It’s no secret that small and medium enterprises face many challenges when it comes to financial management. However, there are solutions available that simplify the accounting processes involved in running an SME.
With modern technology, tools such as cloud-based accounting can help you manage your finances more effectively! However, powerful tools are only as useful as your knowledge of what they do – and how you can partner with experts to unlock their full potential.
Read on to find out how Xero can assist you in making better business decisions today.
What is Xero?
Xero is cloud-based accounting software that has been designed for easy and intuitive use by all kinds of businesses, no matter their size or industry. The software allows you to record your financial transactions in real-time through a user-friendly interface. It comes with integrated features that will enable you to manage your finances efficiently. This can help SMEs maximize their ROI without worrying about the ins and outs of daily transactions and accounting.
What makes Xero different from other accounting software is its ease of use and low cost. Accounting information can be made accessible anywhere, anytime with the mobile app and desktop modules, making it easier for businesses to make strategic decisions based on real-time data!
Two Keys to Making Better Daily Business Decisions
1. Look Back: Know Your Past Performance
As with all businesses, a sound accounting system can help you monitor the performance of your business daily. You can use Xero to track your company’s sales volume and expenses over time, which would make it easy for you to spot trends that would enable you to increase revenue and decrease costs.
The most critical items you need to have on-hand to analyze your past performance are your Income Statement, Balance Sheet, Cash Flow Statement, and a detailed list of your Expenses.
With these, you can easily compare the performance of your business in different years and months, which would help you make the best decisions for your company’s future growth.
2. Look Forward: Forecast Your Future with Management Accounting
To make good decisions for your company, you have to understand what is happening with your business.
You can identify opportunities such as seasonal fluctuations in sales volume or high costs associated with products which can help you prepare better for future risks and costs.
Marketing and sales forecasts, strategic business plans, and performance tracking can help you make better decisions for your company – these are all achievable with a good accounting system.
4 Ways Xero Can Help SMEs Improve Their Business Decisions
1. Real-time, Accurate Financial Reports Generation
If your business is still operating on manual bookkeeping, you are leaving yourself vulnerable to costly errors in your accounting procedures. Xero generates accurate financial reports by automating the entire documentation process and eliminating data entry and human error.
2. Prepare Management Accounting Reports
You can prepare various reports with Xero, including your Cash Flow Statement, Income Statements, and Balance Sheets. These financial tools will help you protect your company’s future cash flows by comparing historical performance and setting a budget based on past results.
3. Reduce Time in Transaction Processing
Small and medium businesses can probably relate to the constant pressure of completing daily bookkeeping duties in a time-efficient manner.
With Xero, you will be able to manage your financial data more quickly with real-time transactions processing. This would save you valuable time that you can use for other important tasks!
4. Utilize Add-On Apps Built for Your Industry and Unique SME Needs
Xero’s expansive library of add-on apps helps you convert financial data into meaningful information that your business can actually use. By adding third-party apps that range in use-cases from manufacturing to sales forecast, you can be confident that Xero will meet your business needs.
How Fastlane Can Help You Maximize Daily Decisions with Xero
Once you know the benefits of using Xero for your SME’s daily financial needs, you can start to implement Xero in your company. But if you are still worried about the process of adapting your business to Xero’s system, it can be beneficial to partner with a certified Xero Advisor.
At Fastlane, we provide the expertise and time management skills to help you make the most of your daily accounting tasks. We have a team of consultants who are passionate about making businesses profitable in Hong Kong. We are proud to offer high-quality Xero advisory services, including:
- Accounting: Helping you implement your financial data processing responsibilities by setting up your chart of accounts and teaching you how to use Xero’s features in a time-efficient manner.
- Xero Setup and Training: Working with you to set up and customize Xero in your business, such as setting up bank feeds, transactions processing, or training your team on how to use the software effectively.
- Accounting Advisory: Consulting with you to improve your accounting procedures and automate your financial data entry tasks using Xero.
- Xero Implementation and App Integration: Guiding your business through the process of adapting to Xero’s platform and software system. We also offer help with integrating third-party apps into your accounting workflow.
To learn more about how Fastlane can help you expand your business using a cloud-based accounting solution, contact us today! With our highly experienced team of consultants familiar with Xero, we offer both Xero training and advisory services that will help you increase profits in your SME!
Contact our team of experts today by visiting us online.