Steer Your Business Dec 2020 - Magazine - Page 11
Power of the
Computing power is now available
to SMEs that previously was only
within the grasp of large
corporates with massive
Moving from traditional desktop
based systems to the Cloud can be
compared to evolution of mobile
phones from the old Nokias to the
iPhone. The Nokia was a great mobile
phone for making calls and sending text
messages. Then the iPhone appeared and the
uses to which a mobile phone could be put to increased exponentially. Traditional systems like Sage can
be compared to the Nokia, good in its day but now trying
to play catch up against a superior technology.
The Cloud Accounting market is pretty crowded but
two players stand out, Quick Books and Xero. Others
include Free Agent, Kashflow, and FreshBooks. However
with the dominance of the big two some consolidation
can be expected (accountancy pun intended).
Cloud systems can help streamline and automate
routine accounting and bookkeeping tasks such as bank
reconciliations using bank feeds and rulesets.
Where systems like Xero really score is the ability of
other applications to integrate with them. For Xero a market place has evolved which has over 800 other software
applications. These consist of applications which can
provide solutions for Ecommerce, Stock Control, Credit
Control, Customer Payments etc. We are even seeing
firms now that specialise in application advisory for cloud
Tasks like purchase invoice processing, with applications such as Receipt Bank and HubDoc automate processing using OCR (Optical Character Recognition) and
machine learning technology. Invoices and receipts can
be scanned or emailed and the app will auto populate
details such as supplier name, account code, tax details
etc. This reduces errors, speeds up processing time and
frees up time for other tasks. It also gives online storage
of documents to ffacilitate a paperless environment.
ApprovaMax is an app that manages the approval
process for expenditure. Invoices can be filtered based on
pre-determined criteria such as type of spend, amount
over a certain limit etc. and sent to
the relevant people for sign off giving an electronic approval stamp and
helping with control of expenditure.
Employee expenses capture, recording and approval can be automated with
apps such as Expensify or Trip Catcher.
You can record mileage using in built GPS
features and calculate the cost using pre set
Payments from customers can be automated using
apps such as GoCardless for direct debits. Invoices can
be sent to customers with online payment links using
payment providers like Stripe.
Whether you are a manufacturer, distributor, retailer or
online seller there are apps that can manage your selling
process, stock control and integrates with your accounting system directly.
Our firm choose to become a Xero exclusive practice.
We have moved clients from a number of other systems
to Xero and all have seen tangible benefits. There is even
an app to help automate the conversion process which
Xero will pay for.
In our view Xero scores on a number of fronts, it has
over 600k UK subscribers and excellent UK based support. It is intuitive, you don’t need to be a trained Accountant to use it but some support will be necessary to
get it properly set up and working.
Overall we have no hesitation in recommending Xero
to help our clients harvest the power of
Contact Michael Daly FCA
Daly Accounting - Chartered Accountants
STEER YOUR BUSINESS 11