Cash is king and most small businesses fail due to lack of cashflow. Even if you have a relatively small business you can use accounting software like Xero to:
- Add a link to your invoices for clients to pay by card using Stripe, Paypal, or similar
- Plug a small (usually free) card reader (Zettle, Square, or similar) into your phone for clients to pay by card before you leave site
In spite of doing all the right accounting entries and knowing how to do a cashflow forecast, like many small business owners, I still use my bank account to manage my cash.
My business model is pretty simple and I bank with one of the challenger banks that make it very easy to have savings spaces for everything; tax, VAT, buffer to cover overheads, next dividend etc.
Often it’s the simple systems that work best so let’s focus on practical solutions.
Cloud is now old hat. Even before the Corona Virus caused many of us to work from home most modern businesses were going paperless and using cloud based software*
So what software do we use with most of our clients?
- Receipt bank – to get your data into Xero as simply as taking a photo or forwarding an email. Optical character recognition does the rest
- Xero – to link directly to your bank statements so that your accounts are as up to date as possible for those important business decisions and loan applications
- Xavier – which helps us to check the quality of bookkeeping. We use it to check our own bookkeeping and for the few clients who insist on doing their own.
- Fluidly or Futrli – to keep track of cashflow which is so vital at the moment
- Clarity – to help you improve your business through tracing 7 key indicators.
While the software in our tech tool box does the heavy lifting we can then help you to CHANGE your numbers with our free monthly Money Matters webinars and our online Flyby review sessions. We might recommend other software depending if we think that it will make your business run more efficiently and help you to create more profit for the hours that you put into your business.
*If you’re not already using cloud based software then we can help you to migrate. If for some reason you don’t want to use the software that we like then we’ll be happy to introduce you to accountant colleagues who use other software