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Xero as well as QuickBooks Online are two of the most well-known and effective accounting software options for small-scale entrepreneurs. While both are able to aid in managing complex processes such as billing, invoicing, financial reporting as well as tax management, they are more suited to various types of businesses. In this comparison of one-to-one, we’ll explore the differences between QuickBooks and Xero so that you can determine which one is the best for your business. Introducing QuickBooks Online QuickBooks Online (QBO) is cloud-based accounting software that streamlines some of the tedious tasks in the management of invoices, bills, and business tasks. With a more robust bookkeeping function that incorporates inventory management and expense tracking by location or class, QBO offers an established system that can meet the most demanding requirements of the business. With QBO you can: Keep track of your expenses, income taxes on sales, sales, and mileage Keep receipts organized and capture them. Invoice (includes advance bill) and accept payment Send estimates or run reports to increase deductions for taxes At Account-Ease We often suggest QBO to our non-profit clients since its class-based functions assign revenue and expenses across different programs making fund accounting easier. Introducing Xero Xero is user-friendly, flexible accounting software that integrates the essential business functions of each plan, like the invoicing process, reconciling bank accounts, and bookkeeping. Xero’s full range of accounting tools and functionality lets you: Input bills, and then forward invoices and quotes. Reconcile (and bulk-reconcile) transactions Manage multiple currencies Upgrading to Analytics Plus to gain access to more advanced data In addition, it lets you capture receipts and bills using Hubdoc or scan them by using mobile or email apps and save documents online, Xero also provides real-time overviews of reports on cash flows. 7 The key distinctions in QuickBooks and Xero 1. Pricing and plans QBO QBO provides four plans (EasyStart, Essentials, Plus, and Advanced) to cater to different sizes of businesses. Beginning at just $9/month, the EasyStart plan offers basic accounting functions that are appropriate for the majority of startups. The more expensive plans, however, are priced between $19 to $60 per month. include features such as: Time tracking Multi-user access and support for multi currencies Budget, bill, and payment and project management QBO also provides add-ons such as Payroll and QuickBooks Payments for payment processing. Xero Xero has three plans (Starter, Standard, and Premium) starting at $14/month and ranging up from the basic Starter plan up to $46/month. On the other hand, the Starter plan restricts the number of transactions per month you can make The upside is that it does not limit the number of people that you can add Xero also provides additional paid services like expense reporting and tracking of projects for all plans. 2. Creation of transactions Both platforms allow you to configure and map your services and products to your account chart. QBO Since there is no draft function you’ll require all your data on hand for recording and posting the transactions using QBO. Xero With Xero You can save drafts of transactions and then continue the creation or editing later. This means that different users can finish or publish each transaction. 3. Tax report Both platforms allow you to calculate, track and control sales tax after which you can generate tax reports with amounts due. QBO Since QBO records different tax rates in different ledger accounts it is possible to utilize your balance sheet to determine the amounts due towards each authority. QBO can also be configured to define the province(s) you have to monitor tax, and it displays only the tax rates for those provinces. The system automatically records the correct transactions to keep track of the tax filings. Xero One of the major differences that are notable between QuickBooks and Xero is the fact that Xero integrates different taxes into an account ledger. This means you’ll require separate reports to track the amount due towards each tax agency using Xero to track your tax payments. It is also necessary to remove any tax rates you do not need from the Xero list of provincial tax rates. Then, you must manually enter the adjustments in your tax entries in order to show your tax filings. 4. Reconciliations and matching of feeds from banks Both platforms make it simple to reconcile feeds from banks by tying them up to the accounting software you use. QBO Simply connect QBO to your bank account feed and check off transactions that match items in that month’s bank statement (printing out your statements makes cross-referencing easier). Note that QBO’s bank feed matching is limited when it comes to foreign currency transactions. Xero Select an account with a bank, go to the Reconcile tab in Xero and then review your two columns (your bank statement and your Xero transaction) and then click the OK button for the respective row, to ensure the match. You can also make comments on transactions to make them visible to other users prior to posting. 