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Do Small Businesses Need To Hire A Xero Accountant?

Do Small Businesses Need To Hire A Xero Accountant?

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Xero accounting software recently completed some research to see when business owners felt that an accountant in Peterborough should be hired for business. What they found was some real uncertainty about when an accountant should be hired. There was also uncertainty about the actual value an accountant brings to a small or start-up business.

The biggest reason that small business owners employ the services of a Xero Accountant in Peterborough is because they didn’t start their business to be swamped in financials and paperwork. So it is the first job they take off their list to outsource to someone else.

This makes perfect sense. Why wouldn’t you hire a Xero accountant in Peterborough to take care of the numbers while you focus on what you do best; running a successful business!

As a small business you will always be looking for different ways to save money. You may see a Xero accountant in Peterborough as an additional expense that can be taken out because it is unnecessary.

On paper this may be the case. But tasks such as organising invoices, collating receipts and filing taxes can be extremely time-consuming. This is especially the case for someone without huge amount of experience.

The best Xero accountants in Peterborough will save your money by taking these time-consuming tasks off your hands. However, they will also always be looking at ways that your business can make more money. When you hire a good Xero Accountant you will find them to be more like coaches. They will encourage you to achieve more for your business.

An accountant can add huge amounts of value to your business in various ways. This could be such as increasing your revenue, reducing your expenses, planning your cash flow, helping grow your business and business planning. They can even help at identifying new market opportunities that you may not have considered before.

The added bonus of using could accounting software, such as Xero, is that you don’t need to hire a Xero accountant in Peterborough full-time because they can work remotely using the same date from their own office.

Invoicing Tips From Small Businesses For Small Businesses

Invoicing Tips From Small Businesses For Small Businesses – Xero Accounting Services in Peterborough

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Here at Direct Peak we work closely with Xero and offer Xero accounting services in Peterborough to small and medium businesses. Xero have recently been analysing over 12 million invoices to discover some revelations about getting paid on time. They also asked small business owners for their own tips and tricks too.

As accountants offering Xero accounting services in Peterborough we want to help our clients achieve more with their businesses and accounting software. We have put some of these invoicing tips for small businesses together for you to help you get paid on time or sooner;

However, before we start we’d like to make you aware of the fact that almost half of all invoices are paid late. While some businesses are great at getting paid what they are owed on time, other businesses are waiting weeks or months to get paid. It’s important to bear this in mind when you are reading these tips as it could help you be one of the businesses that gets paid on time, every time.

  • Make sure you send out your invoice payment terms before work begins. In this document you can set out the tone for the transaction such as what forms of payment your will accept, the currency or currencies you deal in. Also include what your late-payment penalties are and if you charge them as well as when from.

 

  • It is essential that you are clear on your due date too as this is when you are expecting the client to pay you by. While 30 days is more common among small businesses, this is changing.

 

  • Between 70% and 80% of businesses give 2 weeks or less as their payment terms and more than half of those businesses request their payment within 7 days. If you are serious about business and work hard to meet your client’s deadlines, why shouldn’t you be paid quickly?

 

  • Remember however, it doesn’t matter how short or long your payment terms are – if you don’t send the bill on time then you won’t get paid. The payment clock doesn’t start ticking until they have received the invoice. Why not use templates through Xero that enable you to speed up your invoicing process so you can send invoices quicker and get paid quicker too?

 

  • It is okay to chase payments from your clients. You don’t need to wait until they are 1 month late before you can start chasing. You could set up a friendly reminder email as the payment due date approaches and then follow up again as they go past the due date. If you don’t have the time to chase, or to save you time from chasing outstanding payments why not use Xero to automatically send reminder emails for you?

 

If you need help with invoicing, your invoicing process or chasing payments then why not give us a call? As a business offering Xero accounting services in Peterborough we would be happy to help you with advice, guidance and support.

Why Small Businesses Should Migrate To Cloud Accounting Software?

