Xero Health Check: Ensure Your Financial Year Starts Right

Posted 10 Jul '24

Xero Health Check: Ensure Your Financial Year Starts Right

As we head into the new financial year, it's the perfect time to review your Xero file.

Xero is a fantastic business tool and can be easy to navigate, but with so many responsibilities as a business owner, things can slip through the cracks. Errors in Xero can cause issues like double-counting income, unreconciled bank accounts, unexplained expenses, incorrect wage and GST reporting, and superannuation being paid late. These problems make it difficult for you to understand your financial position and plan for cash flow needs.

Our Top 5 Tips to Help You with Your Xero File

1. Do a Little Often: Regularly update and reconcile your Xero file to prevent small errors and keep your records accurate. Use the mobile app to stay on top of transactions and save receipts on the go. This also helps with managing customer payments and cash flow.

2. Keep Bank Accounts for Business Use: Separate personal and business transactions to keep clear and accurate financial records. This ensures no business expenses are missed and income isn’t overstated, saving you time on reconciliation.

3. Use Bank Rules: Set up bank rules to automate transactions, saving time and reducing errors.

4. Check Your Invoice Settings: Make sure your invoice settings are correct. Use templates and ensure payment terms and methods are clear.

5. Automatic Superannuation: Available in certain plans. If your payroll setup is correct, paying superannuation at the end of each quarter can be as easy as clicking a button.

The saying "you don’t know what you don’t know" is true – if you'd like one of our certified Xero advisors to review your Xero file or to gain some tips on maximising Xero, contact us today. 

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