Budgeting is an important skill for small business owners, but it can be time-consuming and stressful. Fortunately, there are tools and software that can make the process easier and more efficient. One of them is Xero, a cloud-based accounting platform that offers a variety of features to help you plan, track, and manage your budget. This article explains how Xero can help small businesses budget in six ways.
create a realistic budget
Xero allows you to create income and expense budgets based on historical data, forecasts, and goals. You can also set up different scenarios to compare expected and actual results and see how changing assumptions affect your bottom line. Xero also allows you to import and export budgets from Excel, so you can use your preferred format and tools.
monitor cash flow
Cash flow is the lifeblood of small businesses, and Xero helps you track it with dashboards and reports. See your bank balance, bills, invoices, and expenses at a glance, and receive notifications when action is required. You can also create cash flow statements and forecasts to see where your money is coming from, where it’s going, and how your budget will affect your cash flow.
track performance
Xero helps you track your performance against your budget with reporting and analytics features. Create custom reports to see how your income and expenses are distributed across different categories, projects, locations, and time periods. You can also use Xero’s Business Performance Dashboard to view key financial metrics and metrics such as gross profit margin, net profit margin, and return on investment.
collaborate with your team
Xero makes it easy to collaborate with your team and advisors on the budgeting process. You can invite an unlimited number of users to access his Xero account and assign them different roles and permissions. You can also share budgets, reports, and comments via email or online. Xero also integrates with other apps and tools that can improve your budgeting workflow, including: Examples: Google Sheets, Float, Spotlight reports, etc.
Automate your trading
Xero saves you time and effort by automating transactions and reconciliations. You can connect your bank account, credit card, PayPal, Stripe, and other payment services to Xero to automatically import and match your transactions. You can also set rules and schedules to categorize and allocate transactions according to your budget. Xero also supports multiple currencies, tax rates, and regions, making it easy to process international transactions.
Adjust your budget as needed
Xero helps you adjust your budget as needed to reflect changes in your business environment and goals. You can edit, copy, or delete budgets at any time and see the impact on your reports and forecasts. You can also use Xero’s tools to plan for various scenarios such as growth, downsizing, and unexpected events. Xero also ensures your data is safe, so you can access your budget anytime, anywhere.