5. Report Customization Both platforms have pre-set options for standard financial reports, such as balance sheets reports, income statements, A/P sales tax, A/R, and general ledger report. QBO QuickBooks Online offers more pre-set reports than Xero However, these reports tend to be not customizable. Xero Xero lets you personalize reports by creating formulas, grouping accounts, and altering the report’s format. You can also create drafts of your reports that you can modify later. 6. Multicurrency In accordance with the plan depending on the plan, both platforms will instantly adjust exchange rates and make transactions using foreign currencies. QBO With QBO the currency is determined on the basis of contract (customer as well as supplier) level. So if you work with a single person with multiple currencies, you’ll have to configure each of them independently. Also, you must manually value currencies at the conclusion of every period of reporting. Xero With Xero the currency can be determined at the level of transactions, so one contact can handle transactions that involve different currencies. Xero will also automatically change the value of currencies every time the report

Bookkeeping for healthcare and medical practices can be complicated. From working with insurance and third-party billing companies to preparing financial information for your board, bookkeeping for doctors and healthcare practices requires specialized knowledge. Here are some tips that can improve cash flow and provide timely & accurate data. Go paperless The move to paper-free is a smart option, not just to save the environment, but also for your managing the record of healthcare practice. It could help you save a substantial amount of money in the expense of ink and paper. Additionally, when you send electronic invoices to the patient and insurer this minimizes the requirement for the storage of documents in physical form and increases the speed of collection, improving your cash flow. Separate your personal and business accounts Small business owners often commit a common error of taking their personal and company financial accounts. Not only does this create the accounting process more complex, but it can also appear not professional to investors and lenders too. If it is possible to keep your business and personal accounts separated this will allow an easier task of keeping track of your books. There’s no need to divide the personal expenses of the costs of your clinic. It also gives you a clear insight into how much cash you have, which allows you to quickly assess the cash flow for your clinic. Plus, your accountant will have a much simpler time identifying transactions that will count as tax deductions for your business when tax season rolls around. 𝗞𝗲𝗲𝗽𝗶𝗻𝗴 𝘁𝗵𝗲 ‘𝗙𝗹𝗼𝘄’ 𝗶𝗻 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 A simple way to improve cash flow at your healthcare practice is to run your accounts receivable aging report on a regular basis, so you can pursue any account that is more than 90 days past due. Running these reports on a regular basis and following up on late accounts will assist you in keeping your cash flow on track. 𝗨𝗽-𝘁𝗼-𝗗𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗗𝗮𝘁𝗮 Do you have to prepare reports for a board of directors or other governing body? Professional bookkeeping support can help with that, too. An  bookkeeper can tailor reports to whatever requests the board may have, including cash flow forecasts, just as they can provide timely, thorough records for your CPA. Responding quickly to such requests with accurate, up-to-date data improves communication and increases your board’s trust in you. 𝗚𝗮𝗶𝗻 𝘁𝗵𝗲 𝗧𝗶𝗺𝗲 𝘁𝗼 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗬𝗼𝘂𝗿 𝗣𝗮𝘁𝗶𝗲𝗻𝘁𝘀 Just as your patients entrust their healthcare to a medical expert, you can ensure the proper care for your business by entrusting your record keeping to bookkeeping professionals. With professionals handling your books, you can keep your focus on your patients. Hire a professional to take care of your books Your financial records are crucial to the overall health and well-being of your business. This is why your bookkeeping needs to be placed with an experienced professional. A lot of practices leave this task to receptionists which can result in errors and omissions. Others will put everything in the control of their accountant at the end of the year. If this is the case you aren’t able to keep an eye on your cash flow. And don’t be aware of how your practice is doing throughout the year. To avoid such issues ensure that you make use of the expertise of a skilled bookkeeper. With these useful guidelines, you’ll be capable of keeping your books current and accurate all through the year. It will be easier to monitor your financial records. You’ll be able to pinpoint the areas of your company that require improvement as well as areas that are prime to expand. We at Account-Ease understand the steps to keep your practice’s books in order and will save both time and money. If you trust us to manage your financial data We can help keep your practice well-organized. Provide you with the assurance that you’re bookkeeping is properly managed. To learn more about the ways we can support your practice’s medical needs, contact Account Ease today. We at Account Ease provide best Bookkeeping For Doctors and Healthcare services. Need in help with Bookkeeping For Doctors and Healthcare? Let’s talk and I will help you.

