In Part One, we introduced the alternative to the shoebox full of receipts: cloud-based accounting, and Xero in particular. In Part Two, we shared the habits you need to adopt to make the most of your new ‘shoebox’.
And now that you’ve made those two shifts towards adopting a more effective and efficient approach to your business finance, it’s time to abandon the shoebox mentality altogether.
We of course realize the irony that we’ve asked you to replace your literal shoebox with a metaphorical one, and now we’re asking you to forget all about it as a concept. But if you’re going to address your business finances in a powerful way, there’s more to it than simply filing receipts and expenses.
The Shoebox Is Holding You Back
For many small business owners, the leap from ‘just getting by’ to ‘profitable and organized’ can seem a step too far. But the truth is, it’s really not the chasm you might think. Incremental change can get you closer, and by switching to Xero, you’ll have the tools and data you require to grow and develop your business.
However those tools and data will only take you so far. You need to develop a more nuanced skillset when it comes to managing your business finances. And you need to accept that the ‘shoebox’ mentality is holding you back.
Developing the Right Mindset
We’ve already mentioned that filing your receipts in the first place (even if it’s just putting them in a shoebox) is a terrific habit to have. But in order to take your business to the next level, you need to develop the right mindset with regards to accounting.
What we mean by this is, you need to stop thinking about the accounting and record keeping process as simply something you’re obligated to do. Of course, you need to keep accurate records so that you can file accurate tax returns, but the data you’re collecting has other important functions.
For starters, you can use it to make informed decisions regarding the direction of your business. And thanks to Xero’s real-time data, you can make those decisions faster than ever before. You’ll become a proactive business leader, rather than a reactive one.
So, to start developing this mindset, we recommend you do two things:
- Begin speaking with your accountant regularly. Ask questions, discuss ideas, and make sure you fully understand the numbers on the screen.
- Make sure you’re reading the summary reports on Xero, which will give you an idea of what’s in the ‘shoebox’ at any given time.
The days of digging through a pile of mismatched information are over; start using this categorized and organized information to the benefit of your business.
Ready to Take the Leap?
If you’re ready to leave the shoebox behind and embrace the world of cloud accounting and Xero, we can help. Our friendly and experienced staff are only a click or a phone call away.
Click here to learn how Polay+Clark can get you up and running with Xero in no time at all.