Businesses today are getting more complicated since there is so much critical data that needs to be handled effectively. As a result, inventory management and accounting software have grown in importance for all businesses. Inventory management software helps maintain inventory health and precisely track all shipments and orders, while accounting software sets out the company’s present financial situation. These two distinct organizational components can be combined and merged for improved overall management.
Inventory management setup with accounting software gives businesses a competitive edge by lowering risks, automating tedious operations, and cutting costs. One such cloud-based accounting program that interfaces with your inventory control system without difficulty is Xero. In this article, we will explore the four major benefits of combining Xero with DEAR.
Key benefits of integrating Xero with DEAR
1. Invoices
Invoicing is an essential business process. Paper-based invoice management is laborious, time-consuming, and prone to mistakes. It is impractical to print actual invoices for every order a client makes when you have recurring orders. It is also challenging to keep track of invoices and notify clients of unpaid bills without automated tools.
Xero offers tools that make invoicing simple and efficient. For recurrent orders, you can set up recurring profiles and schedule invoices to be sent out automatically each time an order is placed. To let your consumers know how to pay, you can also include payment terms and conditions in your invoices. You can automate your payment reminders with Xero. The software will automatically send reminders to your clients depending on the invoice due dates or anticipated payment dates that you specify. By monitoring all of your sales and unpaid invoices, reminding clients to make their payments on time, and minimizing unintentionally missed payments, Xero helps you keep ahead of the bills. Additionally, depending on the setup choice, all payments and refunds created in Xero can be exported/imported from DEAR or synchronized both ways.
2. Expense tracking
For control over your cash flow, keeping track of your expenses is essential. To gain a clear view of where your money is going, you may track your expenses—including B2B payments—and categorize them with the aid of Xero. You can easily upload expense receipts to Xero, scan them, and have the software automatically enter the data from the scanned receipts. As a result, there is no longer any need to store paper receipts or worry about losing them.
Furthermore, Xero makes it simple to keep tabs on employee spending done on your behalf and track expenses with precise reports. For instance, you can file a mileage claim to get paid if you or an employee drives your own car to work. Utilize the mileage tracker to keep track of your expenses and gain the knowledge you need to make more informed financial decisions. This will provide you with up-to-date information to forecast and budget your costs.
3. Bank reconciliation
Bookkeeping software accelerates bank reconciliation, a crucial aspect of a company’s accounting. You can automatically download bank statements into your accounts by directly connecting your bank account to Xero. Custom criteria and bank rules can be put up to automatically classify and match imported bank transactions.
Account reconciliation is made simple by Xero, which proposes matches for transactions, categorizes them, and applies rules. To reconcile your accounts, you only need to confirm and validate your matched transactions. Throughout the year, Xero helps keep your company audit-ready with its streamlined bank reconciliation.
4. Reporting and compliance
As a business owner, you must regularly assess your company’s progress and take the appropriate actions to maintain the health of your company. You can study growth patterns and comprehend financial trends in your company with the aid of accounting reports. However, creating reports in spreadsheets is a lot of work because you have to combine data manually and enter formulas for each report. You can save time and work by using Xero to generate reports automatically. You can alter reports to better comprehend the important financial facets of your company, draw conclusions, and make wise choices that will move your company in the proper route.
A competent accounting app is also made to comply with local tax laws and make dealing with taxes simpler. Accounting software can help you apply the appropriate tax to your transactions more precisely and quickly when you have to deal with several tax rates. You can create as many sales tax rates as you need in Xero. In order to keep you organized and prepared for tax season, it may also assist you in comprehending your taxes by providing sales tax reports.
Manage your inventory and accounting from anywhere, anytime
Every step of your business requires accounting, and a decent accounting program like Xero can help you manage your inventory, reconcile your bank accounts, and stay in compliance with tax laws.
DEAR becomes the hub of all inventory management for your business after integrating with Xero. Accordingly, all manufacture, sales, and acquisitions involving inventory will be carried out in DEAR Inventory before being synchronized to Xero. Since Xero and DEAR are both cloud-based, you are not constrained to a single computer and can manage your inventory and accounting anytime you want, from wherever you want. You can access Xero accounting software on your smartphone without needing to install any software or do any IT maintenance. DEAR Inventory reduces the pain of manual data entry by effortlessly integrating inventory data with Xero.
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