How to Avoid Making These Mistakes When Using Xero
At first, you may make a couple of mistakes using Xero if you are not used to it. Having awareness of certain mistakes can make a huge difference in avoiding falling into the same traps in the future.
Our experience of working with business owners over the past 15 years has led us to notice some frequent mistakes that are rather easily avoidable.
There are several common ones:
The company lacks Standard Operating Procedures
In order to scale your business in the future, you need to have SOPs, no matter how small it is now.
We often see clients without a financial standard operating procedure that outlines specific duties and when they are to be completed. Furthermore, they don't create a step-by-step process for getting things done.
The team can establish an action plan for certain scenarios, such as late payments, and prepare standard responses that can be sent by a designated team member.
The accounts of all business banks and credit cards are not linked
All bank accounts and credit cards dedicated to your business should be connected to Xero. Your sales and expenses will never be missed when you generate reports with this powerful cloud accounting software.
Keeping your personal and business accounts separate is another helpful reminder. Additionally, you will be able to make sound business plans based on the real financial situation of your company, making your accountant and bookkeeper happy.
Not customising Xero's Chart of Accounts
A Chart of Accounts tool in Xero provides a complete listing of assets, liabilities, revenue, expenses, and equity in your general ledger.
People don't realize that this is highly customisable and that you can even modify or create new identification codes for these accounts. Creating a separate account can help you track costs for paid social media ads separate from overall marketing expenses.
Receipt management is not automated
Businesses also make the mistake of not organizing receipts in a systematic way.
In our experience as small business accountants in Dubai, working with hundreds of clients can be very time-consuming. At Zyla accountants we use Dext to avoid the hassle of losing receipts.
Get in touch with a Dubai Xero Certified Accountant
Accounting software can be powerful, but using it correctly can be a challenge.
Working with experienced Xero partners ensures you make the most of Xero's features.
Cloud accountants in Dubai have extensive experience with Xero and can help you avoid costly mistakes.
Define your future and grow your business – get in touch with Suzy Kerton at Zyla Accountants today to get started.