Why using a Xero add-on expert could save a great deal of cost and delay

BookCheck has been providing book-keeping with management accounts for a lovely client in Bristol for three years. Our relationship is close, appreciated and satisfying.

About a year ago we considered with the client the case for a move to Xero which was actioned. The client decided for themselves the add-on for stock control and order processing. They declined our fixed price proposal to setup the add-on and fully onboard the data, also rejecting a half-way house of working alongside them. As professionals we warned them of the possible consequences.

The client gave us the go ahead to run the migration which was completed successfully, whereupon the client indicated that they weren’t ready on their side. A short delay would not have been a problem however the client delayed and delayed, ending up six months late. The client was forced to run the Xero system in parallel with the old Sage, simply to obtain the stock and order-processing facilities. This dual running doubled the book-keeping costs for all that time before the add-on was ready and the old Sage equivalent could be stopped. To make matters worse, the add-on not was not setup correctly by the client on Xero, causing a lot of extra work.

The estimated overall extra cost incurred by the client was £8,000 plus a great deal of hassle.

This entry was posted in Accounting, Business Development and tagged in Xero, add-ons by Caroline

Nice, neat rubbish numbers - ready for a Xero HealthCheck

We all know the importance of producing sound quality management accounts - measuring is the start of improving profitability. There they are - nice, neat numbers but how sure are you of the quality? Is it sound? Does the bank reconcile? Is the PAYE balance correct? What’s in the suspense account? Does it correctly incorporate opening balances from the previous year? What’s the quality of the purchase ledger balances and the sales ledger?

These questions are relevant to all reporting but it may be that your checking procedures are not good enough or maybe there aren’t any. This directly risks the integrity of the information. If you’re going to use the accounts to take action to improve your profitability, surely what it’s all about, then it’s essential that your data is sound, otherwise your profitability will be directly affected.

For example, when looking at your Balance Sheet you probably assume that the bank reconciles. We’ve lost count of the systems we’ve checked where the bank doesn’t reconcile. That is usually associated with major quality questions over the whole accounting. In turn that directly affects reporting of your profitability and performance. Your assumption is that the book-keeper knows what they are doing – but do they?

Usually the book-keeping is in the hands of just one person. That book-keeper may be friendly, punctual, efficient, even professionally qualified however that proves nothing about the quality and state of reconciliation of the accounts. Everyone in the business will assume that all is well unless there is a fire but is that safe? It’s likely that no one in the business is really able to or is measuring the quality of the accounts. That is taking an unnecessary risk.

So how can this exposure be dealt with. Someone else in or outside the business, someone who knows what they are doing, should check the quality. In our opinion it's safest to use a qualified accountant - that need not cost much as it's a quick exercise for a professional and it’s only a one-off task.

Contact us by clicking on the picture for the full size version.

The sample shows the sort of detail that is covered. The 30 traffic lights make it easy to focus on areas that need attention. It’s all on one page and is very easy to understand.

The Benefits of a Xero HealthCheck

  • improves the quality of the management reports
  • reduces the risk of wrong numbers
  • easy to understand traffic light status
  • saves unnecessary cost at the Year End

Extra benefits of Outsourcing the Xero HealthCheck

  • access the required skill set of a professional
  • discreet, confidential checking of a book-keeper's work
  • independent

Good times for a HealthCheck

  • before the first set of management accounts are produced
  • when there is any sort of doubt about the book-keeper
  • before issuing ‘special’ accounts e.g. an application for bank funding

A Xero HealthCheck is quick and easy, so no excuses!