Are you a business owner who has seen your income/turnover rise above the £ 85,000 VAT threshold? Or Do you think that turnover will exceed £ 85,000 within these next thirty days? If you have answered yes to either of these questions, you need to be clear on the nuts and bolts of registering for VAT. It isn’t easy to determine the precise rules and regulations for businesses that need to be registered for VAT, particularly for first-time entrepreneurs. Who is eligible to register for VAT? (and When?) The VAT threshold currently stands at £ 85,000. If your company has exceeded the VAT-taxable limit of £ 85,000 within the last 12 months or is expected to do so during the tax year currently in effect, you need to register for VAT. The date you must be registered for VAT is up to the date on which you are likely to or have already reached the threshold. Companies who fail to declare VAT as their revenue grows above the threshold can be hit with a substantial fine from HMRC. How do I determine my revenue? HM Revenue & Customs (HMRC) defines turnover as sales with no VAT. It is assumed that the company is already registered for VAT since the VAT element isn’t money that the business can keep. If you’re at this point you may be thinking about how you will calculate your revenue. The turnover is based on the total value of all items your business sells and isn’t tax-free, such as: Goods that are lent or hired to customers Zero-rated products  Business goods used for personal use Part-exchanged or traded products Things given as gifts How do I How to register for VAT in 2022? The process of registering for VAT is fairly simple. The two primary methods to register for VAT are: Sign up online using a Government Gateway ID Print out a VAT1 form You’ll require the following items on be on hand at the time of registration: Business contact details Information on your turnover and the nature of your business Bank account details Unique Tax Reference (UTR) number Which VAT Scheme should I select? VAT Schemes are designed to provide companies a little breathing in the process of paying VAT. These schemes also take care of the different situations that are unique for each company with respect to turnover. This usually aligns with the specifics of the company. There are a variety of categories of VAT that you must be aware of prior to registering for VAT. For instance, with the Annual Accounting VAT Scheme, you’ll make advance payments on VAT towards the current year’s VAT based on your previous return or an estimation. If you’re a business owner newly-established business proprietor, understanding the amount you must pay in VAT, as well as the differences between the different VAT schemes is crucial. If you need advice on the different VAT schemes or need assistance registering for VAT, contact us today.

Bookkeeping helps you to understand the performance of your business by keeping track of the funds flowing within and out of your company. The bookkeeping process involves keeping detailed documents of your earnings as well as expenses and costs of expenses. This aids in understanding the financial performance of your company. It also gives you the data that you require to complete annually Self-assessment Tax Returns processing sales and purchase invoices and tracking unpaid invoices. The term “bookkeeping” originates from the usage of physical ledgers, daybooks, and cashbooks. Nowadays, the majority of small firms use software for digital accounting. How do you keep double-entry bookkeeping? Double-entry bookkeeping refers to a method of accounting that has been in use since the 13th century. With double-entry bookkeeping techniques, the business owner can monitor every financial transaction and know how their business is performing in terms of cash balances, and expansion. It also allows a company owner and their accountant access to the data needed to comply with financial and tax submission demands, including tax returns for VAT, annual accounts tax returns, as well as Cash flow forecasts. The principle behind double-entry bookkeeping is that each transaction contains two equal and opposite components. For instance, when you sell items and cash flows increase, as do your inventory levels down. Accounting records for a company consist of double entries, which can be summarized in what’s known as the general ledger. A general ledger is typically divided into at most nine major categories: Assets Liabilities Capital Introduced Owners’ equity/shareholding Income Expenses Drawings Gains Losses What are the major differences between accounting and bookkeeping? Accounting and bookkeeping can be misunderstood because they are often incompatible in many ways. Bookkeeping is the day-to-day recording and categorizing of a business’s financial transactions on the other hand accounting is the process of putting the financial information into use by analysis, strategy, and planning. Basic bookkeeping and bookkeeping for small businesses Maintaining a current, accurate collection of records is an essential aspect of a properly run company. Bookkeeping allows you to: monitor whether your company is earning a profit Access the data you need for tax-efficient returns and business planning. Check to see the cash flow situation to determine if it is coming up so that you can be prepared for it identify incorrect payments or the possibility of fraud Traditional accounting vs. cash basis accounting In order to keep track of your books and calculate your tax-deductible profits. You must choose the accounting method you prefer. The options are either traditional (accrual) accounts or cash-based accounting. Traditional accounting is the process of recording the income and expenses based on the date on which you invoiced or received a bill. Cash basis accounting implies that you will only have to declare the income or expense when it is incorporated into or departs your company. A typical example of accountancy:  An invoice was issued on the 18th of February 2021, however, you didn’t receive payment until the 20th April of 2022. The invoice is recorded as for the tax year 2021/22 even when it