It is often said that (almost) no one goes into business to do their own bookkeeping. So it’s no surprise that many entrepreneurs rely heavily on a trusted advisor for support, especially during busy times like EOFY when it comes to tax, compliance, payroll and other business obligations.
For those on the Xero platform, collaborating with your bookkeeper or accountant is easy through the cloud. But, there are also many tools and tricks you can learn to a) impress your advisor and b) make your life and theirs easier before tax time. Below is a summary of four features that will help you save time and increase efficiency in the coming weeks (and throughout the year). Which Xero tip would you add to this list? Let us know in the comments section.
Complete bank accounts faster with automatic updates
As any small business owner knows, Bank reconciliation (The process of confirming all transactions in your bank accounts are recorded in your business accounting records) is one of those tasks that should stay on top of you. why As tax time approaches, tracking down unreconciled transactions from months ago can sometimes be like looking for a needle in a haystack.
To make things easier, we’ve added an automatic update to your bank account just in time for EOFY. Now when you complete the transaction details in the ‘Create’ tab, Xero will populate similar transactions with the same information – without refreshing your screen. This means you can connect multiple records faster, while minimizing errors in manual data entry.
Store tax time records in one central file library
Xero file library There’s room to store everything you need for EOFY, like receipts, bank statements, rental summaries, and even important emails. Under “Files” you will find folders called “Inbox” and “Contracts”. You can upload files directly or email them directly to your inbox, and while you’re at it, it’s a good idea to create a tax-time specific folder (eg EOFY 2023).
Make sure your advisor knows you’re using the file library so they can find and share documents too. Keeping everything in one central place saves you from going back and forth via email and losing important notes within the chain (we’ve all been there).
Note to self: Track contacts with a free text field
From working with customers and suppliers to vendors and advisors, it’s easy to lose track of action items, IOUs, follow-ups and all sorts of details – especially when it comes to tying up loose ends in June. So why not replace mental notes with real ones – no, not pen and paper; We’re talking about the free text field under Contacts. Next time you’re in Xero, click on a name in the Contacts tab and add any relevant information – like when you asked your supplier for a statement. This will help you keep track of what you’ve requested or what’s left to do before EOFY.
Use the global search feature to find any missing puzzles
Xero’s ‘Global Search’ now features a new and improved search bar, dropdown menu and filter icon. Moreover, we have upgraded his abilities to get more hits. It includes an “All” option in the filter menu and a new look on the search results page with columns for easier navigation. So if you’re looking for the final pieces of your year-end puzzle, Global Search can help you match words in invoices and purchase descriptions without running accounts.
Whether you’re a seasoned tax-time pro or just learning the ropes, we’ve got all kinds of resources and hacks to help you along the way. Visit Xero’s EOFY Resource Center To learn more, and while you’re there, be sure to sign up for our upcoming webinar: Prepare your business for the end of the financial year.