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  • What subscription expenses will my small business incur?

    When running a small business, you will expect to incur monthly costs around the production of your product or service (eg; raw materials to make it). You will probably also think about office expenses like rent, gas, etc. But there are other administrative monthly costs of running a small business that can add up quickly and start to make you feel a little out of control. Here is a list of some of the basic subscription costs that you can expect to incur.

    Note that these estimates below include VAT. Many businesses will quote you excluding VAT, which is only accurate if you earn enough to be VAT registered.

    • Basic IT
      • Email, calendar, spreadsheets, word docs etc: eg: Microsoft 365 – €12
    • Web page
      • Managing shop/products: eg: Shopify €18
      • Hosting and editing content: eg: WordPress – €5
    • Finance/Accounting
      • Accounting software: eg: Xero/QuickBooks – €50 (or €75 for multiple currencies)
      • Expense app: eg: Xero Expenses – €4 per person
      • Payroll software: eg: BrightPay – €28 (1 employee), €62 (up to 50 employees)
      • Timesheet management: eg: Deputy – €5 per person
      • Accountant fees: €100 – €2,000 depending on services included
    • Marketing
      • Mailing software: eg: MailerLite – €10
      • Facebook/Google advertising: starting at about €150

  • What key numbers tell me how my business is doing?

    All business owners need to know if their business is healthy . Here are a handful of key numbers that you need to keep an eye on. A quick look once a week will help surface any early warning signs for you to investigate.

    • Your cash flow (ie: will I have enough cash to pay my debts in the following weeks), including:
      • Current bank balances
      • Most urgent payments due
      • Old customer debt
      • Interest and debt repayment schedules
    • Profit/loss per product/service (ie: should I continue to sell this product/service or is it making a loss on every sale), including:
      • + Sales price, less discounts
      • – Material and labour costs
      • – NB: marketing, selling and banking fees
    • Actuals vs budget (ie: are things going as expected or does the plan need to be looked at again)

    Most of this information can be pulled straight out of your accounts and shown on your dashboard to check each time you log into them. There are also some great products such as Syft that can give you more details straight from your accounts. Ask us if you’d like to know more.

  • Xero vs QuickBooks, which should I choose?

    Xero and QuickBooks are both cloudbased accounting packages that are regularly updated and have important features such as automatic bank downloads and rules. But which one is right for your business? It depends very much on your specific requirements – here are a few differences to help you decide:

    • QuickBooks’ Advantages
      • Multi-currency can be included from the 2nd level ‘Essentials’ subscription, which is cheaper than Xero’s first multi-currency option at level 3 ‘Premium’.
      • Revolut personal bank accounts can be linked to the automatic downloads. Only business Revolut accounts are currently supported by Xero.
      • USA focussed, which means all the complicated different state tax rules are catered for. If you are US tax registered, of course.
    • Xero’s Advantages

  • Should I set up bank rules ?

    Is it a good idea to set up automatic bank allocation rules in my accounting software? Here are a few of the potential pros and cons.

    • Positivies of setting up bank rules:
      • Saves a lot of time. Especially with regular, unchanging and obvious transaction allocations such as monthly bank charges or subscription fees. Making Time for more important things like understanding your financial reports.
      • Reduces human error because you only have to choose the correct account allocation details once.
      • You can add new rules as you go along and find more repeating transactions.
      • The rules can be set up for a range of amounts, so you don’t have to know the exact charge up front. (For example: with itemised phone bills , you only have to look at amounts that are higher than a certain threshold)
      • Bank rules can be set up to automatically allocated transactions, or to suggest an allocation and require your acceptance. This extra step can be helpful as you test out your rules and check you made no mistakes in their set up.
      • You can set a rule up by copying a transaction you are currently allocating, so it is quick to do and easy to check.
    • Potential negatives of automatic bank rules:
      • If you make a mistake when creating the rule (eg: select the incorrect account to allocate the cost to), it will repeat this error every time this transaction appears on the bank statement. This is, however, generally easy to fix once detected.
      • You can only set up bank rules if you are automatically downloading the bank transactions from your bank. Automatic bank downloads is something that we heartily recommend; both as a time saver and an manual error reducer – Making Time for more important things.
      • Some transactions are too complicated to be automated, so there will always be a few that need to be manually allocated.

