A Match Made in Heaven

July 4, 2013 · Posted in Accounting, Cloud Accounting, Xero · Comment 

Traditional accounting systems have you enter your data in a ledger format where there is a debit and a credit.  Accountants have done this for hundreds of years; the first evidence of a double-entry bookkeeping system dates to the year 1300 (Source: Wikipedia).

What’s different in Xero is that one side of the debit/credit entry is already handled for you when it comes to banking and credit card transactions.  You have three choices for each transaction:

  • Match
  • Create
  • Transfer

Match

In Xero, you use matching when the transaction has already been entered in Xero, such as an invoice that is awaiting payment or a check you are waiting to clear the bank.  When the transaction comes in via the bank feed, all you have to do is accept the match that Xero presents to you automatically.

The beauty of matching is it’s at least twice as fast as most other accounting systems.  Your bookkeeper will save considerable time.

Create

If there is no matching transaction in Xero, you can choose Create, which will record the new transaction.  In this case, you’ll need to enter the customer or vendor name plus the account that you want the other side of the bank transaction coded to.

For example, if a transaction comes through that is a bank charge or bank draft that is not previously recorded, then you can use create to enter it. In the case of the bank charge, you’ll enter the account Bank Fees and the bank name.

Transfer

The third choice is a transfer.  This is when money is moved from one bank account to another.  All you’ll need to do to record the transaction is to select the bank account.

Look Ma, No Data Entry

These three coding options are at the heart of how Xero saves business owners and bookkeepers so much time.  Since the bank feed side of the transaction is taken care of, all you have to do is code the transaction.

If you keep your books via the accrual basis where you enter your invoices and bills ahead of when they are received or paid, then you will use matching most often.  If you wait for the transaction to hit the bank, which is similar to cash basis bookkeeping, then you will be using the “create” function most often.

Game. Set. Match.

If you haven’t seen this part of Xero, you’re in for a treat.  Give us a call, and we’ll set up your free demo today.

 

Mobile Marvel

May 23, 2013 · Posted in Accounting, Business Tips, Cloud Accounting, Xero · Comment 

It’s common now to get alerts from your bank on your smartphone.  It’s even fairly easy to find a good app where you can take credit card payments from your cell.  But how about the rest of your mobile accounting needs?  Finally, the whole enchilada is here with Xero Touch for the Android, iPhone, and iPad.

Once you have your Xero accounting system in place, you can perform most of the major daily accounting functions from your smartphone.  Xero Touch allows you to enter a four-digit pin so that the login process is easier.  From there you can do the following:

At-a-Glance Balance Summary

You can check your real bank account, PayPal, and credit card balances.  While banks allow you to see your bank balance, this balance does not take into consideration uncleared checks, so the balance can be misleading.  Balances in Xero should be more accurate as long as you are caught up with your accounting.

Invoice Functions

You can create, approve, and send invoices.  One way this feature can be utilized is to have your bookkeeper enter the invoices as drafts in Xero.  Once they are entered, you can review and approve them via your smartphone.  You can also email them directly from your smart phone.

Expense Features

Let’s say that you just used your credit card to make a purchase.  You can take a picture of the receipt and enter it right in Xero Touch so you’ll be up-to-date and paperless.

Reconciling Transactions

What Xero calls reconciling is quite different than what you might be used to.  Much of Xero’s functionality is based around bringing banking data into the system and then either matching it with bills and invoices already entered or coding it to the proper income statement account.  The smartphone app allows you to do matching, coding (which they call creating), transferring between accounts, or adding comments.   These are the same four functions you have available online, and we’ll go into these in more detail in next month’s article.

Contacts

Are you visiting a client and need to make a note?  You can do so right on your cell phone in Xero Touch.

Jazzed About Mobile Accounting?

We know, it might be a bit of a stretch to have the words “jazzed” and “accounting” in the same sentence, but we’re jazzed about Xero Touch and the future of mobile accounting.

It will only get better from here, so be the first to join us for the ride.  Give us a call so we can see if Xero is right for your business.

Xero Free Offer

November 6, 2012 · Posted in Uncategorized, Xero · Comment 

Xero, the online accounting system that is perfect for small businesses, is now available for FREE for 12 months. Here’s how you can take advantage of this offer:

New clients

Anyone who becomes a Wow accountancy client before 21 December 2012 will get Xero FREE for the first 12 months. To take advantage of this offer please call 949 502-4680 and quote ‘Xerocode12’.

Existing Wow clients

If you refer us to a friend who becomes an accounting client before 21 December 2012, then you BOTH get Xero FREE for the next 12 months. We’d love to work with more people like you, so thought we’d give you a little incentive to spread the word about Wow.

 

Call  949 502-4680or reply to this e-mail to get your Xero FREE for 12 months

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