Small businesses generate 42% of the GDP each year and employ 120 million people. With less than 25% of small businesses being employers, the vast majority of small businesses are “mom and pop.”
There are no extra hands for bookkeeping, legal compliance, or even sweeping the floors. It’s all one person!
Sweeping changes in tax codes, employee compliance, healthcare, and record-keeping are part of the burden for small business owners in 2018. Keeping track of it all is a challenge.
Cloud-based technologies, like the Xero accounting package, help hurried business owners who can’t keep up. Read on to learn how this technology can help your small business.
Xero Accounting Package for Growth
With only one person in the office, on the sales floor, and producing the product, it can be busy to keep up with your accounting. That is why more than one million subscribers use Xero each year. It is intuitive and easy to use, allowing you to focus your time on other important business items.
Here are some advantages of the Xero accounting package:
- Unlimited users
- 24/7 online support
- Anywhere, anytime secure access
- Online invoicing
- Simple online bank reconciliation
- Inventory tracking
- Mobile app
- Simple accounts payable
- Expense claims
- Pay bills
- Simple payroll tool
- Purchase orders
- Business performance dashboard
- Contacts and smart lists
- Relationship history
- Online payment acceptance
- Secure file storage
- Sales tax
Other advantages of using the Xero accounting package include support for all the listed items and more. It is important to note that Xero provides powerful functions usually found in much bigger organizations’ software.
Compliance Challenges in 2018
Changes in employee compliance are costly to small business owners. Nearly one-third of U.S. small business owners spend more than 80 hours each year dealing with federal regulation. This doesn’t include additional compliance requirements at the local and state level. The largest concerns are in payroll, wages, and benefits.
Overtime Wages and Accrued Benefits
Overtime calculation changes mean that how and when overtime is given changes from state to state. The daily and weekly calculation is not standardized. Also revisited are the rules clarifying who is and is not eligible for overtime pay.
Local, state, and national minimum wage laws are also undergoing change, as are mandatory paid sick leave, family leave, and other types of accrued benefits. Even healthcare continues to be a compliance challenge. Changes in pay equity documentation and retirement plan compliance further complicate things. The Xero accounting package is available to help.
Corporate Tax Rate Change
Reduction of the corporate tax rate at the national level and adjustments to the state levels of compliance mean that there are new record-keeping and bookkeeping requirements to consider. This means expense and revenue tracking accuracy are vital.
Privacy protection and safety of consumer data continue to challenge businesses. Firms doing business abroad must comply with multiple country regulations. The Xero accounting package includes state-of-the-art data and privacy protection to keep information safe and confidential.
Contact information, payment history, relationship notes, and other customer information is password protected and stored encrypted.
Cash Flow Improvement
The good news in 2018 is that banks must process same-day ACH debits of up to $25,000 by 5:00 p.m. This greatly improves cash flow management for small businesses. Xero also improves your cash flow with online invoicing and payment collection. Its cash dashboard keeps you in front of people who owe you money!
Tax Filing with Xero
The Xero accounting package takes your needs into account. Through the real-time dashboard, you can access records and current information anytime anywhere. All you need is internet connection and a device such as a laptop, tablet, or smartphone.
Xero apps can keep important deadlines for payroll and quarterly filings at the top your list through timely reminders. For all of your tax filing, the software makes collecting your paperwork as painless as possible.
Filing taxes is easy with everything in the right place. Xero can store all your business tax-related documentation safely.
You may add notes to transactions to jog your memory later. Manage your accounts payable, accounts receivable, and general ledgers in an organized way.
You can reconcile accounts on a regular basis without waiting for monthly statements. With real-time accuracy, you can look at the numbers regularly.
Keep up with your financial reporting too, with a customizable dashboard.
Data Accuracy and Protection with Xero
All of this information at your fingertips anywhere and anytime is powerful. With the Xero accounting package, you can expect automated help to keep your data coded correctly and your entries organized. Xero can accept direct feeds from your bank and other inputs so that you are not re-entering data.
Automated reconciliation at the close of business each day gives you the answers you need to nurture your growing business. No more end of the month or quarter surprises.
On the protection side, you can ensure the safety of your data with strong passwords and multi-step authentication. You can also limit login attempts and geography by your employees or accountant. Only let the people you want to see your data have access.
Customer privacy is protected in Xero. Customer identity and payment information are segregated and password-protected.
Enter Integrated Automation
The Xero accounting package includes access to sophisticated add-on apps that can further automate accounting tasks like monthly closures, tax-reporting, and more. Financial reporting and forecasting is easy with expert assistance from the add-ons.
You can even have completely automated, outsourced bookkeeping or CFO services through the apps integrated with Xero. Xero provides complete tools for small business accounting and apps like ScaleFactor leverage that information to help you grow your business.
Sometimes, even with the intuitive processes of the software compliance, requirements are just too much for a one-person startup office. This is where outsourcing your bookkeeping needs in combination with Xero really shines. The Xero accounting package grows with your company.
Compliance with a Click
There’s an app for that. That long list of tax and business compliance requirements that will take you 80+ hours to complete can be reduced to an automatic reminder via ScaleFactor. In fact, there is a dashboard to manage compliance, insurance, and logistics all in one location.
The ScaleFactor app includes a place to keep your certifications, EIN, and other important information in one easy-to-use and find spot.
Bookkeeper, CFO, and More
The right combination of services can save you time and money. If your business is just you, spending the hours to maintain legal compliance or to check data accuracy is time spent away from doing what you do best.
You can use app add-ons to free up your focus on business activities that make you money, instead of dealing with daily, weekly, or monthly processes. Why rely on a profit and loss statement once a month or once a quarter?
You can have those numbers daily, even instantly. One click can upload, manage, and pay bills, another can digitally send your invoices. How easy is that?
ScaleFactor offers an integrated app that automates bookkeeping from your mobile. Take a picture of a receipt and it goes to your expense claim. Manage transactions or update a sales forecast as you are changing the conditions.
Apps like ScaleFactor integrated with Xero can provide sales and marketing expertise, business development and strategic guidance as well as the traditional back office functions.
Between Xero and integrated apps, accounting, taxes, payroll, receivables and payables, legal compliance and benefits are under control. You can even bring in all the functions of a CFO, without actually hiring one! Custom tailor dashboards to give you the information you want, anytime you want it.
Looking Back to Look Ahead
Predicting where your business is going is where Xero accounting package integration excels. Xero shows you where you are, to the moment. The ScaleFactor integrated app packages services like accurate forecasting and budgeting with expert advice.
As you plan for success, you have unlimited scenarios and the ability to adjust forecasts and budgets on the fly. Have a great meeting with a client? Adjust your forecast and see if the numbers change. With data at hand, strategic decisions need never be made blind.
You can leverage the information in your Xero file to see your cash runway, work your KPIs, and get your vendors in order. You can optimize your cash flow and take control of finances in real-time, without waiting for a bookkeeper or someone to “run the numbers.”
Ready to Learn More?
The Xero accounting package is the most powerful and easy-to-use tool for small business available today. Add on the ScaleFactor app for real-time expert advice and tailored dashboards that simplify decision-making. Contact us today to discuss how we can work together.