Xero… A Beginners Guide for Freelancers
This week’s blog is all about the accounting app Xero. While there are other apps available, this is the one we use at The Arts VA. Used by millions worldwide, it can save you time - and your sanity - if you’re a small business. Here are six ways Xero can make your life easier…
An important part of running a business, no matter how big or small, is managing your finances. Xero makes it easy to draft invoices, send them via the app and keep track of the payments. It will automatically generate invoice numbers and you can easily view any outstanding invoices, taking the stress out of your business accounts.
2. Late payments
If a payment is late, Xero can chase it for you. You can set regular reminders on Xero that go out automatically; on the day invoices are due, once they’re overdue three to four days, and after seven days. This is really useful if you want to distance yourself from the stress and worry of chasing payments.
This is where you can easily see which invoices are due to be paid and any bills that are outstanding. You can also see your current incomings and outgoings, as well as what came in and went out during previous months.
It’s a really efficient way of bookkeeping as you can quickly and easily see how your small business is doing. The app allows you to control your business finances wherever you are in the world.
It’s important that every business related purchase is noted so you can keep track of your spending. You should also hold onto the proof of purchase - whether it’s a receipt or an invoice - if you plan to claim that expense as a tax deduction.
When it comes to recording your business transactions, Xero makes it very easy. You can quickly upload receipts via Hubdoc and view any bills you still need to pay.
5. Bank reconciliation
This involves cross-referencing your business books in Xero against your bank statements to check that the transactions and balances match. If they don’t, you can then work out why.
You should do this regularly - daily if you can - so that you can identify any errors. By making this a routine task, you will keep your books up to date and make your tax returns easier.
6. Tax return
When it's time for your end of year tax return, you can give your accountant access to your Xero account so they can easily and quickly get the info they need. This cuts out a lot of the back and forth and takes the stress out of tax returns.
The Arts News
Jodie Comer is set to make her Broadway debut in Prima Facie when the West End production transfers to New York in spring 2023.
A new immersive production of Guys and Dolls is set to be staged at the Bridge Theatre in 2023. The revival previews on 27 February and opens on 9 March. Casting will be announced at a later date.
Get in touch!
If you have any questions about Xero or working with The Arts VA, you can contact Charlie here.