The hardest part of owning a small business? Actually owning a small business. Especially if your business is construction-based or service-based there is always a lot of moving parts. It may seem cliché, but between the paperwork, invoicing, and managing expenses it’s hard to do much of anything other than working on the computer to keep it all together. Truth be told though, accounting wasn’t the business I had hoped to go into. After all, woodworking and renovation were much more my speed. But it didn’t take away from the fact that good accounting is often the difference between a successful business and one that fails. I finally found a system that allows me to keep it all together while giving me more time to spend doing what I love most – tackling renovations and builds. Let’s dive into my thoughts here on Accounting for your Small Business with Xero. 

This Blog is written as a part of a partnership with Xero. While I am compensated for my time, all opinions are my own. 

What is Xero?

Accounting for your Small Business with Xero 

Xero is an online, entirely cloud-based system for business accounting. With options to design branded proposals, easy invoicing, automated payment reminders, categories for your expenses, and a comprehensive snapshot of your business’s growth and change over time, Xero is full of ways to improve your business and workflow with minimal effort.

Xero offers several access options, including a web-based version and an app on your phone, so your accounting comes with you no matter what your day-to-day looks like. Xero is like an administrative assistant in your pocket, on your tablet, or on your computer.

What My Business Needed

Accounting for your Small Business with Xero 

When I first started my business, I was a total excel spreadsheet girl. I made invoices manually and tried really hard to do everything I could to stay organized. This was fine initially, but the busier I got, and the more deadlines and commitments I was juggling, the harder it got to keep a hold of it all. Especially when you work in a field like construction, and in my case, woodworking, you’re constantly pulled in a million directions. If you don’t stay on top of it, you can easily end up drowning.

Without a doubt, growing pains are a part of any business – it’s a sign you’re moving in the right direction, and it’s also a great time to sit down and look at the areas where you could improve. Outside of needing to get organized for my own sanity’s sake, it’s often misunderstood how deeply personal what we do for people is. But making the process easy for them ensures they’ll keep coming back. 

Key Benefits of Xero

Accounting for your Small Business with Xero 

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• Mobile Access! Ever get a call or a frantic text that requires a quick answer? This happens often for me, but Xero has made it easy. Work from your phone, computer, in the office, or on the go. Everything you need is right at your fingertips, no matter where you are or what you’re doing.
• Ability to add custom codes and categories to customize your records to your business. I love this because every business is structured differently, so you can sort expenses down to the nitty-gritty details while keeping it streamlined.
• Keeps all your accounting records in one place, making it super easy when it comes time to see how your business is doing, check on budgets, and make tax time a breeze!
• Write proposals, invoices, reconcile expenses, run reports, and even set up reminders all within your Xero dashboard. This was easily one of my favorite features as it was one of my biggest obstacles the first few years.
• Xero is really user-friendly, but if you find yourself struggling with anything, there are a slew of tutorials and walk-throughs to answer any questions you may have. Plus, they have an excellent customer service team to make sure the Xero system is doing all the heavy lifting for you.  Especially when I was setting up the initial codes for expenses and income, having someone walk me through that was a breeze.
• Connect your bank account to make sure nothing is missed. Let’s be real, we all miss a receipt now and again, or spend time searching for that one deposit we didn’t stop and document perfectly, so it’s great to be able to check in on Xero’s system and quickly see recent transactions.
• Accept payments online. By adding online payment options to my Xero invoices, it’s so much easier and more convenient for my customers to pay me with their credit card or by direct debit.
• Track inventory and collect data on any number of items or products to be sure you’re ahead of supply needs. Whether stocking items or ordering materials for jobs, this is a classic obstacle for any business, making it a much-appreciated feature to see!

Investment

Accounting for your Small Business with Xero 

I love that Xero made their services customizable to suit your business, so you’re only paying for the features you need. Xero is an economical system, especially when you consider what hiring an accountant will run you. Plans start at only $12.00 per month for a starter plan with more features added as you increase in tiers. For where I am, this plan works great for me as it includes everything I need, but I am not paying for features I don’t. I like knowing though, that Xero will grow with me as I take on bigger or more complicated projects, add additional employees, etc. 

Wrap Up

Accounting for your Small Business with Xero 

Whether you’re running a construction empire or still building your business, keeping your ducks in a row is the key to offering good service to your customers and maximizing your profits. For me, I love Xero’s simplicity and ease, offering me a quick and efficient way to manage all my administrative tasks without complication. Everything you need is right at your fingertips, no matter where you are.

Xero allows me to focus on what I do best, and what I love to do—build. Want to learn more about how Xero can support your business? Visit xero.com/toolgirlsgarage to get 50% off Xero for three months.