Every business in the business of making money for their products and services will need some type of accounting software. For The Urban Geeks, we use Xero to meet all of our accounting needs. The three main areas we leverage Xero are invoicing, bank reconciliation, and reporting for taxes.

Invoicing

We don’t do websites for free so it’s important for us to get paid. Xero makes invoicing super easy for us with everything being handled online. They integrate with our two favorite payment gateways – Stripe and PayPal. Next, Xero makes creating invoices hassle free by allowing us to to create repeating invoices as well as manual invoices. Once invoices are ready, Xero delivers them to our customers via an email that contains a pay link. Notifications for upcoming and past due invoices are automated as well so I don’t have to remember to send emails to clients when they have not made payment.

Bank Reconciliation

Xero also simplifies bank reconciliation. We simply have connected to our checking account, credit card, PayPal, and Stripe accounts. As transactions occur in the above accounts, they are synced with Xero. Once in Xero, we categorize the transactions to ensure we accurately account for all income and expenses.

Reporting and Taxes

Finally, with transactions reconciled, Xero truly simplifies our reporting especially for taxes. At any time, we can review a number of reports to know how healthy our business is running. Those reports come in handy during tax season as I’m able to print off a couple of reports and hand them directly to my account to complete our taxes.

All and all, Xero is another indispensable software tool that we couldn’t live without! There are other options out there like QuickBooks and Freshbooks. It’s really up to you find the tool that works best for you and your budget. Once again, get the right tools to run your business so that you can spend more time doing your business.

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