3 Easy Ways to Maintain Documentation in Xero
I am sure all of us can remember or imagine a scene of a busy secretary carrying a huge stack of papers and doing their best to file them quickly away. The more humorous scenes may include the coworker next door rolling a high-speed working fan past the doorway and all of the papers flying everywhere in pandemonium. Does your office ever look or feel like this? The following paragraphs will outline three easy ways to maintain documentation on Xero.
Xero provides a service where files can be retained on your account and used for attachment to bank transactions. There are two easy ways users can upload documents. First, you can directly import files from your computer into the Xero Files folder, similar to attaching a file to an e-mail. Secondly, and by far my favorite, your Xero account will have an e-mail address linked directly into Xero Files. This e-mail address can be used to directly send files from your personal or business e-mail account into the Xero Files folder. For example, let’s say you receive a PDF copy of an invoice. You can e-mail this invoice into your Xero Files folder and when you’re ready to reconcile the expense, just attach the document in Xero and the invoice is available for you to pull it up when needed.
Many businesses need to pay bills to vendors and do not want to manually write checks. Bill.com is a great choice to alleviate manually written checks. Since bills are already being routed to bill.com, you can also route your receipts through the app to make retaining documents less of a hassle. As a SaaS, Bill.com allows users to upload an invoice, receipt or other document and create a bill, which is synced into Xero. The bill in Xero has a link back into Bill.com with the document able to be viewed at a moments notice. The bill in Xero is then used to reconcile against the associated bank transaction when it syncs from your bank account into Xero.
Hubdoc, another great program for storing source documentation, is similar to Bill.com, but without remitting payment. Hubdoc’s main draw for business owners is it’s ability to connect with vendors, such as Amazon, Target, banks, and others, by automatically pulling your bills down into Xero without you having to e-mail them into Hubdoc. Hubdoc then retains a copy of the transaction document by creating a bill in Xero. Can you imagine a world where you go onto website and puchase goods, and immediately the receipt of purchase shows up in your accounting system? It’s a business owners dream. This is where Hubdoc wants to take us.
Whether you decide to use Xero Files, Bill.com, or Hubdoc, retaining documents will ensure your business is organized and prepared. Retaining documents will safeguard your business from audits and the need of second guessing expenditures or other information not included in your bank statement. With various computer software and websites, keeping documentation no longer needs the space and time of a filing cabinet with thousands of file folders. It can be an easy process that stores AND sorts your documents without stealing your office space!
If you can afford the $20/month fee for Hubdoc we recommend going that route since it automates much of the manual processes in Bill.com and Xero.
What has been your experience with documentation apps? Let us know.