Why Small Businesses Should Migrate To Cloud Accounting Software

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There are so many benefits to migrating to cloud accounting software, especially if you are a small business. It not only costs less and makes your work life balance easier but it also streamlines your business processes.

As professional Xero accountants in Peterborough we have helped many clients migrate their accounts to Xero as a cloud accounting software. But there are lots of benefits with any cloud accounting software. We have listed the top four benefits for small businesses;

  1. It’s Easy

Cloud accounting software like Xero has been designed to be easy to use by non-accountants. You’ll also find lots of ‘how to’ videos online that will help you if you get lost or forget how to do something. However if you’re using Xero you are always welcome call out Xero specialists in Peterborough and we will be able to help you.

  1. It’s Safe

Previously with older accounting systems you will have had to constantly back up your cloud accounting software. But with cloud accounting software your accounts are completely safe and secure. Xero will give you a cast iron guarantee that your data is completely safe and secure, whenever you need it.

  1. It’s Flexible

You no longer need to be stuck in the office to do your accounts. You can do them from wherever you are as long as you have an internet connection. You also don’t need to select one person to have the Xero log-ins and have the accounting software on. Everyone in your office can used the Xero cloud accounting from any device if you choose to give them access.

  1. It Increases Productivity

Cloud accounting software like Xero has many plug-ins and innovations that enable the user to produce quicker and more efficient results with less input. You can now have all the business information you need at your fingertips. This will allow you to boost productivity, expand into new markets and make services more accessible or simply make more profit.

 

If you would like a free, no obligation consultation of your accounts and how Xero accounting can help you then please contact us directly.

Xero Training in Peterborough

We Offer Xero Training In Peterborough

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Here at Direct Peak we offer Xero Training in Peterborough to help our clients get the most out of Xero for their business. Our Xero training will empower you to understand all the amazing features that Xero has to offer and how you can use these with ease to improve your business performance.

We can offer Xero Training in Peterborough from our office, at your office or even over Skype if you would like online Xero training. We can tailor the Xero training to suit your individual needs and requirements, from a one hour Xero training session, right through to a full day Xero training session just for you or for you and your team.

Our Xero training course in Peterborough will help get you and your business on the right track financially.

What Does Our Xero Training Include?

  • We will show you how to really use Xero once your account is set up so you can get the most from it. This will also serve as a great refresher course as we go through any new Xero updates and features you may not have noticed.
  • You’ll learn how to manage debtors with the sales dashboard, chase debtors and sending customer statements so you can get paid by your clients on time, or sooner.
  • We can show you Xero add-ons that will help improve the efficiency of your business; we will show you how to use each of the cloud apps that you need to enhance your business operations.
  • We will teach the basic functions of payroll in Xero including the setting up of payroll, the pay template, timesheets and how to process pay runs and reports so you can manage your own payroll in house.
  • We’ll show you how to review, edit and submit VAT returns for your business directly from Xero to HMRC. We will also show you the basics of book-keeping and how you can apply that understanding to your business.
  • There are some amazing and truly powerful reports available through Xero and we can show you the different types of reports that you need for your business along with how you can make the most of them.

Like we said; our Xero training in Peterborough is tailor-made to meet your individual needs. Whatever you need help with on Xero we will put together the right Xero training for you. We can offer all of the above and so much more. Please contact out friendly team directly to find out more.

Migrating Your Accounts To Xero

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We meet many business owners who like what we stand for and want to work with us, but feel they can’t as we are Xero Accountants in Peterborough and they use Sage or another type of accounting software; but fear not, whatever system you currently use we can help you.

Our XERO specialist accountants can migrate your accounts from your current accounting system to Xero. This will make running your business easier and checking your cash flow quicker and simpler.

Why Migrate Your Accounts To Xero?

Here at Direct Peak we are Xero Accountants and feel that Xero accounting is a fabulous alternative to your old accounting software because it provides a real-time view of cash flow, wherever you are and at any time you choose.

