Choosing an accounting package can be daunting. There's so much to think about, and you want to make sure you're getting it right.
To help get you started, we've collaborated with The Wow Company, accountants who provide the best financial care to agencies across the UK and work with Xero daily.
Xero is the most popular accountancy package used among Streamtime customers and this article helps you explore if it's the right fit for your business, and how you can get started.
I'm considering moving to Xero. What should I expect?
Xero is a user-friendly system designed for people who don’t have specialist accounting knowledge. It’s a cloud-based tool that provides a real-time view of your cash flow anytime and anywhere.
Key features:
Run your business on the go | Use the mobile app to reconcile, send invoices, create expense claims and view reports on-the-go |
Get paid faster | Send online invoices to your customers and get updated when they're opened |
Reconcile in seconds | Import and categorise your latest bank transactions to make the most of your time |
Create customised reports | Track your finances with up-to-date reports, presented in a way that works for you |
Read more about Xero's features here.
What Wow customers say about Xero
We worked with The Wow Company on our move to Xero. As a result, we've learned that there's a different way of doing things and our legacy systems weren't fit for purpose. We've now put ourselves in a far better position to grow and scale as a business now and that is thanks to this whole Xero integration process. It was a seamless process.”
James Webb, Managing Director & Co-Owner, Propel
Why should I integrate Streamtime and Xero?
When you move to Streamtime, it becomes your single source of truth. Add expenses in seconds from your master expenses list or create 4 invoices in just a few clicks, and send them to Xero straight away. You can even invite your bookkeeper into Streamtime so they can forecast cash flow and stop chasing you for updates.
What are the benefits of integrating Streamtime and Xero:
Reduce admin by bringing everything into one place
Remove double handling between tools
Share data with your team and/or accountants without any additional effort
View real-time updates on how you're tracking financially
Head here to find out how to integrate your Xero account with Streamtime.
I have multiple Xero accounts. What do I do?
Streamtime offers branches to handle multiple identities within one account. Each branch can be linked to a separate Xero account so you can keep everything in one place.
How do I set up Xero?
Setting up a new accounting package can feel overwhelming, especially if you don't have a go-to chartered accountant. Xero have pulled together a handy guide to follow here.
Wow have also shared a checklist with us for a solid foundation.
You'll want to set up:
Chart of accounts (or import these if you already have them)
What account codes should I use?
The chart of accounts is a list of all accounts you can use to record your transactions in Xero. It helps you categorise your transactions correctly and group similar accounts together to generate reports about your organisation.
The account codes you use are completely optional. You can choose to put everything into one sales code or split them by revenue stream, project or retainer. When setting these up, it's good to consider your internal reporting, and what would be most useful for you to see, as this will help you to decide the best way forward.
These account codes need to be set up in Xero itself, following the steps here. Once you integrate with Streamtime, the account codes can be applied against items and expenses so they pull through to the correct place in Xero when invoiced - it's a huge time saver.
Defining your revenue and expense codes
Your revenue and expense codes are unique to you.
The key things to note are:
The codes used have meaning
Make sure you have the correct codes showing as cost of sales so you can accurately see what costs directly relate to revenue and have an accurate gross profit figure
If you have add-on software, such as Dext, you'll want to make sure you have your coding rules set up correctly
You can also create a custom layout, which will show costs that are important to you.
Tax considerations
Once you've set up your integration, your tax rates will pull through from Xero itself.
Here are a few things to consider when setting it up:
Ensure correct tax rates are linked with account/revenue/expense codes to avoid having to manually change these in Streamtime
Be aware of the tax rates and rules regarding invoicing to companies in other countries
If invoicing to different revenue streams or products/services, you may choose to set up different sales codes to recognise when something is out of place from a tax perspective
What else can Xero do?
Xero offers a wide variety of services, catering to its nearly 4 million businesses.
The Wow Company have highlighted the below services as popular among their customers:
Tracking projects and revenue stream profitability
Personalised and custom reporting
Payroll
Expenses
Budget management and reporting actual to budget
Maintaining your fixed asset register
Submitting tax returns to HMRC
Online file storage
Integrations, in particular, Dext
Can you introduce me to The Wow Company?
The Wow Company specialises in working with agencies with a fee income of over £1m, providing support and tailored services for larger agencies. This includes all the basics you’d expect from your accountant and proactive advice, plus they can act as your outsourced finance function and Agency Profit Reviews.
If you have any more questions or are interested in an introduction to Wow (UK customers only), send us a message and we'll be happy to help.