Financial Advice for Construction Companies
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Why You Should Use Xero for Your Construction Business
You probably started your construction business because you had the vision to see a future where you made your own choices and picked your own path. You will also have had a firm and solid bedrock of skills needed to carry out the work, manage clients and maybe employ and manage other tradespeople.
What you may not have at your fingertips is the experience to manage your books and accounts, even less so to choose the right accounting software. Fortunately, that’s our sweet spot! We’ve got years of experience, not just with accounts and accounting software, but also of the construction industry. We know a thing or two about this, so if you want to know why we think Xero is the best cloud accounting software and what you can expect it to do for your business, then read on.
The main reasons for using a cloud accounting software are to improve your cashflow and ultimately to save time and money. So how does Xero help you to achieve those goals?
The first thing you’ll notice is how easy it is to connect Xero to your bank. This means you will be able to feed your transactions directly into Xero every day, without you having to do a thing beyond the initial set up and some housekeeping from time to time. The benefit will be even more noticeable when you are able to keep track of your inflows and outflows easily. You’ll also have up to the minute information on your invoices, bills, payments, credit card accounts and bank balance -all at the touch of a button. The accounting dashboard makes all this data easy to understand and you can use the various graphs and charts available to find the best way to view for your needs.
After your initial time investment in setting up (which we will help you with) and finding your way around Xero, the second thing you will notice will be the time you save and the impact this has on your productivity, and ultimately on your profitability.
Well then, you’ll love the invoicing system that makes it easier and faster to invoice your customers and for them to pay you more quickly. You’ll be amazed at how Xero integrates with other platforms, such as the construction management software you already use to project manage. All these systems will enable you to streamline your processes, reduce any errors and so save you time and money.
In addition to the benefits of time and money savings and understanding your finances in real-time, the cumulative result is that you have real control. For some businesses, especially small businesses, this may be the first time that you have felt this way. And this is how it feels:
So, in a nutshell, here are 8 reasons to love Xero
1. That Dashboard!
Construction companies and builders love the intuitive dashboard. It allows easy tracking of overall financial performance at a glance. You can also drill down into all the detail you crave: invoice tracking, payments, credit cards, and create customised graphs and reports that deliver what you need to know, when you need to know it. Xero can bring together all your business’ essential information in on place and simplifies searching for information from contacts to transactions. It’s like the office manager you never had!
2. It Goes Where You Go
Downloading the Xero app on your mobile or device, means your financial information is as mobile as you are. Not only does this mean you’ll find it easy to approve expenses, and input receipts. But you can send those quotes and invoice on the go as well, helping to speed up cashflow and win work. Managing your day to day accounts has never been so easy.
3. Your Bank is in Your Pocket
Xero means you can connect to your bank and ensure your bank transactions are fed directly into the software each business day. So, you can keep up to the minute monitor of your incomings and outgoings and reconcile your transactions.
4. Oh, the Invoices. . .
Using Xero to invoice your clients means everything is done online. Faster invoicing equals faster payments, and your records will be cleaner, easier to understand and always up to date. In addition, Xero offers you the ability to customise your invoices, so you maintain your business’ identity by using your logo and branding theme (if that’s a thing for you). So, your invoices can project the professional image you need to stand out. You’ll also be able to set up online payment options for ease of payment and automatic reminders for your more forgetful customers!
5. Xero Loves Integrating
Most likely you already use software to project manage your jobs, like BuilderTrend. Xero loves integrating with other platforms like these. Integrating your Xero account with the other platforms you use every day will streamline your processes even more, minimise errors and save you time and money.
6. Xero Loves HMRC
Xero is compliant with HMRC’s rules of CIS and will make life easier for you by automating the collection of taxes from subcontractors. As you know, contractors must report to HMRC monthly giving details of all subcontractors that have been paid. With Xero, expensive mistakes in this area will be a thing of the past.
7. Hackers Hate Xero
Xero is in the cloud, so it runs routine online backups of all your business information. The back-ups are encrypted and stored in multiple cloudy locations. So, your data is always safe and secure and available for you to access whenever you need to. Its two-step authentication procedure offers you complete data security. You just have to remember it!
8. It will Improve your Relationships!
Seriously! The contacts address book allows you to view a customer’s or supplier’s sales history and email exchanges, helping you to drive more business and make informed decisions. By enabling you to nurture your customer and supplier relationships, Xero can play a key role in generating and identifying new opportunities. It might even improve your relationships at home, by freeing up your time and easing your stress load, but we can’t offer guarantees on that!
We hope that’s convinced you that Xero is the right accounting software for your construction business. If so, contact us now! We’re Certified Xero Advisors and we can give you the best advice on how to make the most of Xero for your business.
Still not sure? Then get in touch for a no obligation chat about your needs.