James Harrison's role at Northern Accountants is as a financial controller. He ensures that our clients are provided with the information and knowledge to help them make better business decisions. James loves helping clients by adding value to businesses by assisting with the day to day running of finance, on all levels.
To correctly reflect your purchase invoices & total amount payable within Xero you will need to extract the information from the invoice and post/submit this within Xero.
Information from invoices can either be manually inputted into Xero or Extracted digitally via a dedicated software. Software such as Receipt bank or Hubdoc.
To post a new manual purchase invoice into Xero you will need to access Xero>Business>Bills to pay>new bill.
This will open a new template to manually input the purchase invoice information. From this template, you will be able to input Supplier name/Date of invoice/due date/invoice reference/ currency/ unit quantity/ Unit price/ type of purchase/Tax amount.
Once all of the data has been manually extracted into Xero the template (Draft invoice) can be approved. Once this has been approved the invoice has been submitted into your accounts and will reflect the data put.
Once an invoice has been submitted, you can now upload a PDF version of the invoice for record-keeping. You can access by Selecting the folder paper in the top right-hand corner of the approved invoice
From here select upload files. This will allow you to browse your current files within your computer database and upload any relevant files related to the invoice.
Now you have an approved purchase invoice within Xero, this will prompt additional commands in relation to the new invoice just posted. You can find this in the top right corner of the invoice under the drop-down “Bill options”
The dropdown will give you access to the following
Repeat bill. Repeat bill will allow you to create a reoccurring bill given the information provided for a set period. This is perfect for bills you know are set up monthly on direct debit/Standing Order.
Void. This will allow you to delete the bill posted to the accounts.
Copy. This will allow you to extract the information provided in the bill and copy them into a newly created bill template.
Edit. This will allow you to edit the data within the approved bill potentially for mistakes or miss postings. The bill will need to be re-approved if the information has been edited.
Add Credit Not. Add credit note will allow you to post a credit based on the data of the original bill approved.
Also once approved and posted this will prompt a command “make a payment”. This can be found at the bottom of your bill.
This will allow you to mark when a bill has been paid. Here you can enter the amount paid (In full or part paid) The date it was paid, The bank account it was paid from, and a payment reference.
Once the information has been entered, “add payment” will post the payment against the bill and this will now be marked as paid.
James Harrison’s role at Northern Accountants is as a financial controller. He ensures that our clients are provided with the information and knowledge to help them make better business decisions. James loves helping clients by adding value to businesses by assisting with the day to day running of finance, on all levels.
By James Harrison
As a business owner, have you ever held a meeting in your office, where you’ve had to apologies for the knee-high stack of documents on your table from your accountant?
Have you ever thought…
“Is all this paperwork necessary for my accounts? Isn’t there an easier way to manage the endless stream of receipts and invoices to comply with accounting standards?”
Continue reading to find out how Cloud Accounting can transform the way your company operates. I’ll also dive into your most frequently asked questions, and the best software currently available for making tax digital (MTD).
Cloud Accounting Benefits?
Cloud accounting software allows you to digitalise your business by making all of your accounting activity available at the touch of a button.
It also allows you to project your current financial position, make payments, and future proof your success – by giving you the ability to scenario plan if anything were to change.
Furthermore, and potentially the main benefit to cloud accounting, is the way it allows you to operate from almost anywhere in the world.
This is, however, as long as you have a working computer and a stable internet connection.
All of this, in turn, allows for any business owner to access their current information day or night – which has transformed the way thousands of businesses operate.
Features and benefits when using Cloud Accounting:
Access anywhere in the world with an internet connection
Get real-time information
Make bulk payments
Schedule supplier payments, invoices and wages
Forcast your future finances
Scenario plan for possible changes in your market or business
Cloud Accounting Downsides?
Although your accounts can be managed from the anywhere in the world. Cloud Accounting software may not be fully utilised to its full potential.
This may be due to a lack of understanding of how the software operates. Or of an incorrect initial set-up of your cloud-based software, or even in the way that not all accounting software is created equal.
Therefore, here at Northern Accountants, we’ve specialised in software that’s tried and tested to work time-and-time again, giving you full control from start to finish – such as Xero (more on this below).
By doing this, it has allowed the people we work with to concentrate on what they do best, which is to manage how their business operates, instead of chasing paperwork.
Long story short, the digital revolution is greatly impacting the tools at disposal for modern accountants. This includes giving the availability to access the overall financial health for your business – not just money-in vs money-out.
This means the traditional stereotype of an accountant sat in a dark corner of a room buried in receipts and invoices has almost become extinct.
How does cloud-based accounting work?
Cloud accounting software is managed and stored through external servers or “The Cloud”. The software is used in a very similar way as you would use your emails. It can be easily accessed through a secure login on the web or an application.
The data held on the cloud is kept at real-time, allowing for the information to be constantly up-to-date.
As the software can be securely accessibly from anywhere in the world, this allows for the flexibility for multiple users. Such as you, the business owner, and the accountant to both access the same data at the same time.
All data is securely stored through an external server, This means that business owners aren’t required to replace their mountain of paperwork for a room full of computer equipment.
As a result of this software, costs usually run on a subscription basis. Allowing business owners to keep the money where it belongs.
So, What’s the Best Cloud Accounting Software?
As we are constantly moving towards a more digitalised world, it can become overwhelming the amount of choice we have as consumers of products and services.
Clouding Accounting software is no different.
The software that is currently offered aims to give you, the user, full control over your accounts from anywhere in the world.
Xero currently prides itself in being easy to use, and accessible for SME businesses.
Here at Northern Accountants, we are Xero platinum partnered. This means we’re registered to offer Xero Training and full software support. From on-boarding, to the full management of your accounts using this ingenious software.
So why is Xero so good?
Building a business and projecting growth can be nearly an impossible task to predict. Such as, if your business goes from a local hairdressing salon to an international franchise overnight. This is where Xero shines.
Xero allows you to project growth or any variables for that matter which might affect your accounts. In summary, it allows you to future proof your success, big or small, among other benefits.
Multiple Factions and Add-Ons
Furthermore, to assist with the day-to-day running of your business, Xero is currently partnered with hundreds of other software providers that complement your business.
Receipt Bank, for example, is one of these partners which allows documents to be scanned from a smart device, straight into Xero.
Another example is Chaser – which integrates the receivables into Xero. This ensures that your, or other companies you trade with are paid on time.
Xero has also launched a “Xero Advisor” Certification. This allows for business owners to identify financial professionals who have been certified to use the software and skills offered by Xero in a compliant and sufficient manner.
Quickbooks’ easy to use interface allows for small businesses to handle their basic accounting needs. And while it’s not as robust as Xero, we still believe it’s worth a mention as some people may prefer its interface.
Financial reports can easily be generated, giving informative and timely data to you as the business owner.
Furthermore, applications on the App allow you to upload invoices and receipts through a click of a button.