Xero – Your best friend for keeping track of your finances when self employed


When you start out on your self employed journey there’s no doubt that keeping track of the incomings and outgoing of your money is going to be your top priority in the early days.

Money is usually very tight during that period and it’s important that you always know where ever pound you have available to you is.

In the past we used to have to rely on spreadsheets stored on your computer (or an Abacas before that!) which you could only ever access when you were in the office.

Xero is a multi platform accounts package that is ideal for any startup business and allows them to get right to the information they want no matter if they are on a laptop, a tablet or even a smartphone! There’s nothing to install locally on your computer and all upgrades to their system are FREE

Anyone that runs any kind of small business will know that one of the most important parts is invoicing customers. I remember 12 years or so ago I used to run a ‘one man band’ ICT Repair company going around and fixing peoples computers at home actually getting paid was a complete nightmare. It was either a case of cash or giving someone my bank details to pay me. Thanks to Xero those days are behind you as you can use their smartphone app to send a directly payable invoice to the customer who can then pay you directly. I actually saw this in use last month when someone came to our house to do some repairs on our electrics and used the Xero smartphone app to send me an invoice instantly for payment while where in my house. This is a far cry from the ‘I’ll pop an invoice through your letterbox in a few days’ that I was used to when dealing with tradespeople.

A lot of people reading this will be eBay or Amazon resellers and Xero integrates with both services so you can keep track of your inventory levels, who has paid for what and how much profit you are making across the various platforms at any point. The advantage of using Xero is that instead of having to look in two different places to see your reselling finances Xero will show you everything in one dashboard in an easy to read broken down fashion.

Xero also integrates with a few different payment gateways, so I don’t ever have to worry about my details being stolen or something which is always a worry. You can’t be too careful these days with your bank details, and Xero makes payment a lot less stressful.

 

As you can see above Xero is available to 3 different price points depending on your needs. It starts at £10 a month all the way up to £27.50 a month. To be honest for most self employed ‘one man band’ type businesses you will find the £22.50 a month package to give you everything you want (at least that’s what I found!).

There’s no doubt that the ability to see your finances on the go is something we expect from our personal banks so having that ability to see the same level of detail (if not more ) from our own business can really give you the upper edge compared to your competition.

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