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“Xero Witch”

Learn to love your numbers

The reason this gives me pleasure is that it means that I have successfully “coerced” a business to move their numbers from antiquated spread sheets to the beauty that is Xero software!

Having achieved the lofty status of Xero Certified Advisor just before the year turned into 2016 ( I apparently get a t-shirt for this ) my resolution for the year is to convert as many businesses as possible over to this brilliant system.

However, the truth is, I didn’t exactly drag my friend Carolyn from Maiden Voyage kicking and screaming to her laptop to sign up but sat beside her giving her reassurance as she set up the system to make it really work for her business!

Guess what; she is delighted and here’s just a few of the reasons why

  • It will save her money, the posting of payments & receipts is much quicker because of the bank feed function which saves entering each transaction, you simply match & post, and with “rules” in place the whole process can take a matter of seconds. Bookkeeping costs will now be negligible.
  • She has control of her business; Carolyn can now pull off profitability reports and assets & liability statements whenever she needs them, safe in the knowledge that everything is entered because it’s all been balanced back to her bank account.
  • She will save on accountant’s fees, as only a few tweaks are required to produce full statutory accounts straight from the system.
  • And it’s secure because it’s in the cloud and won’t be lost even if her 500 year old laptop utters its last keyboard clunk. 

All of which means that Carolyn, armed with sound & timely financial information, can make the right strategic decisions to realise the potential of her already hugely successful business.

Wouldn’t it be wonderful if all businesses of whatever shape and size could be in this position?

And they could be with so many simple to operate but sophisticated accounting packages on the market.

But yet over the last few months, I have come across several businesses of varying hues which are poorly served either by their accounting systems or by their accountants.

As an accountant myself I don’t write this lightly & clearly there are some accountants out there who are providing a top-notch service.

It isn’t always a case either of paying more and getting a better service, for me its really all about finding an accountant who will look to the future and focus on your business strategy, rather than simply look backwards and report on what’s already happened and work out how to get the smallest tax bill. An accountant who will ensure you have the right accounting system in place rather than charging you for their time to produce numbers which you should just be able to access yourself.

But if you don’t know anything about accounts how do you know if your accountant is doing a good job ?

Here’s 3 questions to help you work this out

Do you know how profitable your business is ?

Do you know how much cash you have in your bank account today?

Do you have enough cash to service the future plans of your business?

If you don’t know the answers to these questions then do something about it today, you are neglecting some of the most critical areas of your business or abdicating them to someone who isn’t serving you well.

The accounting system & your financial support team should operate as the heart beat of the organisation and be able to provide, in a timely manner the information to support all the strategic questions which the business faces as it grows.

If it can’t then you need a different system.

The numbers should be there to work for you; to let you get on with doing the thing, which you are really great at, which is growing your business. If you can’t get your hands on these numbers then you need a different accountant.

Apologies if this has turned into a bit of a rant but I am a witch after all!

If you need a recommendation for a good accountant full time, part time, in house, out sourced then please do get in touch.

Lets make 2016 a year when business owners are set free to achieve their potential, armed with the right quality of financial information & the right level of financial advice & support.