ONLINE SOLUTIONS, Xero

Why do we need to do a Xero HealthCheck, and what does it involve?

Posted on by sharon baker

So we’ve advised you that we need to run our Xero HealthCheck on your Xero data, but why on earth do we need to do a Xero HealthCheck, and what does it involve anyway?

 

We’re thrilled that you’ve chosen Kinder Accountants as your accountants and business advisors. We’re also thrilled that you’re already using Xero, or want us to convert your existing accounting software to Xero.

Why do we need to do a Xero HealthCheck?

We can’t wait to get started, but before we get going, we’ve learnt the hard way that we we need to check that your Xero data is nice and tidy, and that you’re making good use of Xero’s time-saving and security features.

So here’s what we do:

 

1. Xero security and feature check:

We’re going to check the following areas,to make sure you’re making best use of Xero’s awesome features, and to make sure you’re taking your data security seriously:

  • Are lock dates set correctly?
  • Are users correct, and who you want to have access to your data?
  • Do you all have 2 step authentication set?
  • Are you using bank rules?
  • Are you sending invoices directly from Xero?
  • Are you using products and services?
  • Are you registering fixed assets in Xero?
  • Are VAT returns filed via Xero?
  • Have you signed up to Making Tax Digital?
  • If you have employees, are you using Xero Payroll?
  • What apps are you using/could you use?

2. Xero data check:

We need to do this to make sure that we have reliable financial data as our starting point. Without this reassurance we can’t give you the best advice on your business finances:

  • Do the previous year Xero balances agree to the signed and filed accounts?
  • Have all your bank accounts been reconciled correctly?
  • How up to date are aged receivables and payables, and are they tidy?
  • Are fixed assets up to date and depreciated properly?
  • Are all other balance sheet balances correct?
  • Have all transactions been coded correctly?

3. Next Steps

  • We’ll provide you with a report on our findings, and any recommendations for improvement, or any adjustment that need to be made.
  • We’ll also provide you with a Xero HealthScore. We’re looking at a score between 85% and 100%. Any lower than this and there is likely to be tidy up work to complete before we can start looking after you.
  • It’s a thorough process, for which we charge a fixed fee of £495  plus VAT
  • If there’s nothing to change, this fee is deducted from our next fees to you
  • If there are adjustments to make, we’ll agree whether you’ll make the adjustments or us (usually a bit of both!)
  • We’ll also agree any additional fees for tidying up your Xero before we start work
  • We’ll check in regularly to make sure everything is up to date following our recommendations
  • You should now be reassured that you have a clean and tidy Xero account!

 

Thank you for reading.   Do get in touch if you think you’d benefit from our Xero HealthCheck!

 

Sharon

sharon baker