was paid during the tax year 2022/23. The amount of income must be reported in the tax return for the year 2021/22. A case study in cash base accounting. You paid an invoice on the 20th of March 2021 and then received the payment on April 30, 2022. Invoices are recorded as the tax year 2022/23 since it was the tax year that you paid the funds. Although the invoice was issued in the 2021/22 tax year, you are able to claim it on your tax return. Cash basis accounting when you’re a self-employed solo partner or a partnership that has an enterprise that has a turnover of less than PS150,000 annually. If you own multiple businesses Cash basis has to be used across all businesses and the total business’s turnover must not exceed PS150,000. If your business grows beyond that, you will need to apply traditional accounting on the next tax return. Limited liability and limited company partnerships are not eligible to utilize cash basis. There are certain kinds of companies that are not able to benefit from the cash basis scheme. These are listed at the gov.uk website. The government suggests that cash basis is not suitable for your business in the following circumstances: You would like to claim bank charges or interest that exceed PS500 to be a cost are more complicated to operate like holding large amounts of stock If you’re in search of business finance the lender could ask to view the accounts drawn using traditional accounting before deciding to fund Have losses you wish to offset against other tax-deductible earnings (‘sideways loss relief’) In traditional accounting, you must keep these files as well as your regular expenses and income: what you’re due but haven’t yet received costs you’ve committed to, but haven’t yet paid the value of your stock and work in progress at closing of the accounting period Year-end bank balances the amount you’ve put into the company during the year the money you’ve gotten from the business to use for personal use It is suggested that you consult an experienced accountant to determine what’s the best method of accounting for your business. Software for bookkeeping that is suitable for small-sized businesses If you utilize the software for bookkeeping your process is likely to be more efficient. The automated bookkeeping apps for small-sized firms speed up processes and allow your accountant to assist by allowing them to log in and see the way in which items are classified. Other benefits of online accounting and bookkeeping software are: Automatically issue invoices to customers. Automatically pay bills You should keep track of the amount your customers owe you. Be aware of what you are owed by your suppliers. Access financial information about the move have up-to-date information that are required by lenders or providers who offer credit Do I have to manage my bookkeeping? Although it is recommended to hire an accountant or bookkeeper who is a professional, however, you can complete your bookkeeping. If you decide to do this, you have to be aware of the steps

Account-Ease is one of the largest accountancy providers in the UK; we offer a great range of property tax advice specifically for landlords or those with second properties. If you receive rental income that exceeds your total expenses, allowances and reliefs. Then you are required to pay tax on this income by submitting a tax return. If your rental property generates a loss, you may want to voluntarily disclose it because this allows you to make use of the loss in the future should the property turn profitable. Deciding on your main residence If you do own and personally use more than one property in the UK. It is possible to make an election to nominate which property should be treated as your main residence for tax purposes. We can advise on the implications of making such an election. The qualifying conditions that must be met and help to decide if it would be beneficial for you depending on your personal circumstances. There are strict time limits for making this election, which has to be filed with HM Revenue & Customs, so it is important that advice is sought promptly. Selling property If you have Capital Gains Tax to pay, for example because you’ve sold or given away a holiday home or second property, you will need to complete a tax return. Account-Ease can advise you on any tax planning opportunities available, in order to minimise your Capital Gains Tax liability. We can also calculate your Capital Gains Tax liability and complete your tax return for you. Rental Properties If you rent out property you will pay income tax on the difference between the rents you have charged in a tax year. Less any allowable expenses and charges. We can help you to make sure that you are claiming all of the expenses and reliefs you are entitled to. Knowing what maintenance and repairs can be deducted can be tricky. Because there are a number of different methods that can be used depending on your circumstances. We can discuss your options with you and make sure that you make the right choice; to optimise your tax position and fit your needs. We can also make sure that you are claiming all of the finance costs for any loans or mortgages you have on your properties, as again, this can be a complicated area and taxpayers can miss out on valuable tax relief. Furnished holiday Lets Significant changes were made to the treatment of Furnished Holiday Lets for tax purposes. The conditions in order to qualify for such treatment are now more stringent and the benefits have been reduced. But we can advise you on the qualifying conditions and the implications that such status entails for your properties. Letting rooms in your home If you let rooms in your own house. You may not pay tax if the total rents charged are under £7,500 per tax year. But there are conditions in order to apply this exemption, which your local Account-Ease can discuss with you. We can provide you with advice regarding all tax aspects of buying, selling and letting property. We have only included a few areas for you to consider on this web page. If you are about to invest in, dispose of, or let property do give us a call.