amongst business owners. Here is how Xero can help you prepare for tax time.

Invoicing 

Online accounting software allows you to send online invoices instantly from an app on your phone, in real time, as soon as the job is done. You also have the ability to set automated reminders to give customers an extra nudge and see the payment status all within the mobile app. All your invoices can be found within the Xero accounting system and be collated at tax time for a simplified return. 

Recover Expenses From Customers

You have the ability to assign expenses to specific customers or categories as you put it within the software. Expenses are automatically added to a customer’s next invoice to ensure your business is reimbursed. 

Go Paperless

Not only are you saving time and better preparing your business for tax time but you are also doing your bit for the environment. Going paperless means no more paper trail or filling. Recording everything online keeps everything simple, easy to record, claim and find.

Xero Expenses 

Xero expenses works alongside Xero accounting to provide a seamless user experience. It has all of the tools that businesses need to effectively manage and track their expenses. Xero expenses helps to prepare you for tax time by:

Snapping And Scanning Receipts 

This allows you to capture costs in real time, from your phone, whilst keeping everyone within your business updated. These expenses are all stored within the Xero accounting software and can be reconciled with your bank transactions. When you scan your receipts it automates data entry from the information on the receipts. 

Track Mileage

The map within Xero helps to accurately track and submit mileage claims on the go. Therefore there is no need to log trips within a log book saving time throughout the year. All your mileage information accrued throughout the year can be easily accessed in preparation for tax time.

Smart Reconciliation

Save time having to manually enter data with reconciliation. Every step of the expense management process can be automated with Xero expenses. Linking bank accounts and credit cards allows you to reconcile your finances.

Monitor Spending

Xero accounting software offers real time analytics that can be used to make quick and informed decisions in regards to spending. This assists with data flow and cash flow within your business. You have the ability to view all of your current expense claims as well as your reports.

Payroll

The single touch payroll that is available, through Xero, simplifies compliance with the ATO. It can be automated so that paying employees only takes a few clicks. Payslips are also emailed directly to employees saving time and paper. 

There is also a self service option for employees to access, submit hours and request leave. This reduces payroll administration saving your business time and money in the long run. Single touch payroll, through Xero accounting software, allows your business to effectively prepare for tax time.

From invoicing on the go to offering single touch payroll services, Xero accounting software has plenty of features to help you prepare for tax time. Not only does Xero provide you with more control over your business finances it also organises them perfectly in preparation for tax time. 

To get the optimum service out of this accounting software it is recommended that you complete Xero training with a highly skilled professional such as Liz at Keeping Numbers. This will provide you with peace of mind that you have the best process possible in the lead up to tax time. Contact Liz at Keeping numbers for more information about training in Xero and the courses offered.

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