Xero Practice Reports: The New Generation of Financial Reporting
The cloud technology has helped accountants and bookkeepers deliver real-time data to their clients. This is why cloud accounting software Xero’s approach to accounting is to become a single-ledger platform to have both parties on the same page at the same time.
Recently, Xero has released a powerful financial reporting tool to enhance the collaboration of accountants and their clients. Xero Practice Reports help accountants standardise reporting for your clients by customising each of their chart of accounts and map them into a single set of reporting codes.
“This facilitates better conversations because accountants can run a report any time of the year and say this is how your business is doing now,” says Bailey Brooks Xero’s partner product marketing manager.
Xero introduced the concept of report codes five years ago to enable practices in Australia and New Zealand enforces practice reporting standards that could be applied easily to their entire Xero client base. Not only does this feature increased productivity and efficiency, it also eliminated non-value adding activities like requesting files, transferring data to desktop software, and creating and posting alignment journals for clients. But Xero knew it could take financial reporting a notch higher, so it decided to boost Report Packs.
The new and improved reporting platform has a dynamic two-tiered reporting model, meaning it allows you to set reporting standards at a practice and client level. It also retains the concept of reporting codes, but has greater customisation feature right down to client levels. With Xero Practice Reports, there’s no need to dabble with tricky report editing software as it gives you the flexibility to create statutory and management reports from customisable templates according to the needs of the client.
Here are more of Practice Reports’ features:
- Reporting Templates
Practice-wide templates are designed to be intuitive and more user-friendly. When an accountant adds a schedule, it will auto-populate with appropriate insights for clients. You can also add more sections or report formats for each client.
These templates are also compliant with Chartered Accountants Australia and New Zealand Special Purpose Financial Reporting (CAANZ SPFR), which accountants can use as a base for their own customisations or copy other templates they have created.
You can prepare in-depth reports in half the time as automatic adjustments make it effortless.
- Connected / No Migration
Practice reports remove the need to migrate data from other systems or post-alignment journals to create in-depth reports, allowing you to streamline your workflow as you’re completely connected.
There is no automatic migration of existing Report Packs to new Practice Reports; but if you’re currently using Report Packs, Xero will help you move to the new version of Practice Reports.
- Add Your Own Formula
Report Packs didn’t allow accountants to create their own formulas, but Practice Reports do. The formulas can use any of the reporting codes. In this release, they are limited to horizontal calculations such as income fewer expenses, but Xero assures that it will have variance percentages as a column in the future.
- Added Intelligence – Drag-and-Drop Reporting
You can drag to where you want the codes to appear and let go when your cursor is in the right place. The tool has a two template switching rule where a bank account going into overdraft will automatically switch from one part of the balance sheet to another. “A bank in debit will show as a current asset with the name “Bank”. But if that account goes into credit it will show as a current liability with the name “Overdraft”, Brooks says. Accountants can come up with their own switching rules as well.
Xero Practice Reports provide tailored and valuable information helping accountants save hours, and clients make better decisions.
The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients. If you want to know more about outsourcing, call us at 1300 896 522 / 0800 452 853, and download our e-book.