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    Tag: Cloud Accounting

    Thinking of making the move to cloud accounting?

    Posted on by Rebecca Campbell

    If you are concerned that the traditional accounting software you currently use is inefficient and outdated, or you’re feeling the effects of ongoing recruitment difficulties, with accessibility from home becoming more important, then making the move to cloud-based accounting software may be the solution for you.

    In our latest blog, PM+M director and cloud expert, Rosie Cooper, outlines the process and discusses how to maximise your move to the cloud.

    1. Systems review

    A full system review is a good place to start. Our detailed scoping report will outline your key processes and any interaction between other software. We will spend time with your finance team, and potentially wider team members, to understand the current processes, pain points and then make clear recommendations to get the most out of your new software.

    2. Conversion and implementation

    Moving systems can often feel like a daunting task, which is why many businesses tend to delay it and endure inefficiencies or issues. However, enlisting the expertise of a conversion and implementation team can provide valuable insights into selecting the right system for your needs and tailoring it to your specific circumstances.

    Our dedicated team will collaborate closely with your business to understand your unique business requirements, ensuring a smooth transition.

    Once the software needs have been agreed and your app stack is designed – we will talk to you about the level of historic data that needs to be transferred for comparability and what we can do with older data to make sure you adhere to company law. We will also discuss the cut off point and timescale for conversion so that there is no need for parallel runs on two pieces of software. Once timescales and level of data is agreed, we will provide appropriately phased plans and dates.

    Depending on the size of the business and level of data being converted, a conversion can typically take between 1 – 7 days. For larger entities, this may be phased over several months to allow for work to continue and where a phased approach is more appropriate.

    3. Training

    Training is an important, and often overlooked, aspect of implementing a new system or process, with some assuming that their employees will just pick things up over time. We will provide a comprehensive training plan from the outset to ensure your team are utilising the system to the best of its capabilities.

    Training should be seen as an investment to ensure your change in systems runs smoothly, and you are gaining maximum efficiencies as early as possible.

    4. Post implementation support

    Ongoing training and support are paramount in ensuring any issues with using the system are quickly rectified, and your team are confident with the changes. By working with a cloud accounting team like PM+M, you can be rest assured that we will provide the specialist advice, training, and post implementation support to build your teams confidence in using the system, and to ultimately achieve the best return on investment.

    5. Expert app recommendations

    With an ever-increasing number of apps on the market (there are over 1000 in the Xero eco-system alone), it can be challenging to understand which will benefit your business.

    Our team of experienced advisers spend their time reviewing and testing a multitude of apps on the market, and can confidently recommend those which will work for you. From data inputting to approvals processes, expenses to automated reporting, we can help you improve efficiencies by implementing an app roadmap which aligns with your goals and objectives.

    6. Data health checks

    Once your new system is implemented and the data has been migrated, it is critical that you undertake regular reviews to ensure the data is free from errors or duplications which may harm your reporting or insights. Our Xero Health Check service has become a popular option to ensure you are still getting the best out of your Xero subscription.

    Get in touch

    Our team of cloud accounting experts are on hand to support you with your transition to cloud accounting, from the initial systems review, through to implementation, training and expert app recommendations. If you would like to speak to a member of the team to discuss your accounting solution in more detail, we would love to help. Send an email to enquiries@pmm.co.uk and one of our cloud experts will get back to you.

    The importance of managing cashflow during a recession

    Posted on by Katie Heaton

    With widespread predictions that we are about to face the longest recession since records began, many business owners are concerned about the detrimental impact this could have on their business. As part of our recession resilience series, we take a look at how managing your cashflow during a recession can help reduce the impact of challenging financial times.

    Managing cashflow poorly can result in small businesses struggling, especially during times of recession. Maintaining a healthy cashflow is always essential for your business but it might require some extra attention in this difficult economic landscape.