You can use the mobile app to run your business on the go; reconciling, sending invoices, creating expense claims and more whether you’re eating your breakfast, on a train or enjoying a family holiday. You can also get paid faster with Xero because you can send invoices online and you’ll get an update when they’re opened by your customers. Xero will also import and categorise your latest bank transactions to so you know how much cash is in your bank account at all times.

How to Move To Xero Accounting?

Firstly, of course this is something our Xero Accounting Specialists in Peterborough are happy to help you with, or complete for you as we know that business owners are busy people.

However, if you do choose to move to Xero yourself you will need to register with Movemybooks for free then complete the simple step-by-step instructions shown and this will help extract your backup file. We will of course be on hand if there are any issues during this process.

Your Xero account is then born and you’ll either need to register for a Xero account or sign into your Xero account; a free trial or paid account is fine. Then click the ‘authorise’ button and connect to Xero. Check the data is being sent to the right place, follow the simple steps and then you’re all set up.

Use A Xero Accountant To Get Paid Faster

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If you hate chasing clients for payment, detest creating invoices and sending them out to your clients and just wish your clients would pay faster then why not speak to a Xero Accountant in Peterborough about how they can help you get paid faster by your clients?

You make like easy for your clients; your products or services add ease and enjoyment to their lives and on top of this you answer their calls within hours, respond to their emails within the day, give them the best price and service level possible and all in all make their lives easy – so why not make it easy for them to pay you too?

Giving your customers an easy way to pay their invoice immediately via a credit card or PayPal for example is all part of customer care and makes things easier for them; when you use Xero accounting it is possible to set up an online payment system to give your customers this ease and reduce the stress of getting you paid.

Research shows that 1 in 5 businesses that use Xero to send their invoices to clients offer an online payment service and on average this means they are paid 50% faster; this works out to roughly 20 days sooner than other companies without an online payment service.

Would you like to get paid 20 days sooner?

This will rapidly improve your cash flow and mean you are able to focus more on your business and plan for the future.

The biggest benefit of Xero accounting and their online payment services is that because you get the payment sooner you spend less time waiting for payment, stressing about payment and making difficult phone calls; you’ll also avoid doing those cash flow contortions too.

If you’d like to know more about Xero Accounting in Peterborough and how you can get paid faster then why not call a Xero Accountant in Peterborough in the team here at Direct peak; we would be only too happy to tell you more.

An Accountant Can Help With Your Business Finances

An Accountant Can Help With Business Finances

By | Blog

When you set up your own business the most common thing people worry about is the business finances. They will often set up a business as they have worked for a company and feel they can do something better, or because they want to sell or produce something they love and are passionate about. Some people set up their own business because they want to make lots of money, sell the business and set up a new business.

Whatever your reason for setting up your own business, it is usually unlikely that you have done it because you love finances and accounting, (unless you are like us and love numbers).

Small business accounting can so quickly become messy, time consuming and unmanageable if you do it on your own because you’re trying to run a successful business and focus on that at the same time. As business picks up you quickly feel like you are losing control and you don’t know who owes you money and who you owe money too, let alone how much is in the bank and how much should be in the bank.

An accountant can help you with your finances and get you back on track. They can help you keep your key business metrics in check such as salaries and other employee payments to create your total revenue. An accountant can also help manage your payroll and produce graphs to show you what your business is achieving.

If you opt for a Xero accountant you’ll be able to share your business accounts with them quickly and effectively. You will also be able to view tables and charts immediately which will show you which clients haven’t yet paid and which suppliers you need to pay. You’ll be able to see expected outgoings and the current status of your account too.

A Xero accountant allows you to monitor the finances of your business and your cash flow at a glance. They will make the ‘financial stuff’ much easier so you can focus on what you do best; selling great quality services and products.

If you are looking for a professional and approachable Xero accountant in Peterborough then please feel free to contact us. We would be happy to meet up and talk about how cloud based accounting in Peterborough can help your business achieve more.