    Happy allocating.

  • Limited Company or Sole Trader?

    We are often asked whether it is necessary to set yourself up as a limited company when first starting out, or if working as a sole trader is best. Here are a few things to consider for each option:

    • Sole Trader
      • + No upfront legal registering of company or annual financial reporting necessary.
      • + You still have to tell revenue that you have started operating as a Sole Trader (Revenue.ie, or ask us to help.)
      • + You can still register a business name if you don’t want to trade under your own name. (Business Name, or ask us to help.)
      • – You will be personally liable for all business debts
      • – You still have to submit an annual tax return and keep accounts with receipts/invoices etc.
      • – You will pay tax at individual rate (much higher than company rate).
    • Limited Company
      • + You will not be personally liable for the company’s debts (unless specifically agreed with the creditor)
      • + You pay tax on all your expenses at the company rate (much lower than individual rate).
      • + Once you hit a threadhold of income, you will register for VAT. This means reporting and paying VAT every 2 months, but also that you get the VAT back on all your expenses. (VAT registration, or ask us to help.)
      • – You must register your company with Companies Registration Office (CRO, or ask us to help.), including having at least 1 Director, a secretary and a Constituion.
      • – You will need to file annual financial and tax returns and in some instances, have your reports audited. (This is our speciality – ask us to help.)

  • Pairing with Claud to analyze the Xero App Marketplace for E-commerce Tool

    I recently worked with Claude to explore the Xero App Marketplace. Below are his words describing the process

    The Xero App Marketplace has become a critical ecosystem for businesses looking to extend their accounting software capabilities. With hundreds of apps across dozens of categories, navigating this landscape can be overwhelming for business owners. We recently conducted a comprehensive analysis of the e-commerce integration apps available in the Xero marketplace, employing a methodical approach that combined data collection, classification, and market analysis. This blog post outlines our process, which can be adapted for analyzing any software ecosystem.

    Our analysis began with comprehensive data collection from the Xero App Marketplace, specifically focusing on the e-commerce category. We cataloged all available apps, recording their names, descriptions, star ratings, review counts, and core functionalities. This raw data provided the foundation for deeper analysis but required additional structure to deliver meaningful insights. To achieve this, we developed a classification system that categorized each app based on its primary function: platform integrators (like A2X and Link My Books), inventory management solutions (like Cin7 Core and Unleashed), and specialized tools for tax compliance or B2B sales. This functional classification revealed that while platform integrators dominated the category numerically, inventory management solutions commanded higher price points.

    With the apps classified, we then investigated target market segmentation and pricing structures. Each app was assessed based on its intended audience – whether small businesses, growing mid-market companies, or enterprise-level organizations. This assessment, combined with pricing research, revealed distinct market positioning strategies. For instance, apps like Amaka offered free integration options for certain platforms to capture market share, while Cin7 Core positioned itself as a premium solution with enterprise-level capabilities and correspondingly higher pricing. Using conservative revenue modeling based on published customer numbers and pricing tiers, we were able to estimate market share and revenue potential across the ecosystem.

    Perhaps the most valuable insight from our analysis was identifying underserved market segments and functionality gaps. While the ecosystem offered robust solutions for synchronizing transactions between e-commerce platforms and Xero, we discovered a significant gap in SKU-level profitability analysis. Despite the critical importance of understanding product-level profitability for e-commerce businesses, no Xero-native app addressed this need comprehensively. Standalone tools existed outside the Xero ecosystem, but none offered direct integration, representing a clear market opportunity. This gap analysis informed our development of a detailed business proposal for “ProfitLens,” a hypothetical app designed to provide e-commerce businesses with critical insights into which products drive profits and which lose money on every sale.

    This analytical approach – systematically collecting data, classifying offerings, researching market positioning, and identifying gaps – can be applied to any software ecosystem. Whether you’re exploring app marketplaces for Shopify, QuickBooks, HubSpot, or any other platform, this methodology provides a structured way to understand the competitive landscape and identify opportunities. The key is combining quantitative data (ratings, pricing, customer numbers) with qualitative assessment (functionality, target market, user experience) to develop a comprehensive view. In today’s increasingly integrated software world, understanding these ecosystems is not just valuable for developers looking to enter the market, but also for businesses making critical decisions about which tools to adopt for their technology stack.

