Why should I use Xero?
Potential changes to financial reporting will require Scouts Queensland to produce consolidated financial reports which will require timely and accurate details from all Scouts Queensland formations. Xero will provide a consistent platform from which this can be easily achieved without imposing additional requirements on Formations.
What do you mean when referring to a central location where documents can be stored?
You can attach scanned invoices and other scanned paperwork directly to the Xero transaction eg creditor’s invoice is attached to the payment details and can be viewed at any time. This feature assists both the current and future Treasurer as well as the Formation auditor to access details at their screen. No more searching to try to find the paper copy of the invoice or any other transactional notes.
How do I scan documents?
Using a Smartphone you can install a free scanner app, use a camera on your phone or use a scanner on a printer to scan documents that can then be attached in Xero.
How is the bank statement information fed directly into Xero?
Bank feeds automatically import transactions from your bank or financial institution directly into your Xero file, therefore eliminating the need to enter transactions manually. No more paper statements! Different options are available as per the technical capabilities and preference of the banks and financial institutions. To check if your account is eligible for a direct feed, see the relevant support article for your bank at central.xero.com
Once your file is setup, Xero will prompt you to setup bank feeds for your group.
Can I keep my current bank accounts?
Yes, you can keep your current bank accounts, but you may want to consider reviewing the amount of bank accounts the Formation operates as the less bank accounts, potentially the less work involved for the Treasurer and the Auditor.
Also this is a timely reminder that as stated in the Queensland Branch Scouting Instructions (QBSI 6.3.9) that funds surplus to Formation requirements should be invested in the Branch Development Fund. Other forms of investment are not permitted. Interest is paid on the Development Fund to the Formation on quarterly basis.
How do I get started on Xero?
By sending your Formation details to our Finance Helpdesk at finance@scoutsqld.com.au . Our Finance Team will provide you with the registration documents and guide you through the process of completing your accounts in Xero.
Is there a standard chart of accounts?
Yes, there is a required chart of accounts which our Finance Team will create for you.
How much does it cost?
Xero currently costs $47.73 per month (subject to annual increases from Xero) for each Formation account (only one Formation account is required for all sections), and it will be on-charged to group’s debtor’s account with Branch Support Office. For many Formations the return of the GST credits exceeds the cost of Xero.
Please note that Xero does have a lower cost package, which is approximately half the cost of the standard subscription but does have reduced use as you can only send 20 invoices per and enter 5 bills per month.
Where can I get assistance?
Are there written instructions to help the Treasurer convert to Xero?
Xero provides extensive user guides to support its software. These guides are kept up to date as the program grows and changes, for this reason, we have chosen to rely heavily on these rather than trying to recreate Scout specific user guides. A Scout Formation is much like a small business and many of these user guides will apply and be a useful resource for your Treasurer.
You should consider adopting one bank account for all Section accounts, how will Xero assist with the Section reporting? (Refer QBSI 6.3.2)
Through the use of tracking categories in Xero you can track and report separately for each Section while operating out of one bank account. This will give you the option of creating whole of group or section specific reports at the click of a button.
Does moving to Xero assist the Auditor?
Used effectively, Xero will assist with the year end verification audit as everything is contained in the one file and removes the need for spreadsheet, paper documents and other manual processes which can be time consuming for the both the Treasurer and the Auditor.
Our Treasurer currently uses other accounting software and doesn’t want to move to Xero
We understand that Treasurers may be familiar with the accounting software they currently use. We do ask that they consider the benefits of using Xero compared with the software they are currently using.
Our Treasurer has never used any accounting software and is nervous about using Xero
We understand why someone may be nervous about moving to accounting software when they have always prepared manual records, but we have the support in place to successfully guide you through the process and continue to provide assistance as you commence using Xero. Please note that Xero is very user friendly and learning to use Xero may be of benefit outside of Scouting for the Treasurer as these skills can be transferred to other business ventures or employment opportunities.
If I move to Xero do I still need to engage an external Auditor?
We understand that Formations are finding it difficult to engage an Auditor on a pro bono basis or for minimal cost.
Feedback
We welcome feedback and suggestions on how the conversion to Xero has helped your Formation or how we may have provided more assistance to your Formation during the conversion process.