Hello again from Accolade Accounting your experts with helping small business improve their cash flow and profit.
We will continue to look at the changes brought about by the cloud based Xero accounting package.
Before cloud Xero (BC X) all businesses used to store supplier and customer invoices in files. This is because the ATO requires most documentation to be kept for at least 5 years.
The most recent years of invoices would be kept close by and older years stored in a storeroom.
Now after cloud Xero (AC X) NO files are needed. All supplier invoices are stored electronically in the Xero accounting package, but more than this, they are attached to the relevant transactions.
Should you need to find a specific invoice, you simply go into the Xero file and search electronically and you will find the transaction as well as the attached source document.
Even better, there is place within Xero to store all non transactional documentation, as well such as business set up documentation and agreements.
So all documentation can now be found in the cloud all in one file. What a time saver and no more excuses” I can’t find it”
Until next time….