    Along the way Claude generated a couple of interactive visualizations like the one below:

    https://claude.ai/public/artifacts/cdd949a0-c068-4a1e-856a-51dc4e08e2dd

    Here’s a cleaned up version of the prompt I used:

    Please help me analyze the Xero app marketplace for [specific app category]

Start by exploring this URL: [insert QuickBooks app marketplace URL for your chosen category]

For this analysis, I'd like you to:

1. Create a table listing all apps in this category, including:
   - Name
   - Summary/description
   - Function/category
   - Ratings/reviews (if available)
   - Links for more information

2. Analyze the app offerings by adding a function classification column that categorizes each app based on its primary purpose (similar to how we classified the Xero apps as platform integrators, inventory management, etc.)

3. Research market data for these apps:
   - Customer base numbers (where available)
   - Target market size (small business, mid-market, enterprise)
   - Pricing models and pricing tiers

4. Create an estimated revenue analysis assuming:
   - 60% of customers on entry-level plans
   - 20% on mid-tier plans
   - 20% on enterprise plans

5. Identify any gaps in the marketplace where new entrants could potentially develop apps to address unmet needs.

6. Finally, create a detailed business proposal for a new app that would fill one of these market gaps, including:
   - Executive summary
   - Market gap analysis
   - Key value proposition
   - Core functionality
   - Technical implementation overview
   - Target market
   - Competitive advantage
   - Pricing model
   - Development roadmap
   - Market opportunity assessment

Please use visualizations and well-formatted tables where appropriate, and provide citations for your findings.

  • Why choose Xero?

    Why do we recommend our clients choose Xero as their accounting platform? There are many little reasons why Xero is a good choice, but here are a few of the main deciders.

    1. Xero is all online. This means that you can login and do some accounting work any time, any where. Also, you will always have the most up to date accounting information no matter where you log in from.
    2. With lots of security features, like 2 factor authentication, your data is always secure.
    3. Xero is constantly being updated and their helpdesk are active and helpful. Xero is continously adding new features (for example: projects and new menus to help navigate easier)
    4. Xero can automate several tasks, including: bank feeds, follow up on late customer payments, regular customised reporting.
    5. Because it is so widely used, there are many useful plug ins that you can use. Including Stripe, Payrolla, Shopify and many more.
    6. Multi currency. Xero allows you to do your accounting in however many currencies you need. For example: you can invoice clients in a foreign currency, and easily reconcile it to the bank transction in your local currency. Xero handles the account of the exchange flucations automatically for you. Making you more time.

  • Customer Data Cleanup Priorities

    What are the bits of work that I should prioritise when cleaning up my customer data

    When cleaning up your customer data, to get it ready to migrate to your new Xero system, here are a few reports you should run:

    1. List of customers – so you can check for duplicate customers.
    2. Archived/Inactive customers – Do any customers who are marked as archived/inactive still have open balances that need investigation?
    3. Income/Invoices by contact – compare income over the past year/18 months to the full list of customers, so you can see what customers have been active recently and which one you might want or archive and not transfer across to your new system.
    4. While preparing to migrate, make sure your customer’s contact details are up date. Especially phone numbers and email addresses.

  • Managing Historical Data During Migration

    One of the most common questions we’re asked is: ‘How much historical data should I migrate to Xero?’ The answer depends on your business needs, but here are some general guidelines to consider:

    1. Migrate the current financial year plus one year of historical data. This provides a good balance between having useful comparative information and keeping your new system clean.
    2. Which historical data do you regularly reference? Sales history for key customers, supplier payment records, and project profitability are often worth migrating.
    3. You can always keep your old accounts system accessible for a transition period and then export historical reports you find you periodically need.

  • Preparing Your Chart of Accounts for Migration

    Learn how to effectively handle historical financial data when migrating from Sage to Xero, including what to bring over and what to archive.

    When preparing for a Sage to Xero migration, one of the most important steps is reviewing your chart of accounts.

    1. Start by having a quick look at your chart of accounts to see if you can identify unused or redundant accounts.
    2. Next, consider how your account structure will translate to Xero’s environment. Xero has a different approach to account structures in some areas such as grouping, bank accounts, inventory and fixed assets.
    3. Consider consolidating similar accounts and creating a more streamlined structure that will be easier to manage going forward.