Keeping up to date with Xero – Budgeting!

Xero have been working hard releasing lots of new features so you could have easily overlooked a few of the developments.

Budgeting 
Even just the word can evoke a sense of foreboding for some business owners, however monitoring your business and setting a plan is an essential part of any business plan.

Yes there are still going to be crystal ball gazing moments, but a lot of it will be based on a prudent, common-sense approach.

So what does Xero have to help the situation? 

Xero’s simple to use budgeting tool that can let you track your actual results against forecasted results.

  • Its fairly simple, so don’t expect a lot of complexity
  • Apply simple aging formulas to project growth or reduction in costs
  • Export and import from spreadsheets (CSV) for more complex budgets
  • Set multiple budgets to track different operating areas of your business

 You can then run actual results against your budgeted projections, asking yourself along the way “why did that perform better than expected?”, “I had better keep an eye on those costs that seem to be running away”and so on.

The more often you do this (and it should be part of your monthly process) the better understanding you will have of growing your business DYNAMICALLY.

You should also consider the benefits of

 A forecasting tool and key performance indicator (KPI’s) tracker that integrates with Xero. It will save you wading through the figures and provide clear visuals on your performance

For more information contact a Xero Hero at the BDO Rotorua office.

www.bdorotorua.co.nz

P: 07 347 9087   I   F: 07 3486685   I   E: rotorua@bdo.co.nz 

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