Since the start of e-commerce and a continually growing amount of online businesses, the various innovative options for handling an online administration have been booming as well. One of these successful software companies is named Xero: an online administration solution that offers easily accessible accounting software for entrepreneurs all over the world. Especially online webshops benefit from their approach, since doing your administration online is exceptionally easy with this brand. Intercompany Solutions has chosen to become officially Xero certified, which means that we can offer you a seamless connection between your administration and ours. We will outline some benefits of Xero in this article, especially in combination with our administration services.
What is Xero and what do they offer?
Xero can be described as online accounting software, that handles all financial and tax related tasks with one solution. You can compare it to standard accounting software, with the difference that Xero operates online. This is extremely efficient because a lot of entrepreneurs are often on the go, and don’t always have access to company PC’s or notebooks. Due to Xero being online software, you can access it with every device that has a connection to internet. The software also connects directly to your bank, making swift transactions possible.
Xero allow you to access various documents such as in- and outgoing invoices, your contact list and all your accounts online, wherever you are. It also allows for online collaboration, for example by inviting your financial advisor in. This entails accessing real time information at the same time as colleagues and partners, the option of leaving comments and discussing business data in real time. If you have any employees, the software also allows them to submit expenses in real time, for example when they are at a restaurant. You can customize Xero to suit your exact needs, in relation to the size and preferences of your company. Since Intercompany Solutions also works with Xero, we can simplify the entire administration process for both your company, and ourselves, by using this software.
Elements of a solid business administration
If you want to use a specific tool for your (online) administration, there are multiple factors to hold into account regarding Dutch fiscal and tax laws. An administration needs to entail several mandatory sections and features, in order for you to always have everything you need in one tool or app. Below we will outline the most common parts of an administration, which you should have sorted out in a proper administration at all times.
Receiving, sending and storing invoices and quotes
One of the most important parts of any administration is the in- and outflow of money. Thus, you need a system that tracks and pays bills on time. But you will also need to be able to link invoices, clients and transactions. Make sure you choose a system that simplifies these actions, since there will be plenty. This will enable you to have a clear overview of accounts payable and the general cash flow. Next to that, also look for a system with design options regarding invoices and quotes. That way, you can create everything via one software package.
Being able to track all current and past projects
Accounting software should be able to link certain documents and actions, such as quotes, invoices and the total project development. With a system that links this information, you can easily keep track of the total costs, profitability and timeframe of any project within your company. If you have several active projects at all times, this will prove to be an invaluable tool.
Claiming employee expenses
Employee expenses can be messy at best. If you want to keep real time track of all the costs employees make at your expense, software that allows this will prove to be a major benefit. It should also be possible to submit, approve and reimburse employee expenses claims, preferably also in real time.
A good connection to all banks
A massive pro is any system that handles bank operations (almost) in real time. Otherwise, you risk having to wait several days, until transactions even start. With solutions like Xero it’s possible to connect your bank to them and set up bank feeds. All transactions will flow securely into Xero each business day, this way. It is also possible to categorize your bank transactions, in order to keep a healthy overview.
Company contacts and business details
Any normal administration contains, at the very least, basic information of all the contacts the company has. If you want audits to run smoothly, it’s necessary to have everything in the same place and easily traceable. It should be easy to look up a customer or supplier, to see a full history of sales you and them were involved with, plus be able to access emails, invoices and payments as well as contact details.
A solid database of all important files and documents
If you don’t like keeping a physical database of files, being able to digitally store your documents is a must for any good accounting software. That way, you can scan every document involved with your company and store it safely for easy access forever. Some programs even offer the option of not having to enter any data manually anymore, which might save you a lot of time.
It is very important to track everything you do, especially fiscally and financially. You will need to create various accounting reports periodically for tax purposes, as well as eventual audit possibilities. Especially in the Netherlands, it is very important to keep track of your administration and always being able to provide proof.
Logistics and inventory control
If you own a webshop, you will know that having control of and access to your current inventory at all times is a basic necessity. This means, that especially webshops need a real time solution that keeps an inventory up-to-date indefinitely. Any stock changes can have crucial effects on your store availability. Keep track of what’s in stock with solid inventory software. This option should also link to invoices paid and sent.
Multi-currency accounting possibilities
If you are an online entrepreneur, for example in the field of e-commerce, you will inevitably deal with customers from all corners of the world. This means that you will also have to deal with plural currencies, which is made substantially easier by good accounting software. Look for tools that allow payment in many countries, including current exchange rates and instant currency conversions.
Analytics options are a necessity too
If you also like to look into the future of your company, an analytics function is definitely necessary. This will allow you to analyze possible future cash flow, link it to current projects, always be able to check your company’s financial health and also track metrics. This also simplifies the calculation of the equity of current, as well as future, projects.
Intercompany Solutions is your administration partner in the Netherlands
If you want to partner up with a Xero certified financial and administration professional, then our firm can provide you with all the assistance and solutions you need. From the registration of a Dutch company, acquiring a VAT number and bank account, to assisting you with the administrative and financial services we provide. If you would like to receive more information about our services, or a personal quote, please do not hesitate to contact us directly. Our team is always happy to provide advice.