If you’re just starting out in business, you might be tempted to skip the accounting software and just use an Excel spreadsheet to keep track of your accounts. Maybe you’ve only got two or three clients and not many overheads so it’s all pretty straightforward, but here’s why you might want to reconsider.
We recommend our clients get onto Xero bookkeeping as soon as possible, and to ‘start as they mean to go on’. One of the benefits of working with Dollars + Sense is that we can offer partner rates for Xero, starting at just $10 per month if you’re not registered for GST, and $19 if you are.
The reason that’s so useful, especially if you’re registered for GST, is because you have all of your records in there at the end of the year, so when it’s time for your accountant to pull together your tax return, your year’s bookkeeping is already done, so there’s nothing for you to do.
Give an accountant a spreadsheet at the end of the financial year, and the first thing they’ll do is ask you for all your records and receipts, which are likely to be living in a shoe box on a shelf somewhere. But if you’ve been using Xero, they’re all already in there for you. And assuming you’ve been reconciling your records regularly, that’s all done as well.
Your accountant can then plug your Xero data straight into their system and give you a tax return, which is much quicker and easier — not to mention cheaper — than going through a full financial audit.
We also find that people tend to be more organised when their bank feeds are running through Xero. It gives us the opportunity to keep an eye on everything, and ensure that all the ATO obligations are being met.
It’s a quick and easy win for a very low cost, and we highly recommend making the move to Xero bookkeeping if you haven’t already.
Want help setting up your accounting software? Request a quote and find out how we can help you grow your business.