The short answer
Setting up accounting software like Xero from day one helps streamline compliance, reduce stress, and keep your business finances organised.
Set up cloud accounting software like Xero from day one. It costs a small monthly fee, but it gives you real-time cash flow, profit and tax visibility, makes BAS and tax returns faster and cheaper, and saves the painful clean-up that comes from spreadsheets and shoeboxes of receipts.
Why start with software on day one?
In the first months of a business, it’s tempting to track things in a spreadsheet. The problem is that habits form fast. By the time you’re busy, catching up on six months of transactions is stressful and expensive. Starting properly means every transaction is recorded and coded from the beginning.
What does Xero do for a new business?
Bank feeds bring transactions in automatically.
Invoicing with online payment options gets you paid faster.
GST tracking calculates what you owe for BAS.
Receipt capture through apps like Hubdoc or Dext removes the shoebox.
Reports show profit and loss, cash flow and balance sheet whenever you need them.
Payroll handles pay runs, super and Single Touch Payroll once you hire.
What should you set up first?
A separate business bank account and card, connected to Xero.
A chart of accounts that suits your industry.
GST settings, if you’re registered.
Invoice templates and payment terms.
A receipt capture app.
A weekly 15-minute reconciliation habit.
An accountant or bookkeeper can set this up in a few hours, which is far cheaper than fixing it later.
A typical Melbourne scenario
Nina launched a landscaping business in Mornington with a spreadsheet. Six months in, she had hundreds of transactions, missing receipts and no idea what she owed for GST. Cleaning it up cost her more than a year of Xero and a bookkeeper’s setup would have. Her friend Ben started his electrical business on Xero from the first invoice; his BAS takes 20 minutes and he always knows his profit.
Key takeaways
Start on cloud software from day one, not after the mess.
Bank feeds, invoicing and receipt capture save hours every month.
A proper setup makes BAS, tax and reporting faster and cheaper.
General information only. Talk to your accountant about your circumstances.
See our Xero accountant, Xero bookkeeping and company setup services, or read basic setup you need to start a new business.
Oz calls accounting "the great art", and his clients would agree. A CPA member and Xero specialist, he joined Elephant to provide a more holistic service that covers every base of building wealth. He believes long-term relationships are the only way to get clients real results. When he's not at his desk, he's at the gym, on his bike, or fishing - ideally all three.
