Many of our clients have found that their “office time” has grown in recent years. Keeping on top of your administration and finances is critical to the success of your business so here are some online methods to create efficiencies when processing bills, invoices and documents.

We’ll mostly focus on Xero software because it’s widely used by our clients, but you’re welcome to contact one of our Baker Tilly Staples Rodway agribusiness specialists if you use other software and have questions.

Considerations

There are a range of options to consider when it comes to choosing a system that is going to work for you. It can depend on: 

• The amount of value you place on time as a resource.
• The accounting software you use, and who processes the GST.
• Technical ability (our staff are happy to assist with training)
• Appetite for change
• The number of people involved in your billing / admin.
• The size of your business, which influences the volume, dollar value and complexities of transactions.
• Whether you’d benefit from having a running payables and receivables ledger.
• Whether you want to do cashflow forecasting and regular tax reviews. 

Options

1. Email folders

Using your own online storage system, such as folders in Outlook, is an option. It saves on paper but is only accessible by the owner unless you’re willing to share email access with administrative staff or professionals. Storage limits and data security may need to be considered.

2. Xero files

Xero has an email address you can forward your supplier bills to. This works exactly like an email inbox, used simply for online storage (no search functionality exists). Bills can be filed in folders by month or GST period. This is an improvement on paper-based storage and great for clients whose systems are predominantly manual, however finding an item can still take time.

3. Attaching documents in Xero

Once the transaction has occurred at bank or invoice level, Xero lets you attach a PDF of the expense or receipt to the transaction, to show what it was for. This makes searching for documents much easier, and reduces queries from your accountant as all source information is easily accessible. 

This can also be done in reverse with the ‘email to bill’ feature in Xero. You can forward invoices from suppliers to Xero, which creates the draft payables or receivables transaction in Xero with the document already attached. To further reduce time, you can set up automatic email-forwarding rules from your email account.

4. Hubdoc

Hubdoc is a component of Xero and comes free with most subscriptions.  It can be used in a number of ways. 

At the simplest, it is a smart document storage facility that automatically reads documents sent to it (not limited to bills) and stores them in unique supplier folders. This is achieved by forwarding emails to the Hubdoc address or scanning documents using a scanner or your phone’s camera. Stored documents can be indicated as reviewed, paid or archived. 

Hubdoc’s storage system is searchable not only on the contact name, bill date or amount, but also descriptions within the original document. 

Going a step further, you can create rules within Hubdoc that will send the document to Xero already coded for you. There are different payment approval stages you can choose from, so you have opportunities to adjust in Xero if necessary.`

5. Making Payments Easier with the use of Xero’s bills system

If your business banking has “batch payments” enabled, you can settle all your monthly bills in a single payment rather than make individual payments to each supplier.

Conclusion

Each of these methods meets Inland Revenue’s seven‑year record‑keeping requirements, so paper copies aren’t needed. They allow you as a farmer to spend valuable time and energy where you wish to spend it. They also assist your accountant to find backup information when needed, which should equate to fewer queries for you as clients, creating efficiencies and saving time for both parties. 

For more information on any of these options, please get in touch with one of our agribusiness advisors.