    Prompt invoicing

    You may find as businesses tighten their belts that sales fall, some customers may put smaller orders in or switch to cheaper options, others may ask you for extended credit terms or discounts for fast settlement. Keeping on top of any money coming into your business from your sales is essential for healthy cashflow. Ensuring prompt invoicing and making sure invoices have all the correct purchase order information attached will reduce the risk of an invoice being put into query, you may also want to request that prompt payments are also made. Using features in Xero such as auto reminders and integrating payment services will help with collecting any outstanding debts.

    Sending statements to regular customers can be a good way of prompting them to pay and remove any risk of them suddenly querying a long overdue invoice.

    Consider your payment terms

    Payment terms generally refer to the amount of time a payer has to make a payment for the service or product you have provided to them. This could be anything from 14 days, 30 days, or cash on delivery and it’s important to include your payment terms on your invoices and statements. This should also include how you would like the payment to be made.

    It is vital to make these terms clear as you may wish to offer a discount to encourage early payment or you could charge interest on any late payments providing you have clearly stated your terms. Using Xero you could have different invoice templates for different groups of customers which may state different terms depending on their payment history.

    Cashflow forecast

    If you don’t already have one, this is a valuable step to take. A cashflow forecast will tell you the expected flow of cash in and out of the business over a certain period of time e.g. 6, 12 or 18 months.

    Such forecasts can be very accurate providing you are realistic with your figures and are likely to consider factors such as income, bank interest, wages, material costs, rent, rates and utilities. Obtaining an accurate forecast of your finances will provide you with a clear outlook as to where you are currently and where you are likely to be in the future. This can help you to plan any steps you may need to take to protect your business, and potentially look to raise extra funds if you think it is going to be necessary.

    It is important to review and update your cash flow forecast regularly to ensure it is accurate when circumstances change.

    Check your profit margins and look to reduce outgoings

    It is always worth going through your outgoings carefully during challenging times to see if there are any areas you can look to cut back on, although they may only be small savings, it can soon add up if there are a few. Consider your bills and whether there are any better deals out there if you were to use a different insurance provider, for example.

    During a recession it is likely that your costs of sale increase, so it is recommended to check your profit margins are in line.

    Get in touch

    For further information or advice on any of the topics discussed above, contact our cloud team manager, Rosie Cooper, using the button below.  

    A comment to note that the article does not constitute personalised advice and that advice should be sought before taking any action.

    How Cloud Accounting could help your business in a recession

    Posted on by Katie Heaton

    The pandemic proved the importance of cloud accounting, with many businesses closing their doors and going fully remote, there was an influx of enquiries within our cloud accounting team. With many businesses wanting the ability to seamlessly shift to remote work and keep their accounting function running perfectly even when employees aren’t in the office, cloud accounting was the solution. Here we explore how the same advantages may apply to recessions.

    Xero

    Xero is an entirely cloud based accounting software for small businesses. It performs accounting functions such as invoicing, payroll etc. and also allows for direct business bank feeds to streamline bookkeeping. Xero has some great standard features such as business snapshot which is a dashboard style report, displaying performance measures to help you understand the financial position of your business. Using your customisable dashboard, you can discuss your businesses financial health with your adviser quickly.

    Using automated daily bank feeds and tracking categories you can keep a close eye on any areas of your business that may be more cost sensitive and very quickly see what is included within each nominal – even drilling down to a copy of the original purchase invoice within a few clicks of a button.

    As Xero platinum advisers, our cloud team work closely with Xero every day, offering expert advice in converting from other accounting platforms to performing Xero health checks and making recommendations for software integrations that will help improve efficiency and cut processing time for finance teams. Prices for Xero start at £28pm.

    Dext

    Dext is our no.1 recommend app integration with Xero. Dext is a software application that allows business owners to electronically capture and store receipts, invoices, and other supporting documents which a business depends on to ensure they keep accurate and secure financial records. Dext removes the hassle of manual entry.

