30 Sep 10 Xero Features That Save Small Businesses Time
Running a small business often means switching between sales, customer service, projects, staff, suppliers and finances. If you are also spending hours entering transactions, chasing invoices or searching for receipts, it can feel as though the admin never ends.
Xero can help reduce that pressure. Its cloud-based tools automate many routine accounting tasks and give you a clearer view of your finances. You can also give your accountant or bookkeeper access, making it easier to work together in real time.
As Xero Cloud Experts with Platinum Champion status, Harrison’s Accountancy can help you choose the right features, set them up properly and make sure your records remain accurate.
Here are 10 Xero features that can save small businesses time each week.
1. Bank feeds
Connect your bank once and reduce manual data entry every week.
Xero can connect to your business bank accounts so transactions flow into your bookkeeping automatically. Instead of downloading statements and typing each payment into a spreadsheet, you can review the imported transactions and reconcile them within Xero.
This can help you:
- Keep your records more up to date
- Reduce repetitive data entry
- Spot missing or unusual transactions sooner
- See your available cash more clearly
- Work from current information when making decisions
Xero can also suggest matches between bank transactions and invoices or bills. You can then accept the suggestion, find the correct match or create a new transaction.
You can learn more about Xero bank connections and bank reconciliation.
2. Bank rules
Set up rules for regular transactions so Xero can handle routine categorisation.
Many businesses have payments that happen regularly. These might include bank charges, software subscriptions, rent, telephone costs or regular travel expenses.
With bank rules, you can tell Xero how to categorise transactions based on details such as the payee, amount or reference. When a similar transaction appears, Xero can suggest the relevant account and VAT treatment.
You should still review your transactions rather than accepting everything automatically. However, well-designed rules can make regular bookkeeping much quicker.
For example, a monthly payment to a software provider could be assigned automatically to software costs. You would then only need to check the transaction and approve it.
If you are unsure how to set up rules, ask your accountant to review them. An incorrect rule can create errors across several transactions.
3. Repeating invoices
Automate regular invoices instead of creating the same invoice from scratch each month.
If you charge the same customer a regular amount, Xero can create repeating invoices based on a schedule. You can choose the frequency, start date, payment terms and customer details.
This is useful for:
- Monthly retainers
- Ongoing consultancy
- Subscription-style services
- Regular maintenance agreements
- Rent or licence charges
Repeating invoices reduce the risk of forgetting to bill a customer. They can also help create a more consistent invoicing routine.
Before setting one up, check that the amount and description are correct. If your prices or services change, update the repeating invoice template promptly.
4. Automated invoice reminders
Let Xero follow up unpaid invoices so you do not have to chase every customer personally.
Late payments can create unnecessary stress, particularly when you are trying to manage cash flow. Xero allows you to set up automatic reminders before or after an invoice becomes overdue.
You can customise the wording and timing of the reminders. A typical sequence might include:
- A friendly reminder shortly before the due date
- A follow-up on the due date
- Further reminders if payment remains outstanding
This does not replace a personal conversation where a customer has a genuine issue. It does, however, reduce the time spent sending routine payment chasers.
Xero also lets you view invoice statuses in one place, making it easier to see which invoices are paid, outstanding or overdue. Its online invoicing tools can also support online payment options, depending on your setup.
5. Xero Projects
Track time, costs and profitability by project instead of relying on separate spreadsheets.
If your business works on client projects, Xero Projects can help you bring key information together. You may be able to track time, record costs, compare work against a budget and invoice from the project information.
This can be particularly useful for:
- Consultants
- Creative and media professionals
- Agencies
- Contractors
- Developers
- Professional service firms
For example, you could record time spent on a client assignment and compare it with the amount quoted. That gives you a clearer view of whether the work remains profitable.
Project functionality depends on your Xero plan and setup, so check the current Xero pricing and plan information before making a decision.
6. Mobile app and receipt capture
Capture receipts when you receive them rather than leaving them in a drawer or email inbox.
