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Xero bookkeeping automation: 5 workflows you need to automate

If you’re running a business of any size, managing bookkeeping can quickly become a time-consuming and often tedious task.

However, with the help of Xero and automation, you can simplify these processes and improve the overall efficiency of your business.

In this article, you’ll discover five Xero bookkeeping automation workflows worth implementing to save time and improve accuracy.

How does Xero automation improve bookkeeping processes?

Xero is a cloud-based accounting software that helps you manage your financial data, invoices, expenses, and more.

By integrating Xero with automation tools, you can:

  • Simplify your bookkeeping processes.
  • Reduce manual data entry.
  • Improve the accuracy of your financial records.

Xero can connect to your bank accounts, credit cards, and other financial institutions, so your transactions will automatically register in the software.

By leveraging Xero bookkeeping automation, you’ll have an up-to-date view of your finances to easily manage bookkeeping for your business.

You can also integrate Xero with various apps, including CRMs, e-commerce platforms, POS systems, and e-signature platforms.

Overall, integrating Xero with other software will assist you in improving the effectiveness of your bookkeeping, allowing for increased efficiency and preventing human errors.

What tasks can Xero automate?

If you’re looking for efficient and effective ways to streamline your Xero bookkeeping process, integrated apps and software are your best bet.

You can start by automating tasks such as:

  • Syncing transactions.
  • Invoicing and billing.
  • Capturing e-signatures.
  • Payment tracking.
  • Quote-to-cash workflows.

5 Xero workflows you need to automate

Here are five Xero workflows worth automating to simplify and speed up your accounting operations.

1. Syncing transactions

One of the most time-consuming tasks in bookkeeping is reconciling bank transactions. To automate this process, you’ll need to sync transactions to Xero from two sources.

The first source is the bank feed that contains the ‘payouts’ or amounts from e-commerce or POS platforms, such as Shopify or Square deposits. In this instance, the second source would be data directly from Shopify or Square.

A Xero integration like Amaka, for example, can pull data directly from the e-commerce or POS system and sync to Xero, automatically matching translations to the bank feed.

This integration, in particular, can also sync up to 12 months of data so you can catch up on any reconciliations you’ve missed.

2. Invoicing and billing

    Creating invoices and billing clients can be tough to track without a system that collects and aids with this process.

    With Xero’s invoice automation feature, generating and sending invoices to clients is automated. You can:

    • Create custom templates for your invoices.
    • Set up recurring invoices.
    • Automatically send reminders to clients who haven’t paid. 

    There are also integrations that let you sync bills and invoices from Xero to your calendar or Slack. 

    You can give access to other team members, clients, or your accounting professionals so everyone stays in the loop. This automation is invaluable in helping you stay on top of bills and follow up on unpaid invoices.

    Another handy invoicing example of Xero bookkeeping automation is converting estimates to invoices with only a click of a button. This feature helps you prevent duplicate transaction documents and eliminates the need to create invoices manually.

    3. Capturing e-signatures

    For many businesses, capturing signatures digitally for important documents such as bills, purchase orders, expense claims, and quotes is a key process. 

    Through Amaka’s free DocuSign + Xero integration, you can automate the document execution process. This integration will automatically fetch documents from Xero and then transfer them over to DocuSign to be signed by the relevant receiver.

    Once completed, the status updates automatically on both ends, and Xero will save a copy of the document as a PDF.

    4. Payment tracking

    Keeping track of client payments can be challenging, especially if you have multiple invoices with different due dates.

    With Xero’s built-in accounts payable automation, you can see which invoices were paid, which are overdue, and which are pending payment.

    Method: CRM is an example of an integration that helps Xero users streamline their payment tracking process.

    It offers payment gateways and even self-service customer portals where your clients can make payments anytime, anywhere.

    This Xero integration also tracks both commission and payouts, so it helps you stay on top of your cash flow and follow up with clients who haven’t paid.

    5. Quote-to-cash

    The quote-to-cash process typically involves creating quotes for clients, generating invoices, and collecting payments.

    This process varies from one business to another, but Xero users can use an integration like Method to automate every step of the workflow.With Method:CRM, you can create custom templates for quotes and set up recurring invoices for regular clients, saving you both time and effort you can spend growing your practice.

    Recap: Xero bookkeeping automation

    Xero bookkeeping automation can improve your financial processes by reducing manual data entry and automating repetitive tasks.

    Each of the workflows mentioned in this blog would typically take you or your accountant a significant time investment. But by using integrations for workflow automation, you can easily remain on top of your business’ bookkeeping processes. 

    Start automating your way to stress-free days with your free trial of Method!

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