5 tips to get the most out of your MYOB or Xero software
Accounting software these days can be pretty damn efficient!
As much potential that your software has, it’s normally only as good as the person driving it. Even the best software needs its driver to have some skill and understanding to ensure it creates the most accurate and efficient outcome!
Getting the most out of your Accounting software can be simple. Here we’ll share 5 simple ways to make your business more efficient, more compliant and help you get a better picture of how it is performing.
- Use the built-in filing systems to store invoices and receipts
Did you know that both MYOB and Xero have electronic filing cabinets built into their software?
In MYOB it’s called “in Tray”, in Xero, it’s called “Files”.
What’s better is that they are included in the cost of the subscription, so it would be silly not to make the most of them.
What’s better again is that if you implement this software in your business, the supporting documents will be attached to the expenses in your file. This means there will be no more annoying questions from us every time we need to see an invoice for something – we can just grab the info we need directly from your file.
It also means you’ll have a centralized database where all your financial information is kept, accessible from anywhere you can access the internet.
- Accept online payments to get paid quicker
Cash in the bank is the key to running a successful small business.
According to Xero, one in five of the businesses that use their software have activated online payments. They find that the customers that use online payments get paid 30% faster than the ones that don’t.
Online payments allow your customer to click “pay now” straight from the invoice you email them and process the payment immediately, without processing a manual transfer through their online banking.
Another huge benefit is that it allows the customer to pay immediately using their credit card.
Online payments attract transactions fees, similarly to how an eftpos facility would, and these rates vary depending on the service you are using, so just be wary of these.
However, if you struggle to get paid on time, or regularly have customers ask if you accept credit card payments, turning online payments on in your software may mean cash in your bank quicker and easier.
- Create rules for bank transactions
Ever fill up at the same servo every week, or buy your materials from the same supplier?
Yep, so do most business owners!
To streamline the data entry process, make sure you use the ‘bank rule’ features in both MYOB and Xero so that recurring transactions are automatically allocated.
- Set up automatic invoice reminders
There is nothing worse than slow paying customers!
To ensure you are following up your late payers regularly and efficiently, set up automatic invoice reminders.
This means as soon as the invoice remains unpaid for a specific amount of time, your software will automatically send the customer a reminder.
Of course, you can set up the reminder rules as you wish, for instance if you don’t want to reminders sent to particular customers, or you wish to give some longer than others.
- Implement a month-end process and utilize your reports
Believe it or not, by the time you process all of the transactions in your file, the software has the ability to tell you some pretty interesting stuff about your business.
Good businesses will review the performance of their business on a monthly basis at a minimum. We’d recommend implementing processes where at the end of each month you finalize your transaction processing, complete any relevant reconciliations, and then review a standard set of reports.
What you review would depend on what you want to know, but we’d recommend starting with an actual vs budget report for the month, and also a cash flow summary to assess whether your cash is increasing or decreasing.
The important thing to remember is that what ever you want to know, there is a good chance the software will be able to tell you.