Home' The Channel Magazine : National Newsagent March 2015 Contents FINANCE
Beautiful accounting software
Why Xero? We’re glad you asked.
From baking to bricklaying, consulting to crafting – whatever
keeps you busy, Xero makes your business life easier. Xero
is online accounting software that connects you with your
numbers, your business and us, your advisors. Anytime,
anywhere from any device.
The top 5 reasons why small businesses choose Xero
1. Accounting and payroll in one – Xero is all you need to run your business.
2. Bank statement lines are automatically fed into your Xero account.
3. No need to install software, updated or keep backups – it’s automatic.
4. An ecosystem of 300+ Add-on applications to manage your business
5. Unlimited collaboration with your staff and trusted advisors.
Rachel and Bridget are amongst the
thousands of small business-
owners across Australia enjoying
the benefits of Xero:
“#Xero is amazing – total control is
just a click away!!!!”
“Xero has really cut my accounting
time by 80%. It gives me
goosebumps thinking about all that
extra time I have.”
– Bridget Labus, Retail
Call us today at Paragon BDS to discuss how Xero
can revolutionise the way you do business!
Ph: 1300 361 346
Integrated solutions assist in transferring information from
one system, such as your point-of-sale software, to another
system, such as the accounting package. Most newsagents
will have a point-of-sale system that handles the daily
transactions. It will collect data such as cost price, sale price,
stock inventory and it will record all receipts of stock and
sales. These systems then usually pass that information into
an accounting system for analysis and integration with other
data. It is at this point that double-ups and inefficiencies can
creep in if the integration requires your manual intervention.
Ask yourself, do you enter data into the POS system and then
have to re-enter them into your accounting system? Does
your POS system impose inflexible end-of-day routines with
time deadlines and an inability to correct? Do you manually
have to export the data from one system and import it into
another? Or worse, do you have to key in from your POS
system reporting into your accounting system?
Seamless and automatic
Whenever two systems need to communicate it should be
seamless and automatic. There should be no need for daily
intervention from you or your staff. Every time you have to
intervene with an integrated computer system you introduce
the potential for error.
There are systems on the market, such as Xero, that fully
integrate with POS systems.
It doesn’t matter whether it is your POS system or your
accounting system that does the analysis but what does
matter is that the reports are easy to read and contain
accurate, useful and timely information. Your system should
provide you with information relating to sales trends and
trends in product costs as well as important information
about stock levels including alerts when stock is getting low.
It should also give you good accounting reports such as
profit levels and comparisons from one period to the next. An
analysis of stock levels can be undertaken—too much stock
on the shelves is as inefficient as not enough stock. Ordering
too many times per year can be costly from a freight point of
view, ordering too few times per year can be costly from a lost
sales point of view.
Compare sales with wages and rents
The stock and sales information held in your POS system
ends up in your profit and loss as part of the performance
reporting for your entire business. It is here that you can start
to analyse the effect of overhead costs on your product sales.
There are benchmarking reports available to assist you to
determine if your wages are too high compared to your sales
levels, or if your occupancy costs such as rent and rates are
too high compared to turnover and so on. You can also use
your own comparative information to benchmark against
yourself. What were the levels of sales and how many times
did your turn your stock over in the most profitable year you
have had. Compare that to the current year. What were the
expense levels like in that benchmark year compared to
the current year or the year just completed? What have you
introduced that has been profitable and successful and at the
end of the day how much profit did you make to support your
standard of living from your business? Was it worth getting
out of bed each day?
Cash flow management
Cash flow management will be supported by these systems
as well. Do you know what your cash requirements are for the
next 30 days? Do you know if customers owe you money and
for how long they have owed it and are you aware of potential
taxation cash flows including GST? All the information you
need to answer these questions is stored in your accounting
and POS systems but you must be able to retrieve it
Successful systems and processes streamline the accounting
function and allow you to spend your time running your
newsagency and enhancing your business. Cloud solutions,
such as Xero, add another level of efficiency by removing
the need for heavy computer hardware and allowing you to
access your data anywhere and to easily share it with your
Ph: 1300 361 346
Cloud and integrated
By Karen Gambles, Xero
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