What is Xero Bookkeeping?

Bookkeeping has evolved over the years. It no longer is just about recording business transactions and keeping track of your finances. There are various financial aspects that come under the umbrella of bookkeeping nowadays. From payroll to invoicing to reconciling bank accounts, bookkeeping covers a lot of ground. Managing it can be difficult even for an experienced bookkeeper. This is where the need for bookkeeping or accounting software arises. Xero is an accounting software program that has taken over older accounting platforms like MYOB. In a very short span of time, this accounting software has established itself as the best in the business when it comes to providing bookkeeping services for small businesses.

Features of Xero Bookkeeping

Xero is well-known for its easy-to-understand interface and amazing array of features. It makes doing bookkeeping an easier proposition for everyone. Much of the work that Xero does is automated. You just have to give the software access to your bank accounts and it is going to reconcile them automatically. In addition to its bookkeeping services, Xero offers various additional features like payroll, invoicing and managing the accounts receivables and payables. These extra features are available as add-ons. However, you would have to pay extra for them.

Advantages of Xero Bookkeeping

Xero is a cloud-based accounting platform. So, you can access it from anywhere in the world on any device. You just need to have an internet connection and you can access your Xero account without encountering any difficulty. Xero creates detailed financial reports which can give you an idea of where your money is going. You can use the financial reports it offers to make key decisions regarding your company’s future. In spite of being so advantageous, Xero isn’t that expensive. The subscription packages of this software are designed to cater to the needs of different types of businesses.

Shoebox Bookkeeping is a trusted name in the Australian online bookkeeping industry. Give us a call if you want to know more about Xero bookkeeping.

What Does Bookkeeping Entail?

Bookkeeping is an essential component of doing business these days. Without it, you would find it hard to avoid penalties come tax season. So, if you want to ensure that your business prospers and doesn’t get into trouble with the tax department then you should hire a bookkeeper as soon as possible. There are various tasks that fall under the umbrella of Bookkeeping services. Let’s take a brief look at them.

Recording of Financial Transactions

Bookkeepers deal with the recording and maintenance of all the financial transactions made by the business. This includes preserving receipts for sales and purchases made during a set period of time. It is the job of the bookkeeper to track down all the receipts and record them in a systematic manner. This data collection done by the bookkeeper is going to help in the development of financial statements later on. Moreover, aside from the receipts, there are other transactions that need to be recorded as well. For instance, payments made to vendors, loan repayments, bills and other operational expenses all need to be recorded by the bookkeeper.

Balancing the Books

Balancing the books is another important aspect of bookkeeping. It requires the bookkeeper ensuring that the assets of the company always come out to be equal to the liabilities and the business’s equity. In order to balance the books, the bookkeeper generally has to check and recheck all of the financial transactions multiple times over. They also need to keep an eye on the different cash accounts of the business and make sure that the accounts don’t show any kind of discrepancy.

Creating Financial Statements

Bookkeeping also involves the creation of financial statements. These are created by entering all of the data that has been collected by recording different financial transactions. These financial statements are needed by the accountant for creating financial reports for business management. Each financial statement focuses on a specific aspect of the business’s finances. For instance, there would be separate financial statements for revenue earned, cash flow and expenses. Some bookkeepers use the help of computer software for the preparation of these financial statements.

Shoebox Bookkeeping is a provider of online bookkeeping services in Sydney businesses. If you are looking for a trust-worthy bookkeeping service then we can help you out.

Bookkeeping 101

The financial aspect of a business is hugely important for its success. You can have a nice business idea but without the proper financial know-how of doing business, it won’t amount to anything. Similarly, if you don’t stay on top of your finances, you would run your business into the ground pretty soon. This is why it is essential that you take the financial side of your business seriously. You need to make sure that all your books are balanced and a record of all the business transactions is meticulously maintained. All of this comes under the umbrella of bookkeeping. Without it, you won’t be able to run your business for long.

What Does Bookkeeping Entail?

Bookkeeping is mainly concerned with the recording of data. It calls for keeping a record of all the business transactions no matter how small or big they are. You have to make sure that the data is documented in a proper manner so that it can be presented whenever needed. Moreover, it also includes storing tabs on the payments that you have to receive from other clients as well as those that you have to make to others. Bookkeeping also encompasses the creation of simplistic financial reports too. These reports include information regarding the current balance in your different accounts and details of all the expenses and income that the business is making. MYOB, XERO and QuickBooks Online are common accounting softwares utilised by small and medium businesses.

Why is Bookkeeping Important?

There are severe financial consequences for not paying attention to bookkeeping. For instance, when it comes time for you to file your tax returns, you would need to have a record of all the transactions available to you. If you haven’t done it throughout the year, you would end up having to do it in a hurry,making lots of mistakes along the way. This could result in penalties and you might end up losing out on tax refunds that you are eligible for. Moreover, you need bookkeeping to know about the current financial standing of your business and whether or not it’s headed in the right direction.

Is Hiring a Bookkeeper Necessary?

Most business owners don’t have the time or the expertise to do their books themselves. Therefore, it is best that you hire an expert that can do this job for you. There are bookkeeping services available that can help you in balancing your books for a small fee. You can also hire a full-time bookkeeper to handle your finances too.

Shoebox Bookkeeping provides quality bookkeeping services to businesses all over Australia. Feel free to contact us if you need help in balancing your books.