Let’s take for example, subscriptions.
At Inspire, we have about 15 to 20 accounts of subscriptions.
And in the chart of accounts, every account needs a number associated with it in Xero.
To avoid creating a mess of account codes, we would recommend indicating each subscription as:
It’s helpful to keep it consistent in numbering and to also separate each supplier/ subscription.
Similarly, we do this with wages to every single team member,
Most of our account codes will be split by each supplier.
It is a lot of work to set-up initially. But, you can set up rules.
For instance, if I receive an invoice from Inspire Accountants, that will automatically get linked to Accounting-Inspire.
If we get an invoice from Xero, it goes to Subscriptions-Xero.
The set-up is intense, but once you have the systems set-up well, it’s not a huge amount of additional work ongoing.
The clarity that you get from looking at a Profit and Loss statement, you’re going to easily pick up:
This is going to be so obvious if you’re going to be this granular in detail.
Personally, If I was to lump subscriptions in one item line such as the Xero Templates that they give you – I would have NO clarity on every transaction and it’s not going to mean as much to me.
Some of these suggestions might be intense, but they are amazing when it comes to running a business and getting clarity on your budget.
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
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