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For many Australian businesses, Square and Xero are a powerful duo that work together to streamline payments and accounting processes. You know Xero as the leading small business platform, but you may not know how easy it is to sync with your Square tools. In this spotlight article, we’ll take a look at the benefits of the Square and Xero integration, and how it could put you in a better position – not just at tax time, but at any stage of the fiscal cycle.
But first, a reminder on the basics of Xero, and why it’s such a popular platform for businesses across a wide range of industries. Xero is a cloud-based SaaS (software as a service) accounting product that provides all the tools for businesses to manage their finances, for a monthly subscription fee (talk to your accountant about potential software tax deductions).
Like similar accounting SaaS platforms, Xero takes the stress out of small business accounting, with tools to automate bookkeeping and other time-consuming tasks, including BAS submissions and other EOFY reporting. Xero is known for its easy integration with other apps and software products, including Square.
Connect your daily sales with your accounting
When you integrate your Xero and Square accounts, all transactions you process with Square can be imported into your Xero account, giving you accurate daily summaries across any number of locations and payment types. It includes all card, mobile wallet and cash transactions, as well as any refunds and fees.
The ability to sync your daily sales data with Xero will save endless hours of manual entry and reconciliation. This gives more time back to you to run your business, and less hassle when it comes to monthly bookkeeping and end-of-financial year tax preparation.
Accept Square payments on your Xero invoices
By processing payments with Square, did you know that this opens a new and simple payment channel for your Xero invoices too? Within your Xero invoicing settings, you can simply add Square as a payment method for any invoice to be settled with a credit or debit card. This instant payment option will make things easier for your payer, and quicker for you as the payee. It’s an easier, more intuitive payment option than the standard EFT bank transfer which should help you manage your cash flow and prevent late payments.
Access valuable data and customise your reporting
By pairing Xero with Square, your business will benefit from access to sales data and reports that can help inform your decisions and ultimately support your business growth. The integration not only syncs daily sales to your accounting, but it also breaks it down into transactional details, from gift cards, to tips, surcharges and even GST and fee allocation in your summaries.
This customisation and reporting allows the decision makers in your business to get a clear and accurate view of your sales trends and expenses, spotting any issues before they become problems. They could also use Square and Xero’s analytics insights to see opportunities that may have previously gone unnoticed.
If you already use a different accounting solution in your business, you might still be in luck. Square connects with a whole host of accounting tools in addition to Xero. These include MYOB, Intuit Quickbooks, Zohobooks, Quickbooks Online by Amaka and Snyder. Whatever tool you’re using, make sure you sync your Square payments and start reaping the benefits of a smooth integration.
*This article is for informational purposes only and does not constitute legal, personal, or tax advice. The information contained herein is subject to change and may vary from time to time. For specific advice applicable to your business, please contact a professional.