Running a hospitality business is no small feat. Whether you manage a bustling restaurant, a cosy café, or a luxurious hotel, staying on top of your finances, managing operations, and ensuring customer satisfaction can be overwhelming.
This is where Xero, a cloud-based accounting software, can help you. Xero is designed to simplify financial management and integrate seamlessly with other tools, allowing you to focus on what you do best — delivering exceptional experiences to your customers.
Here’s how Xero can help your hospitality business thrive.
Access to real-time financial information
In hospitality, staying on top of your financial health is crucial, which Xero can help you do by providing real-time access to your financial information, giving you an up-to-the-minute view of your cash flow, expenses, and profits. This means no more waiting until the end of the month to see how your business is performing. With Xero, you can make informed decisions quickly, whether it’s adjusting pricing, managing stock, or planning for future growth.
Xero can do this because it’s a type of cloud-based accounting software, which means it holds your financial data on the Internet. Therefore, what you see on your account is your up-to-date information. Make one change (like adding a new sale), and your account will instantly reflect that. Having real-time financial data at your fingertips is particularly important in the hospitality industry, where margins can be tight and unexpected expenses can arise at any moment.
With Xero’s dashboard, you can monitor key metrics such as daily sales, outstanding invoices, and bank balances, helping you stay in control and avoid cashflow issues. This level of visibility can be a game-changer, enabling you to react swiftly to changes in the market and keep your business on a steady course.
Mobile access for on-the-go management
In the hospitality industry, business owners are always on the move. Whether you’re managing multiple locations or simply need to be available to your team, having access to your financial data on the go is essential – and Xero’s mobile app allows you to manage your business from anywhere, at any time.
But the phone app does more than just view your figures. In fact, it works just as well as the desktop version: you can send invoices, check your cashflow, and even reconcile bank transactions right from your smartphone or tablet. This flexibility ensures that you’re always in control, no matter where you are.
Easy collaboration with your accountant
Xero is an extremely useful tool for collaborating with your accountant or bookkeeper. Because Xero is cloud-based, you can grant your accountant user-defined access to your account so they can access your financial data in real time, no matter where they are.
This access makes it easier to get timely advice, prepare financial reports, and ensure compliance with tax regulations. It also makes meetings with your accountant far more productive, as they’ll have the same up-to-date figures as you. No more wasting time exchanging spreadsheets and documents via email.
Saving time (and money) with Xero automations
One of the biggest challenges in the hospitality industry is the sheer volume of administrative tasks that need to be handled and trying to work on them without letting that compromise your other jobs, like improving your business and serving customers.
This is another area where Xero can help, as you can use it to automate repetitive tasks like invoicing, expense tracking, bank reconciliation, and even payroll, freeing up your time to focus on more strategic activities. Too many business owners misunderstand this aspect of Xero—they keep keying in data themselves when part of the point of Xero is for it to automatically fill in data for you.
Automation can be a game changer for businesses, mostly because of the time it will save you – it’s also an extremely cost-effective alternative to hiring outside help with your finances. Automation also reduces the chances of errors finding their way into your numbers.
Seamless integration with different software
Another standout feature of Xero is its ability to integrate with a wide range of other software tools commonly used in the hospitality industry. Whether you’re using point-of-sale (POS) systems, inventory management software, or customer relationship management (CRM) tools, Xero can connect with these systems to streamline your operations.
This feature brings all the various software platforms you use under one roof. That means two things. First, you won’t have to keep track of all your passwords or struggle to keep your head above water with all sorts of programs running all at once. Second, if you make a change on one platform, that should filter through to your other applications as appropriate, which takes us back to the first benefit of Xero we discussed: real-time financial insights that allow you to remain on top of your business.
Why Xero is the answer
Xero offers a comprehensive solution that can significantly enhance the efficiency and profitability of your hospitality business. By providing real-time financial insights, mobile accessibility, seamless collaboration with your accountant, and powerful automation features, Xero empowers you to focus on delivering exceptional customer experiences without being bogged down by administrative tasks.
Furthermore, its ability to integrate with other key software tools ensures that all aspects of your operations are streamlined and cohesive. With Xero, you can manage your business with confidence, knowing that you have the right tools in place to help your hospitality business not just survive, but thrive.
Need help setting up Xero? Get in touch with the experts at JTP Accountancy today.