Get Your Accounts In Shape For 2018

Get Your Accounts In Shape For 2018

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Get Your Accounts In Shape For 2018

As the year draws to a close it is a great time for you to focus on the previous year and plan for the year ahead, but unless you have a good grasp of your accounts how do you even know what you are looking at or where you should be spending more or less money?

As Xero Accounts in Peterborough we like to help business owners make the most of their business and their money, so we thought we would share these top tips to help business owners get their accounts in shape for 2018;

  • While it may not yet be financial year end, it does quickly come round, so take the time to go through those sales receipts and invoices while your business is quiet, check them with your bank account to make sure it all matches up. If you have a quality accounting software like Xero you’ll be feeling very pleased with yourself right now as this is already done for you so you’re already a step ahead of the game.
  • Talk to your accountant; as a Xero Accountant in Peterborough myself, I can assure you that we are not scary and we will happy to talk through your accounts with you to give you a rough idea of what your tax may be, any areas for improvement or things to be aware of. We can also prepare to help you save the right amount of money, but also avoid any big and unpleasant surprises.
  • Take the time to look at how far you have come over the last year; has the business grown, how do your revenues and profits look when compared to the year before, are your sales trending up (if you’re using Xero Accounting you can see this on your sales graphs), did your sales expenditure give you any cause for concern and perhaps most importantly; did you achieve your goals set at the beginning of the year?
  • Tax laws and regulations are always changing so now is a good time to see what has changed in the past year and what is expected to change in the upcoming year; give your accountant in Peterborough a call and they will be able to send you links to articles you need to be aware of for your business or industry.
  • The end of the year is also a good time to update your payroll and do things like hand out bonuses, save time by paying employees electronically and review employee status; remember if you get your employee status wrong this can cost you money as you may be penalised by the government.

If you would like to start the New Year with a new Xero Accountant in Peterborough then why not give us a call; we would be happy to have a chat with you about how we can help, what we can offer and why Xero could save you time and money!

When Does My Start-Up Need To Start Paying VAT

When Does My Start-Up Need To Start Paying VAT?

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When Does My Start-Up Need To Start Paying VAT?

As accountants in Peterborough we meet lots of new and start-up business owners that have set up their own business through a passion or a desire; they are amazing at the business services or products they offer, but when it comes to all the other ‘business bits’ there is some confusion.

One of the most common questions we are asked by start-ups is when their business needs to start paying VAT, so we thought we would answer the question in this blog post;

The magic number for VAT is £83k; this means that when your business gets close to a turnover of £83,000 you need to register for VAT with HMRC and begin collecting and paying tax on your eligible products or services.

As a start-up business, a turnover of £83k may seem like a million miles away, but here are some top tips to help you make sure your business is ready for VAT when the time comes.

  • Make sure you keep a close eye on your turnover and regularly check how close your sales are to bringing in the magic number of £83k. If you use cloud accounting or a XERO accountant in Peterborough this will be easy to keep an eye on, and when you are close you can start planning ahead for VAT.
  • Paying VAT for your start-up business will be much easier if your financial processes are working efficiently and giving you the numbers you need, so take the time to do some financial housekeeping, clean up any messy areas and you’ll be ready to roll.
  • While the registration process only takes around 2 weeks it is a good idea to register for VAT as soon as your business turnover is nearing £75 – £80k. The sooner you start with the preparation the sooner you’ll be ready for all the additional admin that comes with VAT requirements – remember that your accountant in Peterborough can help with this too!
  • Make sure you plan your quarterly VAT payments; many businesses opt for a separate account for VAT and then work these payments into the budgeting and cash flow for each quarter as it makes it easier to manage financially.

Some businesses choose to register for VAT as soon as they start up as this shows prospective customers and investors that they’re extremely serious about growth and they want to be a big player in the market – however this can have an effect on cash flow and margins.

If you are unsure if you want to register for VAT or not then give us a call; we would be more than happy to talk through the options that are best for you and your business.