Xero Processes Improvement for Hospitality Business
Client Profile
The client is Newcastle’s longest serving liquor wholesaler who needed to improve their Xero processes. They are an on-premises liquor specialist catering to cafes, pubs, bars, hotels and restaurants. The client’s business had two types of customers as they operated retail and wholesale both instore and online. The company started with husband and wife team who created a successful business formula that competed amongst the biggest and best in the industry.
The company was approached by another wholesaler to merge the business. The company had a unique and proven model and the owners were ready for retirement.
Key Drivers
The Conundrum
A board member, who is an accountant converted their accounting software to Xero. After conversion, assistance was not given to adapted their current procedures to Xero processes. This caused confusion for their administration team and issues within their accounting software.
The business had a POS linked in store and to their website which was not integrated with Xero. This meant that their daily sales were enter as separate journals depending on the method of payment. This method used clearing accounts which were not always cleared leaving meaningless balances and inaccurate reporting. The administration staff knew there was a problem and needed assistance to create new Xero processes to provide accurate reporting.
The Solution
The first step was to understand how they had adapted their procedures and how they used Xero. Why they were entering the transactions in separate journals and how they were using the many clearing accounts set up. We then followed the transaction trail to fix errors causing balances in clearing accounts. This step was critical for the merge to move be successful.
New Xero processes were developed which eliminated the need for clearing accounts. Daily sales were entered and the funds received were marked off as payments.
It was decided it was best to leave the POS stand-alone rather than integrating to Xero. This was because they accounted for the wholesale and retail parts of their business separately. They had countless inventory products and this part of the business was working really well.
The Result
A board member, who is an accountant converted their accounting software to Xero. After conversion, assistance was not given to adapted their current procedures to Xero processes. This caused confusion for their administration team and issues within their accounting software.
The business had a POS linked in store and to their website which was not integrated with Xero. This meant that their daily sales were enter as separate journals depending on the method of payment. This method used clearing accounts which were not always cleared leaving meaningless balances and inaccurate reporting. The administration staff knew there was a problem and needed assistance to create new Xero processes to provide accurate reporting.
