You may have heard the adverts on the radio extolling the virtues of Xero for construction companies. But by the time you get out of your car or van, you’ve probably forgotten all about it.
Basically, it mentions that you can send quotes, create invoices, manage jobs and even track expenses via an app on your mobile. Does that sound too good to be true? It might, but it does work?
At Concept Accountancy, we recommend Xero accounting software for all business. But it’s particularly good for construction businesses. Xero understands that construction business owners are rarely in one place.
All too often, queries arise while you’re out and about. And by the time you get back to the office, you’ve forgotten to raise or chase an invoice because more queries or onsite problems have taken priority.
So, to help, they have developed a range of features you can use on your mobile that take care of everything without needing to sit at a desk.
What’s so good about Xero for construction?
Here are the reasons why we think Xero will work for your construction company.
App keeps you informed wherever you are
Currently, you may need to head to the office or dig out a laptop to check your figures. With the free Xero Touch app, you can view them onsite no matter where you are. It allows you to create sales invoices, check current bank balances and see what money’s due to be paid in and out.
Stay on top of subcontractors
Managing your subcontractors is a job in itself. But Xero allows you to manage them easily. Your subbies can email invoices directly to Xero and you have a digital copy saved in your accounts, meaning payments are easily processed. Xero creates batch payment files for you to upload directly into your bank, which saves manual entry. Using the payroll function, you enter payment information which shows CIS deductions owed to HMRC. It’s worth having the app to sort that headache alone!
Preparing quotes
How do you currently prepare quotes? You probably need to head to your laptop or to the office. And then something delays you and the quotes go on the back-burner, so you’re up at midnight working on them. With Xero, you can prepare quotes from the app wherever you are. What we really love is that the quotes feature your logos and details and you can revise and edit as much as you like before emailing them. You can upload and attach files to your quote and save plans, budgets and staff details in one place. Once quotes are agreed you can turn them into sales invoices, meaning no need for duplicates. And it all happens with clicking a few buttons!
Project module
It costs extra to add the module, but it will soon pay for itself. If you track time, bill in stages or take deposits, then it helps track, plan, budget, quote and invoice for projects.
Tracking codes
Using up to two tracking codes, you can monitor progress on whatever you want to report on, such as showing the costs and sales for each site. It also means you can track sales made by your sales people, meaning you can easily work out what commission they’re owed.
Xero and standard rates VAT
Whether you are working on zero-rate new build projects or standard rate jobs, Xero handles both. It can even work out different rates on the same invoices. That’s another frustrating job taken care of!
Keeping track of purchases
This is one feature that works well for any business but it’s a big boost for construction firms! Each time you make a purchase, you can use the Touch app to upload invoices or receipts simply by taking a picture of them. They’re then uploaded directly to Xero. It means you don’t need to rake through the van looking for invoices for HMRC! And if you forget your business credit card and pay out of your own pocket, Xero can even reimburse you by telling it which account it was bought from.
What to do next
If you’re a construction company owner and think Xero is the answer to your prayers, then we can help you. Just contact us today for details.