The Xero Accounting app allows you to manage certain tasks from your phone or tablet. This is helpful when you are travelling, working away from your desk or meeting clients.
You can use mobile tools to:
- Review transactions
- Check invoices
- Capture receipts
- Record expenses
- Keep documents with the relevant transaction
Xero’s smart document capture tools, including Hubdoc where available through your setup, can help extract information from bills and receipts. You can then review the details before they are added to your accounts.
A good habit is to photograph a receipt immediately after a purchase. This saves time later and reduces the risk of losing evidence for a business expense.
7. Reports, dashboards and cash-flow forecasting
Use current information to make decisions without building every report manually.
Xero provides a range of reports and dashboard views that can help you understand how your business is performing. Depending on your plan and configuration, you may be able to monitor:
- Income and expenditure
- Outstanding invoices
- Bank balances
- Profit and loss
- Key performance indicators
- Short-term cash-flow forecasts
A cash-flow forecast can help you look ahead rather than simply reviewing what has already happened. You might identify an upcoming VAT payment, payroll commitment or supplier bill before it becomes urgent.
The quality of the information depends on keeping your accounts up to date. Regular bank reconciliation, accurate invoices and properly recorded bills all contribute to more useful reporting.
For more detailed support, our management accounts service can provide reporting on a weekly, monthly, quarterly or six-monthly basis.
8. VAT return preparation and submission
Reduce the time spent pulling figures together for Making Tax Digital VAT returns.
If you are VAT registered, Xero can calculate VAT information from the transactions recorded in your accounts. You can review the return and submit it to HMRC from within the software, subject to the appropriate setup and checks.
This can help you avoid:
- Re-keying figures into another system
- Searching through multiple spreadsheets
- Missing relevant transactions
- Leaving the return until the last minute
However, automation does not remove the need for review. Transactions must be categorised correctly, and unusual items may need professional consideration.
Read more about submitting VAT returns online with Xero or speak to our team about VAT return support.
9. Payroll integration
Connect payroll information to your accounts and reduce duplicated work.
Payroll is time-sensitive, and mistakes can affect both your staff and your compliance obligations. Xero can work with payroll tools and integrations to transfer payroll information into your accounts.
Xero’s UK payroll offering can also support Real Time Information submissions to HMRC after each pay run, depending on your chosen setup.
Integration can reduce the need to enter payroll journals manually. It may also give you a clearer view of total employment costs when reviewing your monthly figures.
If you prefer to outsource payroll completely, Harrison’s Accountancy provides a payroll bureau service covering payslips, HMRC submissions and pension auto-enrolment administration.
10. Multi-currency accounting
Manage overseas customers and suppliers without maintaining separate currency spreadsheets.
If you invoice clients or pay suppliers overseas, multi-currency features can save time by recording transactions in the relevant currency and applying exchange rates within Xero.
This can help you:
- Send invoices in a customer’s currency
- Record foreign supplier bills
- Monitor balances more easily
- Reduce manual exchange-rate calculations
- Keep overseas transactions within the same accounting system
Multi-currency is generally available only on certain Xero plans. It is also important to understand how exchange-rate movements affect your accounts and tax records.
How much time could Xero save your business?
Start with the tasks that cause the most repetition or anxiety.
You do not need to activate every feature on day one. A sensible approach is to identify where your time is currently going:
- Are you entering bank transactions manually?
- Are invoices being sent late?
- Do customers need repeated payment chasers?
- Are receipts difficult to organise?
- Are you unsure how much cash will be available next month?
- Are you maintaining separate project or currency spreadsheets?
Start with one or two improvements, then build from there. The right setup should make your accounts easier to maintain, not add another layer of confusion.
Harrison’s Accountancy is an award-winning team of fully qualified UK Chartered Accountants and Xero Platinum Champion specialists. If you are drowning in accounting admin or feel anxious about getting Xero set up correctly, contact us for a friendly, no-obligation discussion. We can help you create a practical system that saves time and gives you more confidence in your numbers.
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