Tradies AccountantsTradies Bookkeepers

At Sky Accountants, we believe that Xero is the best accounting software package for trades and services business owners because Xero can do everything you need very well. Xero is a cloud-based accounting software and is so user friendly you can access it anytime, anywhere. Xero has a great management reporting feature, integrates with other apps smoothly and is easy to collaborate with users.

If you are setting up your small business in Xero, a new user or have been in Xero for a long time now, Sky Accountants have some helpful tips for you to maximise Xero to your trades and services business advantage.

Xero for small business

Ensure that your chart of accounts is suitable to your business. Do you need more than one revenue account? Do you need residential or commercial revenue accounts or need to separate your sales costs so you have materials and subcontractor costs separated? It is important for tradies to submit a TPAR to the ATO every year.

It’s also good to connect all your bank feeds and not rely on importing data so you can track customer payments daily in Xero. You books will be reconciled and you’ll know the business performance.

You should also use business accounts only. You need to use a business credit card or business debit card – not your personal accounts. If you don’t use cash, Xero can track all your payments through automatic bank feeds and you won’t need cash receipts anymore.

You should open a bank account to keep your super, GST and PAYG accruals in time for BAS time. Ask your bookkeeper to send a weekly report so you can transfer the amount and won’t be surprised at quarter end.

You can connect Xero to a payment gateway such as Go Cardless, Pinch and Stripe which all integrate with Xero and help you collect customer payments with a click of a button. You can send customer invoices with a Pay now functionality to make payments easier for your customers.

It’s also good to connect to Receipt Bank or Hubdoc by downloading the app and taking photos of invoices and receipts which will be stored in the cloud and synced to your Xero. This will reduce data entry time and help you go paperless. You can email supplier invoices to the app so no need to print anything.

Make sure you check your subcontractors ABNs to make sure your records are correct. If they are not, you should not pay GST. They will audit you if you incorrectly claim GST on your TPAR.

You should also get professional advice when setting up payroll in Xero. You need reminders to update payrates every year and make sure your staff are paid correctly, including apprentices.

Focus on your debtors through auto reminders in Xero or a debtor management app. Avoid chasing money by using a robust process that can let you collect cash faster. This will be good for your cash flow.

You also need to keep your Xero account up to date and accurate. Xero updates every 12 hours, syncs with bank accounts and manages business finances. Your payments, invoices and receipts must be regularly reconciled and all information up to date. You want to be prepared for your broker, the ATO or your bank manager anytime and avoid work build up. Catching up with reconciliation can cause costly and time-consuming mistakes. Your Xero should be in shape when you see your accountant. Get an expert bookkeeper to manage your Xero and reconciliations.

Xero is Sky Accountants preferred accounting software. Sky Accountants are a registered BAS agent that provides bookkeeping, accounting, payroll, mortgage and financial planning to tradies. We are tradie accounting and bookkeeping specialists so tradies who need support with Xero can get in touch. We have tradie accounting and tradie bookkeeping packages to help with your accounting and bookkeeping needs. Let us know what you need to learn about Xero.

Tradies AccountantsTradies Bookkeepers

Contact UsContact Us

As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.

You can click here to speak to a businessaccounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

We would love to help you formulate investment strategies and streamline your processes to take your business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.

Ballarat Accountants

Phone: 1300 328 855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Gisborne Accountants | Macedon Ranges Accountants

Phone: 03 97444522

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437

 

 

 

 

 

 

 

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