    Dext also has the ability to fetch supplier information using API links, taking the stress out of uploading information out of the equation too.

    Telleroo

    For many businesses, making manual payment runs takes a large amount of time. From choosing which invoices need paying to manually inputting bank information to online banking – Telleroo takes care of all of that for you. Your supplier or contacts financial information (payment details) are all input into Xero, bills are then selected in Xero using payment due reports and marked as paid by Telleroo – this sends an automatic payment run to Telleroo for approval (with copies of the invoices if also using Dext) and with a very swift approval process the payment run will be made. No more manual bank payments!

    Approvalmax

    With more remote working and digitalised finance functions, Approvalmax acts as your approval stamp at a managerial level except it’s completely digital. As businesses look to tighten their spending in certain areas, Approvalmax allows for a seamless PO and PI matching process, with a completely bespoke approval matrix available.

    Capitalise

    We have partnered with Capitalise to enable an easy funding search application process which can be completely managed by us. Capitalise allows us to do one application to most high street and other less traditional lenders for a range of finance products – whether a simple bank loan or a more complex invoice financing facility, our relationship with Capitalise and the connection with cloud accounting software allows us to search for the right products if needed.

    Capitalise also has a credit improvement service which aims to help strengthen any companies with a less than average credit rating, which in turn will allow for better terms for any lending if required.

    Futrli

    Futrli predict helps prepare short or long-term forecasting and reporting using all your accounting data. You can see daily whole business analysis across all customers and suppliers. Follow profit and cashflow, and debt to discover how you’re tracking to your plan. It also has the ability to create and manage reporting boards and KPI packs, making reporting easy and accessible. Feeling the cashflow pinch? Futrli can track daily cashflow with pinpoint accuracy, understand the optimum time to pay suppliers to get the best cashflow for your business and see the impact of early or late customer payments.

    Futrli can also help speed up the budgeting processes with instant smart budgets using algorithms.

    How could this help in a recession?

    Cloud accounting makes it easier to predict and access the relevant information – not to mention the fact that cloud-based services tend to cost less than yesterday’s on-premises solutions and drive more value too. For everything that companies strive to do during recessions, such as cut costs, stay agile, get innovative – cloud-based software serves the agenda.

    Our experienced cloud team are proactively helping many businesses digitalise their finance functions by converting and implementing different software and applications to streamline the finance functions of all sized businesses.

    Get in touch

    For further information or advice on the above cloud-based options or any general guidance on what may be the right options to ensure your business is well equipped to survive a recession, please get in touch with our cloud team manager, Rosie Cooper, using the button below.  

    A comment to note that the article does not constitute personalised advice and that advice should be sought before taking any action.

    Spotlight on: Xero’s integration with Zigaflow

    Posted on by Rebecca Campbell

    As one of the leading cloud accounting software systems on the market, Xero is constantly evolving to provide its users with even more features and tools, and ultimately, a better user experience. One of the key ways in which Xero does this is through integrating and partnering with various apps, which support businesses in a range of ways.

    In this blog, we’re putting the spotlight on Zigaflow, a fantastic app integration available to Xero users. We will be exploring what Zigaflow can do for you – helping you make the most of your software.

    What is Zigaflow?

    Zigaflow is a CRM (Customer Relationship Management) software designed to work in line with your business processes. With a strong focus on efficiency, many time-consuming tasks can be automated across sales, business operations and customer service.

    There are 3 different subscription plans providing access to different modules including quotations, contract management, order management, purchase orders, stock control and much more.

    How does Zigaflow integrate with Xero?

    Connecting your Xero account to Zigaflow gives you an incredibly powerful way to run your business, and better serve your customers.

