Five ways Xero gives control over agency numbers
Five ways Xero gives control over agency numbers
If you’re running a creative agency or digital media business, we’re going to guess that dealing with bookkeeping and accounts is probably not your favourite part of running the business (yep, we thought so – don’t worry, you’re not alone).
Time spent keying in your expenses, chasing up late-paying clients or trolling through your management accounts might feel like time that’s taking you away from being creative. But if your agency is going to thrive, grow and prosper, it’s vital that you’re in control of your numbers and have a solid financial system to drive your profitability.
At FD Works, we specialise in working with businesses in the creative sector. And we’ve found that Xero online accounting software is the perfect partner for agency owners who want a straightforward, beautifully designed view of their financial health.
So here are five watertight reasons why your creative business needs to make the jump to Xero and cloud-based accounting.
1. Instant, mobile access to your accounts
One of the biggest advantages of Xero is that it’s based in the cloud. You access your accounts through your web browser or mobile device, in exactly the same way that you access Gmail, Facebook or Dropbox – meaning no messing around with desktop applications.
The main benefit of this is that you can access your key numbers wherever you are, at any time. You don’t need to be in the office to check your cash flow, or see if an invoice has been paid – it’s all there on your smartphone or laptop whenever you need the figures at your fingertips.
This instant cloud access also makes it incredibly easy to collaborate with your management team, your business partners or your advisers. You can all log in at the same time, looking at the same numbers, and deal with any issues fast.
When you’re making decisions about the future of the agency, it’s important that you have the most up-to-date information to hand. Xero gives you the ability to get a completely real-time view of your numbers – and that’s a huge boost for your decision-making capabilities.
You get a live bank feed that pulls all your business banking transactions straight through into Xero, along with streamlined bank reconciliation that automatically matches and suggests the bills and invoices to match with your bank statement.
And with a smart-scanning app like Receipt Bank, you can scan in all your bills, receipts and expenses and automate your whole bookkeeping process in one fell swoop – giving you a completely current view of your cash and transactions without any of that tedious data entry and keying in from paperwork.
The balances you see in Xero are 100% up to the minute and live – and that’s a godsend when you need to know your financial status as is stands right now.
3. A whole ecosystem of cloud tools
Xero has a huge and ever-growing ecosystem of third-party cloud tools (Xero Add-ons) that plug straight into your accounting software, Receipt Bank being just one of them.
Whether it’s specialised quotation tools, workflow and project management software, or automated credit control solutions, there’s a Xero Add-on that you can integrate with Xero to expand, tailor and improve your agency’s business systems.
Have a browse through the Xero App Marketplace and see just how powerful these plug-ins can be.
4. A better way to manage your KPIs
Reviewing and managing the performance of your agency over time is one of the key ways to improve efficiency, profits and the overall engagement and productivity of your team.
Xero gives you the ability to track budgets, manage your cash flow numbers and keep an eye on your profit ratios over time. And by coding all your transactions you can put key performance indicators (KPIs) in place to measure every aspect of your sales, spending, customer numbers and finances as they evolve each month.
There’s a great choice of core reports to choose from alongside a dedicated ‘Business performance’ overview that shows you things like your gross profit percentage, your debt ratio and how your working capital is measuring up against your total assets.
5. Amazing control over your financial future
If you combine Xero’s mobile access, real-time reporting, performance management skills and the hugely flexible choice of Xero Add-on tools, you’ve got a pretty formidable system. It’s easy to see why we think it’s the ideal choice for ambitious creative businesses looking for a modern finance solution.
And when you add in FD Work’s bespoke forecasting tools, what you get is a way to review, analyse and predict the financial future of your agency. We can take your Xero data and project your sales, profits or customer numbers forward in time and give you a hugely insightful view of where the agency will be in 6 months, a year or 5 years down the line.
And when you’ve had a peek into the future, it’s far easier to formulate the right strategic plans, make the most informed business decisions and create a stable outlook for the next step in your agency journey.
Talk to us about making the move to Xero
If you’d like to have a hands-on demo of Xero, why not give us a buzz and find out what FD Works and Xero can do for your creative business.
Drop us an email to firstname.lastname@example.org or give us a call on 01454 300 999.