Xero And Cloud-Based Bookkeeping Services – A Perfect Partner For Businesses
Generally, your eCommerce business will live or die based on how you manage your cash flow. Whether you sell products through BigCommerce, Shopify, Amazon, or Etsy, you need a sound accounting system to manage your finances.
By now, as an eCommerce business owner, you would know how important proper bookkeeping is for your eCommerce business. It will get complicated, especially when you expand your business and don’t have in-depth knowledge or experience of bookkeeping terms and principles. This is where cloud-based financial bookkeeping software comes into play.
Cloud accounting solution for businesses:
Cloud accounting allows all the accounting and bookkeeping tasks to be done online and securely stores all the data on the cloud. One of the significant benefits of it is that you can get real-time access to all your business information at any time and anywhere.
There is numerous cloud-based accounting software available with their benefits. However, most of them are expensive and involve a steep learning curve. This can result in tight budgets for small businesses, making choosing the right accounting software essential.
This brings Xero into play. Xero is a cloud-based accounting software specially designed, considering mainly small businesses.
A short overview of Xero accounting software:
The motto of Xero – is Beautiful Accounting, and they live up to it. Xero is loaded with several intuitive features following the simple goal of making small businesses successful. Let’s glance at some key elements which address almost all accounting and bookkeeping needs.
- Bank connections and reconciliations – Xero allows you to set up automatic feeds from multiple banks and bank accounts. With this, bank transactions will flow automatically, securely and reliably into Xero accurately every business day. Further, reconciliations can be done quickly with the help of coding suggestions. It even allows the grouping of similar transactions and matching them instantly.
- Inventory management – Managing inventory cannot be easier than this. Xero provides the real-time log of the bestselling product and the profit you have made with just a click. Moreover, it also helps track the stock levels and values daily. The highly accurate input comes in handy to help you while making business purchases and pricing decisions.
- Purchase orders and paying bills – Xero helps set up the complete purchase order process with the comprehensive audit trail. It is quick and straightforward to convert the purchase order into a statement whenever required. Moreover, the purchase dashboard with the inbuilt charts and graphs provides a complete overview of the pending bills and purchase orders that helps you to stay on top of all the business expenses.
- Payroll management – Xero is equipped with a robust Payroll app that aids with everything required to track working hours, manage leaves, and process payments. It also enables the employees to view their payslips, apply for leave effortlessly and submit the timesheets.
- Customized professional invoices – Xero has some of the best templates that can be conveniently customized with company branding. Setting up automated invoice reminders is brisk. These online invoices can be replicated efficiently, thus reducing the repetitive work. It will also be protected with the two-step authentication process to protect the documents from unauthorized changes. In addition, sending online invoices will help in getting faster pay.
- Xero dashboard gives you an up-to-date picture of the cash flow and business finances. Since it can be visualized with charts or graphs, it will make it easier to understand the insights.
The 4 financial reports that every seller can obtain with proper bookkeeping:
- Balance sheet – This allows you to analyze the business efficiently. It includes anything you convert into cash within a year, such as accounts receivable, prepaid expenses, inventory, etc. It also consists of fixed assets you will not sell quickly to raise cash. The report also contains the short and long-term liabilities for your convenience.
- Profit and loss report – This report is also called an income statement. It indicates the business’s financial performance over a few months or a year. It can be used to know the trends, monitor specific KPIs, and predict the company’s future performance. Especially you can review your profit or loss report to identify trends like sales, seasonality, overspending across specific categories of expenses, spikes, and many more.
- Cash flow forecast – This report will be like the business’s crystal ball. It helps predict cash surpluses or shortages before they may happen, so you will not get into a critical situation.
- Inventory forecast – It is the process of gauging the future sales volume based on recent and predicted sales trends. The inventory forecast report will consider all the SKUs, seasonality, and sales velocity. It allows you to decide how much inventory you should order within the given time, what products to collect, and when to call them.
About cloud-based financial bookkeeping services at Free Cash Flow:
Free Cash Flow is a multifaceted team with 20 years of experience. We have rich experience in Accounting, Taxation, Finance, and Bookkeeping. Our qualified and experienced team has collaborated with numerous big and small firms. We provide a complete range of cloud-based bookkeeping services and accounting solutions for all businesses.
Especially if you are an entrepreneur with an online presence and intend to keep an accurate set of books at the end of the business day, we are here to help you. We assist business people with the best accounting software like Quickbooks and Xero to automate everything. We ensure that there are on top of all the accounting tasks and maintain an excellent inventory to track all the essential cash flow easily.
Whether you run a small, medium, or large industry, and are eager to outsource your bookkeeping and accounting requirements to a qualified and experienced team at a reasonable cost, reach us to make the daily bookkeeping and accounting tasks more accessible. The result will be instant access to high-quality bookkeeping and accounting information, enabling you to improve your business and financial decisions.
The primary need for every business is to have a clear understanding of their business’s financial health so that they can easily spot the problem areas before it gets out of their control or identify new growth opportunities. Hence, we design the best solutions for each business, considering each client’s unique financial requirement and analysis.
The bottom line:
When you are ready to outsource accounting and bookkeeping, why not consider cloud-based financial bookkeeping? With Xero, you will know that you have the right tool to manage the business’s finances and cash flow efficiently. Ultimately, it will set you up for increased business growth and generate more revenue. To know more about our services and how we can help you grow your business, contact us today and discuss your specific requirements for the best solution.