    Examples of how the integration between Zigaflow and Xero works include;

    – Invoices created in Zigaflow can automatically be pushed into your Xero account

    – Customer records in Xero can automatically be created or updated from Zigaflow

    – Invoices marked as paid in your Xero bank feed, can automatically update corresponding invoices in Zigaflow

    4 key ways Zigaflow can benefit your business

    1. Flexibility
      1. You have control over how your processes work to mirror how you do business
      2. You can produce better looking sales quotes and proposals, which align with your brand and can include product images, specification sheets and more
      3. Other document templates for invoices, order confirmations, purchase orders and more can be fully customised to match your branding.
    2. Visibility
      1. You can see exactly what is happening in every area of your business, at a glance
      2. Detailed reports can give you clear insights on performance across your business allowing you to make informed decisions quickly
    3. Efficiency
      1. By automating tasks, you can massively reduce the amount of resource required to operate across all departments
      2. Communication with customers, suppliers and internal team members can be systemised
      3. Information is easily accessible to everyone who needs it (subject to access rights)
    4. Scalability
      1. You can increase your user licences as needed, giving you a platform for growth
      2. With step-by-step instructions throughout the software, users can get started quickly and easily
      3. There are no limitations on the number of customers, contacts or products which can be stored in your Zigaflow account.

    For more information on integrating Zigaflow and Xero, click here.

    Get in touch

    Xero has a whole host of apps for a variety of different functions, and we would be delighted to support you getting started.

    For advice on Zigaflow, and how this may be beneficial for your business, feel free to get in touch with PM+M partner, Jill Morris, by clicking the button below.

     

    Making Tax Digital for VAT: a basic guide

    Posted on by Rebecca Campbell

    In November 2020, HMRC announced that Making Tax Digital (MTD) rules will be mandatory for ALL VAT-registered businesses with a taxable turnover below £85,000 from their first return on or after 1 April 2022.

    Are you compliant?

    In this blog, we cover the basics to help you get a better understanding and be more confident about MTD for VAT.

    What is Making Tax Digital?

    Making Tax Digital is part of a wider government initiative to make tax administration more efficient and effective. MTD replaces manual tax administration with two things:

    • An online system where you can submit VAT returns (with MTD compatible software)
    • The digitisation of business records

    You can read more about the scheme here.

    What records do you need to keep digitally?

    As part of the rules, businesses will be required to keep a record of all accounting transactions digitally – handwritten records are no longer acceptable.

    If you use a scheme you may be required to keep additional records:

    • Retail Scheme: total daily gross takings
    • Flat Rate Scheme: items that VAT can be reclaimed on

    Although all your transactions must be archived digitally, you are not required to scan additional records like invoices or receipts.

    Finding the right software

    Compatible VAT record keeping software connects to HMRC systems.  It must be able to:

    • Keep and maintain digital records specified in the regulations
    • Prepare VAT returns using these records
    • Communicate with HMRC via a digital link

    You can check your software, or find a compatible product here, If you are considering changing your accounting software we will be happy to guide and assist you.

    Linking software

    If you find that you need to link your software packages (e.g., if you use more than one software or if you are maintaining them using spreadsheets), you can use a digital link. But what does a digital link comprise of?

    HMRC highlight the following:

    • Data is electronically transferred between software programmes, products, or applications. This may include using a formula to link cells in spreadsheets (e.g., where cells are linked by using a formula in one sheet that mirrors the source’s value in another cell)
    • The transfer is automatic (data cannot be manually moved between software or copied over by hand i.e., copy and paste).

    Exemptions

    For those who are unable to keep digital records of a business or use digital tools to submit VAT returns (may be impractical due to age, disability or location), you can ask HMRC for an exemption from MTD and follow the guidance in Section 3.4 of Notice 700/22.

    Get in touch

    If you have any questions in relation to becoming MTD compliant, (including reviewing your current VAT procedures, guiding you towards a suitable solution, assisting with quarterly submissions to HMRC and even providing training for your team), our team of digital experts in the PM+M cloud team can help! We have already helped hundreds of businesses become compliant – read some of our client testimonials by clicking here.  To find out more, get in touch with Jill Morris by clicking the button below.