Accurate and well kept books are a great way to start running your business. Having a seamless and automated bookkeeping system can help small business owners to manage their accounts efficiently. This involves recording and classifying all the financial transactions within a business. Keeping track of what your business spends and what your business receives.
These were tasks that were traditionally managed using books and ledgers hence the name bookkeeping. With innovations in technology, bookkeeping software such as Xero accounting software has almost completely replaced the need for physical books and has revolutionised the process. Here is why Xero training for business owners can be so beneficial for small to medium sized businesses and an insight to bookkeeping for beginners.
Why Do Businesses Require Bookkeeping?
There are many reasons why businesses should invest in bookkeeping software. From being able to check that your business is actually making money to planning out your budget optimally and completing accurate tax returns.
Having all of your financial information in one place will make it much easier for you to work with other parties including lenders, investors, accountants and even bookkeepers. The beauty of Xero software is that it has the ability to grow with your business, which is why many business owners complete a Xero training course with Liz from Keeping Numbers.
The Optimum Bookkeeping Approach
Recording and reconciliation are the two most important tasks when it comes to small business bookkeeping. We have broken them down below to give you a little insight into what Xero online training, with Liz from Keeping Numbers, has to offer your business. Learning Xero with Liz is an easy way for beginners to become proficient in bookkeeping, which involves step by step modules assisted by an industry expert.
Recording Each Transaction
Recording sales was traditionally done by writing them into a cash book or punching them into a simple spreadsheet. Business owners are now much more likely to download sales data directly from point of sale to their cloud accounting software such as Xero. Every business related purchase should be recorded, as a proof of purchase so that you are able to claim your expenses at tax time. This task can be automated through the Xero software making it very popular amongst business owners.
Reconciling Each Transaction
This is where you cross reference your books against your bank statements to make sure that your transactions match up. Bank reconciliation is done on a regular basis, which is often dependent on the amount of transactions going through your business bank accounts. The more organised you are with reconciling your transactions the sooner you can identify any errors and correct them. To learn more about recording and reconciling your transactions you might like to contact Liz at Keeping Numbers who can guide you through the process.
How Xero Accounting Software Can Assist Your Business
The majority of small business owners use cloud based accounting software such as Xero to speed up jobs and decrease the chance of errors. Xero offers tools that upload transaction data at the point of sale, speeds up reconciliation, allows you to manage your cash flow and provides convenient automation.
There are many ways that Xero cloud based accounting software can improve your business processes. With Liz from Keeping Numbers you are able to train in Xero no matter what level of knowledge you currently have. Contact our friendly team at Keeping Numbers today to enquire about the Xero training that we offer.